Announcement

Collapse
No announcement yet.

Types Of Blockchain

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Types Of Blockchain

    This article was originally published at https://blockchainhub.net

    Based on the way blockchain has evolved over the last few years, it can be divided into multiple types with distinct but sometimes partly overlapping attributes.

    Public Blockchains


    As the name suggests, these blockchains are open to the public and anyone can participate as a node in the decision-making process. Users may or may not be rewarded for their participation. These ledgers are not owned by anyone and are publicly open for anyone to participate in. All users of the permission-less ledger maintain a copy of the ledger on their local nodes and use a distributed consensus mechanism in order to reach a decision about the eventual state of the ledger. These blockchains are also known as permission-less ledgers

    Examples: Bitcoin, Ethereum, Monero, Dash, Litecoin, Dodgecoin, etc.

    Effects: (1) Potential to disrupt current business models through disintermediation. (2) No infrastructure costs: No need to maintain servers or system admins radically reduces the costs of creating and running decentralized applications (dApps).

    Private Blockchains

    A private blockchain is permissioned. One cannot join it unless invited by the network administrators. Participant and validator access is restricted.

    This type of blockchains can be considered a middle-ground for companies that are interested in the blockchain technology in general but are not comfortable with a level of control offered by public networks. Typically, they seek to incorporate blockchain into their accounting and record-keeping procedures without sacrificing autonomy and running the risk of exposing sensitive data to the public internet.

    Examples: MONAX, Multichain

    Effects: (1) reduces transaction costs and data redundancies and replaces legacy systems, simplifying document handling and getting rid of semi manual compliance mechanisms. (2) in that sense it can be seen as equivalent to SAP in the 1990’s: reduces costs, but not disruptive!

    Consortium Blockchains

    A consortium blockchain is often said to be semi-decentralized. It, too, is permissioned but instead of a single organization controlling it, a number of companies might each operate a node on such a network. The administrators of a consortium chain restrict users’ reading rights as they see fit and only allow a limited set of trusted nodes to execute a consensus protocol.

    Example: R3 (Banks), EWF (Energy), B3i (Insurance), Corda

    Effects: (1) reduces transaction costs and data redundancies and replaces legacy systems, simplifying document handling and getting rid of semi manual compliance mechanisms. (2) in that sense it can be seen as equivalent to SAP in the 1990’s: reduces costs, but not disruptive!

    Read more at https://blockchainhub.net

  • #2
    Currently, there are three types of blockchain networks - public blockchains, private blockchains, and consortium blockchains.

    Comment

    Working...
    X