Blockchain is defined as a decentralised, public ledger that processes and records transactions across different servers making it impossible to cheat the system. Our previous article was on the concept of blockchain but we are about to learn the different types of blockchain and their relevance. Each blockchain type has its benefits, models and usability.
- Public blockchain
Just as the name implies, public blockchain is non-restrictive and available to anyone who has access to the internet. The public blockchain network is commonly used for cryptocurrency trading and mining. In a literal sense, anyone with an internet connection can do transactions easily and openly.
Despite public blockchain being open-source, information is thereby secured and transactions can not be manipulated. It is important to note that connection on this network is peer-peer and it is decentralised.
Public blockchain is open-source and commonly used for cryptocurrency mining and exchange. Examples of some widely known public blockchain solutions are Bitcoin and Ethereum, Litecoin, etc.
- Private blockchain
While public blockchain is permissionless and non-restrictive, private blockchain is permission-based, restrictive, and operated on a closed network. This blockchain is organisation bound, it is controlled by a single entity that gives access to selected people, these people are thereby considered to be the users of the network. Just like the public blockchain, connection is also peer-peer and the controlling organization does not make it centralised (the blockchain remains decentralised). However, a private blockchain is a small network that can not be available to anyone.
Private blockchain is permission-based and organisations in this category are supply chain management, voting, multi-chain networks, etc
- Hybrid blockchain
This is a combination of both the features of the private and public blockchain, where some data are accessible and some are restricted on the network. Users have the control to distinguish which data could be public and which could be private. To also state that the hybrid blockchain is flexible and users have full access to the network.
Combining the features of the public and private blockchain with smart contract, Xinfin is a good example of an hybrid xample of an hybrid network.
- Consortium blockchain
Also known as semi-decentralised or federated blockchain. Unlike the private blockchain that is controlled by one organisation, this is managed by several stakeholders with limited access to different validators. Consortium blockchain is controlled by preset nodes, also more than a single organisation can become nodes.
A commonly known example of this federated blockchain is hyperledger.