Explain Different Types of Blockchain: which one Is Best For Business?

By Eva Carler on The Capital

The rise of Blockchain technology has created a significant impact on across the different segments. At the same, it is important to know how this technology will be transforming the future. When we talk about Blockchain technology, then there are myriads of developments taking around it. The Blockchain platform is an open-source DLT where every information is time-stamped and encrypted cryptographically. However, one of the major drawbacks of the traditional Blockchain platform like Ethereum is public, and anyone can easily access the system. If we want Blockchain technology to become a part of mainstream business, then we need a higher security level with no scope of tampering and data alteration.

Blockchain is technology at a nascent stage, which is still developing, and there are various transformations taking place in this field.

Different Types of Blockchain Platform:

The popular Blockchain platforms available are:

Public Blockchain like Bitcoin, Litecoin

Private Blockchains like Corda and Hyperledger Fabric

Consortium Blockchain

Hybrid Blockchain like Dragonchain

Explanation:

Public Blockchain– This is the most conventional form of Blockchain, which is open to all. Bitcoin, Ethereum are examples of the same. It is a permission-less Blockchain. Anyone who has access to the internet can become a part of this system. Each participant is known as a node. These are authorized centers or individuals or nodes which have access to the system. They can do transactions, do mining, and also do proof-of-work for any new addition of blocks.

Private Blockchain– The public Blockchain is permission-less, and hence anyone can access this system. But with Private Blockchain, this problem can be easily overcome. One of the examples of this is Corda. This is a permissioned Blockchain developed for enterprise use. Only a limited number of people can gain access to this system. The authorizations, permissions, accessibility is controlled, thus ensuring complete safety of the system. This kind of Blockchain is useful for supply chain, voting, transactions, asset ownership, and digital identity.

Consortium Blockchain– As evident from the name, this type of Blockchain is accessed by control or group of organizations, which is unlike private Blockchain. It is a semi-decentralized Blockchain. More than one organization can participate in this and do mining. This type of Blockchain is useful for government and banking organizations.

Hybrid Blockchain- This Blockchain is a mix of both private and public Blockchain. So the user enjoys the benefits of both types of a Blockchain platform. Access to this network is controlled. Only a selected section of data or information is accessible to the public. It is a flexible Blockchain system wherein the user can use private Blockchain along with another Blockchain system. Dragonchain is an example of the same.

While the last two types of Blockchain are fairly new, private, and, public Blockchain is comparatively more popular, and companies are using the same for their business operations.

Conclusion- The set of advantages and disadvantages vary from one Blockchain to another. Coming to our question, which Blockchain is best for the business, then based on the business requirement, you can choose the desired platform.

If you wish to know more about Blockchain, you must connect with Blockchain Council.

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