As blockchain experts, our team deals with various problems every day in regards to making our blockchain technology more secure and exclusive. They are fully equipped with the right skills to fulfill the client’s requirements. Since, blockchain is not that common yet, many businesses remain curious as to how blockchain can be customized based on their nature of business. Many believe that their business might not be able to shift to blockchain because things are too complicated and unregulated, which is completely wrong. Blockchain will not only be applicable into their business, it will clear all the irregularity problems that the businesses might be facing. For different business modules and client requirements, the blockchain technology can be delivered on different types of networks depending on the goals.
In this blogpost, we will dig into these different types of blockchain networks to help you understand how these networks are different from one another and how they are functioning in the real world. If you know what blockchain technology is on basic levels, I suggest you skip the next paragraph and continue from “Different Networks of Blockchain.”
What is Blockchain?
In the past decade, blockchain technology has taken a vast leap into the future and it is rapidly changing the world around us. Experts say that blockchain technology can connect us economically just as the internet connected us socially. The best thing about blockchain is that it can be applied in all industries such as supply chain, e-commerce etc. Blockchain is a network that controls the business operations in a chain formed up of different blocks on information.
Each block contains a unique and original form of data and any changes that are further made in the future, the previous block cannot be changed or amended. The changes or amendments are made into the next block. It acts like a traditional ledger in which every move is recorded. Since it is a decentralized network, there are distributed authorities all over the network that have to approve in order for the block to be formed. Therefore, a joint force takes decisions together to avoid any biased action.
Different Networks of Blockchain
Now that you understand what blockchain is, we can dive into understanding the different types of blockchain networks. There are 4 types of networks that are deployed on different business modules as more and more businesses choose to transform on blockchain.
Following are the types of blockchain:
- Public Blockchain
- Private/permissioned blockchain
- Consortium Blockchain
- Hybrid Blockchain
On this type of blockchain network, anyone can join and perform transactions on this type of network if they have the internet. It requires no permission to be granted to join the network and every peer on the network has a copy of the ledger. One such example is Bitcoin which enabled the users to perform transactions in a decentralized manner. Similarly, we have Ethereum, litecoin and NEO. To make the public blockchain work, the participating nodes are required to validate transactions through consensus methods like Proof of Work (PoW), Proof of Stake (PoS), and so on.
Public Blockchain can be used to deploy voting systems or help fundraisers to develop their operations on this technology to encourage transparency and trust.
This private network of blockchain can also be called a permissioned blockchain. It requires permission from a network of blockchain that is closed to outsiders and the public. Only those can join the network which the network itself allows. It makes the blockchain exclusive and under the control of an entity. It is not centralized but the network as a whole becomes a central entity that controls the activity on the network.
This network works best for organizations and companies to run their operations. Such companies cannot reveal all of their information because their competitors can take advantage of it, therefore, such companies can use private blockchains to regulate business operations and use them for their internal cases. Other than that, it includes all the features that are promised with public blockchain such as, transparency, security, traceability etc.
Hyperledger and Corda are the examples of private blockchain and we offer solutions developed on these networks.
There is not much of a difference, when we talk about consortium blockchain networks because it caters to organizations and companies that are in a joint venture. To make their business more efficient, they rely on a consortium blockchain network to help them regulate information between joint parties and make joint decisions. This network enjoys the benefits of both public and private blockchain networks.
In real-life, this network is more apparent in banking and payments operations, where different banks can come together to create a consortium and decide the nodes that can validate transactions.
Sometimes, hybrid blockchain can be confused with consortium blockchain, instead, both of them are different depending on how they are deployed. Hybrid blockchain is for those organizations who are not interested in public or private networks but instead they want the best of both worlds. Their requirements suggest elements that are found in public as well as private networks, therefore, our solutions can deliver exactly just that to fulfill client’s requirements.
Such a network can be deployed in the real estate sector. The real estate companies can use it to run their operations and also incorporate the public aspect for sharing information with the public.
With every passing minute, blockchain is evolving. And it will grow more secure and efficient with time. Just as the world leaders and experts are moving towards investing in blockchain, businesses plan to switch to blockchain technology to gain a competitive edge over its competition. Therefore, these types of blockchain networks might grow to cater the future needs and may evolve into more types.
Meanwhile, you can leave us an email at firstname.lastname@example.org and we will guide you on transforming your business through blockchain technology.