There are four different types of blockchain networks that are used. These are public blockchains, private blockchains, hybrid blockchains, and consortium blockchains. Each of these will have its pros, cons, and uses. We will look to consider them all in this article.
If you are a blockchain developer or simply want to know more about blockchains, then we will seek to understand better the different types of blockchains that exist in computing and web development.
Cryptocurrencies such as Bitcoin originate using public blockchain technology. Bitcoin would help with making distributed ledger technology (DLT) popular. Its advantage is that it removes the problems associated with centralization. These include transparency and security.
DLT works in the way described by not storing its information in any single place, but instead, distributing that data across, what is referred to as, a peer-to-peer network.
The decentralized element of this requires a method that is used for verifying the authenticity of data. This method is known as a consensus algorithm and involves those participating in blockchains reaching agreements about the present state of the ledger. Typical consensus methods used are proof of state (PoS) and proof of work (PoW).
Private blockchains function in more restrictive environments, such as a closed network. This will likely be one under the control of a single entity.
These private blockchains will operate just as a pubic blockchain network does, by using peer-to-peer connections, along with decentralization but will be a lot smaller in scale. They will limit just anyone joining and providing computer power.
Another name for a private blockchain is a permissioned or enterprise blockchain.
We so often want the best of everything, and we can have that with hybrid blockchains. These essentially combine the elements associated with public and private blockchains.
Hybrid blockchains allow companies to set up systems that are private and permission-based, alongside a public system that does not require permission. The effect of this is to allow control to access specific data stored within a blockchain and to be able to control what data is opened for public access.
The other type of blockchain to consider is the consortium blockchain, which is also referred to as a federated blockchain.
Similar to a hybrid blockchain, there are public and private features attached. The difference lies in the fact that many members can collaborate on a decentralized network.
A consortium blockchain is a private blockchain that will have limited access to a certain group so that it eliminates the risks, in respect of just a single entity controlling the network of the private blockchain.
We hope that this article has helped in explaining the differences between the types of blockchains, so that they can be considered in web development.
Web development will require an understanding of blockchains and how they work, so that maximum functionality and security will be achieved for businesses. In simple terms, a blockchain is a system that allows information to be recorded in a way that is difficult, if not impossible, to change. This includes those trying to hack into a system.
The blockchain’s digital ledger of transactions will be duplicated and distributed across entire computer network systems that are on the blockchain. This is principally how the technology achieves its aims. There are, however, differences in terms of access between the different types of blockchains.
There is much about computing that is technical both in terminology, as well as application and it is good to know just why things exist as they do. A thirst for knowledge is what will drive web development forward, so that it suits the needs of both businesses and personal users.