What Are The Different Types Of Blockchain Technology? Explained.
Technological development has always paved the way for new changes and transformations which are in the best internet of the companies and the end-users. Blockchain technology is one such aspect that the tech community is actively talking about. Evolving from an underlying framework of Bitcoin to becoming a part of the mainstream system, Blockchain has witnessed tremendous growth over this period. Blockchain now finds application in food, finance, healthcare, media, marketing, supply chain and more. All these industries are now seeking the active involvement of Blockchain professional and are hiring certified Blockchain experts who can bring the best of this technology to their businesses. But when we talk about Blockchain, then its role is not just limited to distributed ledger technology; rather, it finds application in different segments. Here we will be highlighting some of the key aspects of Blockchain technology.
Key features of Blockchain
Distributed ledger technology- We all know that Blockchain is the distributed ledger that has immutable records of transactions. Time-stamping of these records ensures their safety and security. And once a record finds an entry into the ledger, it is also impossible to alter it, thus making Blockchain a highly secure system.
Immutable records- No participant of the system can tamper with the record on the ledger. If there was an error in the record, then a new transaction must be added to reverse the error, and both the errored and error-free records will be present simultaneously on the shared ledger.
Smart contracts- Smart contracts are being used to fasten the transaction and enhance the process’s transparency. These are pre-programmed contracts that have conditions agreed upon by both parties. Once the conditions are met, the transaction is executed.
We know that public Blockchain has raised many eyebrows because of ease of participation and lack of governance. Now, these features remain common, but the functionality of Blockchain changes. Hence there has been a transformation in the types of Blockchain and its application.
Types of Blockchain:
Public Blockchain networks-As evident from the name, this is an open Blockchain system where anyone can participate. There is very little privacy for the transaction, which acts as a drawback in this system.
Private Blockchain networks- These work on peer-to-peer interaction. But unlike public Blockchain, the private Blockchain has an organization giving the network and allowing the participation in the system. This is a bit more secure than the public Blockchain.
Permissioned Blockchain networks- This Blockchain platform is suitable for enterprises. Remember, public Blockchain can also be permissioned. It is important to note that this platform places restrictions on who will be allowed to be a part of the system. The participant must receive the invitation to be a part of this network.
Consortium Blockchains- In this case, different organisations share the responsibility of maintaining the Blockchain. The preselected organization decides who will submit the transaction or access the data. This one is perfect for businesses when all the participants need to be permissioned and have shared responsibility.
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