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What Are The Different Types of Blockchain Technology?

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The term Blockchain first came in the 1990s but it was actually implemented in 2009 when an anonymous developer named Satoshi Nakamoto made Bitcoin using Blockchain. A blockchain is a chain of blocks where each block contains three unique pieces of information that are data, hash, and hash of the previous block. Now the first block which does not have a hash of the previous block because there is no block previous to it is called Genesis Block. If any person changes any of the blocks, all the blocks next to them will become invalid. So to make that change successful that person has to make changes in all the blocks next to it. And this is a very time-consuming process and it takes years, so that’s why it is nearly impossible to make any changes in any block. Although the basic fundamentals of all blockchains are the same, there are different blockchain networks or blockchains based on certain criteria. 

Blockchain Network

A Blockchain network is an infrastructure that allows applications to use ledger and smart contract services efficiently. Here smart contracts are generally used to originate transactions that are further transmitted to each peer node in the network and recorded on their copy of the ledger. There are mainly 4 types of Blockchain networks-

  1. Public Blockchain
  2. Private Blockchain
  3. Hybrid Blockchain
  4. Consortium Blockchain

Let us discuss them one by one in detail:

Public Blockchain Network

As the name suggests it is public which means it is open for all, anybody can join this blockchain. This blockchain has no central authority that can monitor everything. Therefore, people do not require any permission to be part of this blockchain. People who want to join this blockchain only need an internet connection to sign in to their network. This blockchain works on a broad network of people. Here any user can see current and past data and perform activities like mining. They can also confirm the transaction and find bugs and can suggest any improvements but they can’t change any data on their own.

All the modern date cryptocurrencies like Bitcoin and Ethereum are using Public Blockchain. A public blockchain is not controlled by a single entity but if any person takes control of more than 50% of the computers present in the network then he can hamper the network.

Advantages of Public Blockchain

Following are some advantages of public blockchain:

  • It is open to everyone.
  • It is truly decentralized.
  • It is completely transparent.

Disadvantages of Public Blockchain

Following are some disadvantages of public blockchain:

  • It has a slow transaction speed.
  • It requires a lot of energy.
  • It has a high transaction cost.

Private Blockchain Network

As the name suggests it is private means it is privately owned by any organization, group of people or individual. This type of blockchain works on a small network of people. Here not only an internet connection is required to join. People have to take permission from the authority which is managing this blockchain to join, if permission will be granted then people can join and contribute to that network. It is mostly used by organizations where they ensure that people can change, renew and delete data. It prevents an organization’s data from unwanted people and that is what the organization wants. Every organization wants that their data should be safe and by noway their competitor accesses their data. So they are using blockchain.

This blockchain is relatively fast than the public blockchain because it has less no. of people than the public blockchain. Some people call it a fake blockchain because the main feature of blockchain is decentralization but this blockchain is under the control of any central authority.

Advantages of Private Blockchain

Following are some advantages of private blockchain:

  • It has a high transaction speed.
  • It has very less energy consumption.
  • It is scalable.

Disadvantages of Private Blockchain

Following are some disadvantages of private blockchain:

  • It is not that secure.
  • It is not that decentralized.
  • It cannot grab that much trust.

Hybrid Blockchain Network

As the name suggests this blockchain is a hybrid of two different blockchains and those are public blockchain and private blockchain. This blockchain tries to keep the good part of both public and private blockchain. This blockchain allows a certain data section to go public while keeping the rest of the data private.

This blockchain is controlled by some higher authority but sometimes it gives freedom as well. If the authority wants then they can open any transaction publicly or keep that transaction private. But once any transaction gets verified and any block gets in the blockchain then that authority cannot make changes. Because of this, a hybrid blockchain is both decentralized and secured. Some examples of hybrid blockchains are the Ripple network and the XRP token and IBM food trust.

Advantages of Hybrid Blockchain

Following are some advantages of hybrid blockchain:

  • It has a highly flexible setting.
  • It has a very high operational speed.
  • It is Secure.

Disadvantages of Hybrid Blockchain

Following are some disadvantages of hybrid blockchain:

  • It is very hectic to maintain.
  • It is not that transparent.
  • It is controlled by authority.

Consortium Blockchain Network

Before knowing about consortium Blockchain, we should first know about the consortium. A consortium is an association of several organizations. So, a consortium blockchain is a blockchain in which many organization participates. It is also termed a federated blockchain. This blockchain is more decentralized than a private blockchain because it is not only owned by a single organization rather it is owned by a group of organizations. But it is a permission blockchain like a private blockchain. Some examples of this type of blockchain are R3 and Energy Web Foundation.

Advantages of Consortium Blockchain

Following are some advantages of consortium blockchain:

  • It is secure from attacks like SQL injection.
  • It is flexible.
  • It is economic.

Disadvantages of Consortium Blockchain

Following are some disadvantages of consortium blockchain:

  • Here up-gradation of the protocol is tough.
  • There is a lack of cooperation in this blockchain.
  • It has lack effectiveness.

Comparison between different types of Blockchain

Parameters Public Blockchain Private Blockchain Consortium/Federated Blockchain
Definition It is open to everyone and anyone can participate. It is controlled by owners and access is limited to certain users. It is a combination of public and private blockchain, which means some processes are kept private others public.
Cost of transaction Costly Not so costly Not so costly
KYC needed No Yes Yes
Incentive Public blockchain incentives participants to grow the network. Private blockchain is limited, hence it has no similar incentives as that of a public blockchain. Consortium/Federated blockchain can opt to incentivize users if they wish.
Transparency It is entirely transparent. It is transparent to only those users who are granted access. Transparency depends on how owners set rules.
Transaction speed Slow Faster than public blockchain Fast


Last Updated : 06 Jun, 2023
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