Since day one of Blockchain technology, firms and individuals have started making do with the revolutionary benefits of Blockchain technology.
Blockchain as a “never do away with” in the tech industry today, has tremendously fostered a change in its adoption.
In this article, we look into its type and some benefits it holds for the future of the decentralised web.
Public Blockchain
Public Blockchain is like public transport to different destinations with the same bus. Each passenger gets to his or her choice destination and alight.
So is Public Blockchain, open to everyone, allows anyone to join and make verified transactions.
We can best describe it as a communal ledger, where anyone and everyone can determine the cause of action.
Blockchain in itself, runs on a decentralised network, with no central authority dictating to them what to do and what not to do.
The Benefits of Public Blockchain
Decentralisation: Censor resistance, the anti-control entity, in essence, public blockchain performs a decentralised network of nodes.
Transparency: It fosters trust in transactions, as anyone can see what transaction is performed on the network. So making Public Blockchain transparent.
Security: proof-of-stake is being used here, it makes it difficult for any malicious activity or to alter any transaction. Consensus Mechanism covers here.
Private Blockchain
Private Blockchain is a restrictive and permission-based Blockchain that has its operations in a closed network.
It is widely used in organisations where it can only be used or accessed by an authorised user or member.
Specially made for enterprises and organisations that majorly want to use Blockchain for internal use.
Private Blockchain is highly centralised because it’s been maintained by one authority.
The Benefits of Private Blockchain
Privacy and Confidentiality: Private Blockchain restricts access to only authorised users. Important to organisations and businesses that value Confidentiality.
Efficiency: Private Blockchain offers high transaction throughput and saves time for transaction confirmation.
Scalability: Private Blockchain can be easily experimented with to meet businesses’ and organisations’ needs. Useful to organisations with high transaction rates.
Consortium Blockchain
Consortium Blockchain is widely adopted for organisations that use both Public and Private Blockchains for their operations.
The need for more than one central control in the Blockchain network.
It’s also called or referred to as Federated Blockchain.
It maintains a decentralised nature since it is neither a public nor private Blockchain.
The Benefits of Consortium Blockchain
Shared Control: There is joint control of the network. It allows for collaboration and shared value for decision-making in industries.
Speed: Like public and private Blockchain, it allows for higher and more transaction processes. Let’s use this scenario, an enterprise where a slightly decentralised network is needed without compromising efficiency.
Cost Savings: It is cost-effective, as the cost is shared among users, when maintenance of infrastructure is needed, compared to maintaining a single Blockchain.
Hybrid Blockchain
Hybrid Blockchain minimises the limitations of both Public Blockchain, Private Blockchain and Consortium Blockchain.
Hybrid Blockchain makes the best use of the aforementioned blockchains to improve transparency and decentralisation while maintaining balance.
It allows for keeping sensitive information safe and secure while allowing some parts of the ledger to be open and public.
The Benefits of Hybrid Blockchain
Flexibility: Organisations can set a level of access and control as they want.
Diversity: Diversity is a game changer. Hybrid Blockchain adds colour to the promise of Blockchain technologies.
Conclusion
The uniqueness of diverse types of Blockchain, public, private, Consortium, and hybrid, offers important benefits and also looks forward to solving their various challenges and needs in all industries.
