Different Types Of BlockChain

Different Types Of Blockchains In The Market You Need to Know in August, 2019

 

What are the different types of Blockchain?

Blockchain came to limelight because of Bitcoin. Since then several organizations, governments, and banks have been trying to utilize the Blockchain.

But what is the exact  difference between various popular Blockchains?

 

 

There are mainly three types of Blockchain:

  1. Public Blockchain
  2. Private Blockchain
  3. Consortium or Federated Blockchain

 

 

Public Blockchain

Anybody on the planet can download the information and read the information. Anybody can take part in the consensus process to write the information or block into the public Blockchain. There are various public blockchains.

Bitcoin which is a distributed cash trade was the principal public Blockchain pursued by Ethereum which enables anybody to build smart contracts and decentralized applications on it. Some different models are Dash and Lisk.

A few people feel that since public blockchain is open source, it isn’t secured. Unexpectedly, it is exceedingly secured utilizing cryptography and consensus protocol.

 

Examples – Bitcoin, Ethereum, Dash, Lisk, Factom and Blockstream

Here are the three things you have to recall that characterize a public Blockchain.

(1) Anyone can download the code and begin running a public node on their nearby gadget, approving exchanges in the system and taking an interest in the agreement procedure. This gives anybody the privilege to partake in the process that figures out which blocks get added to the chain and what the current shape and size of the Blockchain is.

(2) Anyone can execute in the system. The exchanges ought to experience as long as they are valid.

(3) Anyone can access and read exchanges utilizing a block explorer. Exchanges are straightforward yet anonymous.

 

A few best in class public Blockchain protocols dependent on Proof of Work agreement algorithms are open source and not consent. It essentially infers that anybody can take an interest, without consent.

 

This nature of the public Blockchain has two noteworthy ramifications.

Impacts:

(1) Everyone bears the possibility to upset current business models through disintermediation.

(2) Distributed foundation costs: no compelling reason to keep up servers or framework administrators deeply lessens the expenses of making and running decentralized applications Dapps).

 

 

Private Blockchain

In Private Blockchain, all authorizations are held centralized to an association. Organizations who needed to make own currencies begun utilizing this sort of Blockchain.

One noteworthy feedback of Private Blockchain is that since it isn’t decentralized, it’s only a distributed database. There are a few points in favor of this methodology.

One it permits a few organizations who have consistence and protection prerequisites to implement Blockchain.

Second, it includes the qualities like cryptographic auditing and known identities to the inner procedures.

In any case, with private Blockchain, the focal idea and magnificence of decentralization and open protocols gets lost.

Examples of private Blockchains include MONAX and Multichain.

 

Just like we recounted for public Blockchains, here are the key implications of the implicit nature and characteristics of private Blockchains.

  • Reduction in transaction costs and data redundancies
  • Simplified data-handling and more automated compliance mechanisms

 

 

 

Consortium Blockchain

A consortium blockchain is a blockchain where the consensus procedure is controlled by a pre- chosen set of nodes; for instance, one may envision a consortium of 15 money related organizations, each of which works a node and of which 10 must sign every block in order for the block to be valid.

Consortium Blockchain as the name recommends is controlled by a consortium of individuals. It has pre- characterized set of nodes, the clients with access to write the data or block.

For instance on account of Trade Finance utilize case, the consortium might take part banks, merchant, exporter, ports of sending and getting nations, custom authorities and so on.

A portion of these members will have write access and a few or all will have read access.

It is not completely decentralized as public blockchain.

 

ExamplesRipple and R3

This platform would be incredible for joint efforts at the organization level.

This sort of Blockchain attempts to expel the sole authority which gets robed in the single entity by utilizing private Blockchain network.

 

Impacts:

(1) reduces transaction expenses and data redundancies and replaces legacy systems, streamlining document handling and getting rid of semi manual compliance mechanisms.

(2) in that sense it very well may be viewed as proportionate to SAP in the 1990’s: lessens costs, however not troublesome!

 

 

 

Public Vs Private Vs Consortium BlockChain

 

Public

 

No centralised management

 

Participants

Permissionless

Anonymous

Could be malicious

 

Consensus Mechanisms

Proof of Work, Proof of Stake, etc..

Large energy consumption

No finality

~51% attack

 

Transaction Approval Freq.

Long

Bitcoin: 10 min or more

 

USP

Disruptive

Disruptive in the sense of disintermediation. No middle men needed. 

 

 

Consortium

 

Multiple Organisations

 

Participants

Permissioned

Identified

Trusted

 

Consensus Mechanisms

Voting or multi-party consensus algorithm

Lighter

Faster

Low energy consumption

Enable finality

 

Transaction Approval Freq.

Short

100x msec

 

USP

Cost Cutting

Can radically reduce transactions costs. Extreme cost cutting opportunities.

Less data redundancy, higher transactions times, more transparency.

 

 

Private

 

Single Organisation

 

Participants

Permissioned

– Identified

– Trusted

 

Consensus Mechanisms

Voting or multi-party consensus algorithm

Lighter

Faster

Low energy consumption

Enable finality

 

Transaction Approval Freq.

Short

100x msec

 

USP

Cost Cutting

Can radically reduce transactions costs.  Extreme cost cutting opportunities.

Less data redundancy, higher transactions times, more transparency.