Tag: types of Blockchain

Types of blockchain

There are four types of blockchain structures:

1. Public blockchain

Public blockchain is by nature unauthorize, allowing anyone to join, and is completely decentralize. This blockchains allow equal access to all blockchain nodes in the blockchain. Create new blocks of data, and verify data blocks.

To this day, public blockchains are primarily use for cryptocurrency exchange and mining. You may have heard of popular public blockchains like Bitcoin, Ethereum and Lightcoin. In this public blockchain, the node of the cryptocurrency “mine” solves the cryptographic equation. And creates the block for the request transaction in the network.

2. Private (or managed) blockchain

Individual blockchain, also called managed blockchain, is an authorize blockchain control by a single entity. In a private blockchain, the central authority determines who can be the node. Central authorities do not necessarily give each node an equal right to perform functions. Private blockchains are only partially decentralized. Because public access to these blockchains is limit. Some examples of personal blockchain are the Business-to-Business Virtual Currency Exchange Network Ripple and HyperLaser. An umbrella project for open source blockchain applications.

3. Consortium blockchain

A consortium blockchain is an authorize blockchain that is manage by a group of companies. Than an entity in the case of individual blockchains. So, consortium blockchains enjoy more decentralization than individual blockchains, resulting in a higher level of security. However, setting up a consortium can be a complex process. Because it requires collaboration between different organizations. Which presents logistical challenges as well as potential distrust risks (which we will examine in an upcoming article). Furthermore, some members of the supply chain may not have the technology or infrastructure needed to implement blockchain tools and may have to pay a high price for digitizing the data of those who can predict costs and connecting with other members of the supply chain.

4. Hybrid blockchain

A hybrid blockchain is a blockchain that is controlled by a single entity, but with a level of oversight by the public blockchain, which has to perform certain transactions. An example of a hybrid blockchain is the IBM Food Trust, which was created to improve efficiency across the entire food supply chain.