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Types of Blockchain

There are three main types of blockchains: private, public, and consortium. Private blockchains have restricted access and are controlled by one organization. Public blockchains allow anyone to participate and see transactions. Consortium blockchains are controlled by a group of companies through a representative node system.

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42 views7 pages

Types of Blockchain

There are three main types of blockchains: private, public, and consortium. Private blockchains have restricted access and are controlled by one organization. Public blockchains allow anyone to participate and see transactions. Consortium blockchains are controlled by a group of companies through a representative node system.

Uploaded by

Sofocle Technologies
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Types of Blockchain

www.sofocle.com
The Blockchain is undoubtedly
a brilliant invention –
conceptualized first in 2008 by
a person (or a group of people)
known as Satoshi Nakamoto.
Nakamoto mined the first
Bitcoin block in 2009 and with
that, the cryptocurrency era was
born. Since then, Blockchain
has evolved better and today
more and more products
utilizing the Blockchain
technology are emerging in the
market. So, let’s take a look at
what exactly is the Blockchain
technology.
Blockchain is a decentralized,
distributed and public digital
ledger used to record
information about transactions
in cryptographic blocks
connected to each other
hierarchically.
This creates an endless chain of
blocks and hence the name
Blockchain. Once the data or
transaction is written to these
blocks, they cannot be modified
or tampered, creating an
extremely high degree of
security.
Let us take a closer look at the
different types of Blockchain
available in the market and
their functionality.
There are mainly three types of
Blockchain:
Private
Public
Consortium or Federated
Private Blockchain
Private Blockchain as its name
suggests is a private property of
an individual or organization. In
a private Blockchain, read and
write access permissions are
kept centralized to one
organization.
Access rights are restricted to a
group of participants. Private
Blockchain is mainly used for
database management and
auditing, which are internal to
that particular organization and
require data privacy and
security, so permissions are
given to a group of participants
who can access the Blockchain
network. Private Blockchain is
also known as Permissioned
Blockchain.
Examples of private Blockchain
include MONAX, Multichain etc.

Public Blockchain
As the name suggests, a Public
Blockchain is the one where
anyone can participate without
permission. In a public
Blockchain, anyone can
download the code and run a
public node on their local
servers, validate transactions in
the network and thus,
participate in the consensus
process.
Anyone in the world can send
transactions through the network
and expect them to be included
in the Blockchain, given that they
are valid transactions. All the
transactions in a Public
Blockchain Solutions UAE are
transparent (and anonymous) and
hence, anyone can read these
transactions on the public block
explorer. Public Blockchain is also
known as Permissionless
Blockchain.
One of the key benefits of using a
Public Blockchain is that it incurs
no infrastructure costs. There is
no need to maintain servers for
creating or running decentralized
apps.
Examples of Public Blockchain
include Bitcoin, Ethereum,
Litecoin, Dodgecoin, Monero,
Dash etc.
Consortium or Federated
Blockchain
Consortium or federated
Blockchain is the one that operates
under the leadership of a group.
Here, a group of companies or
representative individuals come
together and make decisions for
the benefit of the network. Such
groups are called consortium or
federation and hence the name.
Consortium Blockchains are mostly
used in the banking sector. For
example, let’s suppose there is a
consortium of 15 financial
institutions, and each institution
operates a node, so 10 nodes must
sign every block in order for the
block to be valid. Here the
consensus process is controlled by
these pre-selected set of nodes.
Examples of Consortium
Blockchain include R3 (banks), EWF
(energy), Corda etc.
These different types of Blockchain
are used for different type of
industries. If privacy and control is
required, Private and Consortium
Blockchain Are The Best Solutions
and where openness and
anonymity is required, Public
Blockchain is the solution.

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