Types of Blockchain
Blockchain – the underlying technology behind Bitcoin has gained popularity nowadays. A blockchain is a database that offers various advantages as compared to the other databases. A blockchain has a decentralized structure having no single point of failure. The data stored on the Blockchain is completely tampered proof and cannot be changed. Also, the data which is once stored on a Blockchain will always be stored there and all the details of storage and transfer are visible to everyone connected to the network and also, to anyone not connected to the network who wishes to see and verify such details on a blockchain.
A Public Blockchain is the one in which data stored on a Blockchain is accessible to anyone in the world, and anyone can read, write and make changes in it. In a Public Blockchain, the data is shared equally amongst all the connected users and there is no permission is required access the data on a public blockchain.
A Public Blockchain is based entirely on a system which is trusted less and no special privileges are given to any participant or node on a blockchain. After downloading a particular software, the data is accessible to all the participants.
Bitcoin is the most aggressive form of a Public Blockchain. A truly decentralized currency, it could be described as a censor-proof form of a blockchain.
Due to its acceptability and accessibility to all the participants in a blockchain, this kind of blockchain is known as a Public Blockchain. But there are a few other types of Blockchain as well. Read about them and their use cases below.
In a Private Blockchain, there are only a few participants who are granted to take part in using the blockchain and use the blockchain as proof of transaction. This type of blockchain is generally used and operated by institutions and organisations for their internal usage. The databases of a Private Blockchain are showcased as a distributed ledger.
Private Blockchains are much faster than a Public Blockchain because in a Public Blockchain there is a huge pile of data which slows down the transaction speed. As access to a Private Blockchain is restricted to certain participants only, this kind of blockchain is much faster.
A Private Blockchain is generally used in an organisation, and that organisation has the permission to decide who will write data on a particular blockchain. Limited use of a blockchain ensures greater privacy levels, which is a feature not available in a Public Blockchain.
Permissioned Blockchain is a type of Private Blockchain which has majorly gained popularity in the last few years. It could be considered as a midway or a hybrid between a Private and Public Blockchain or a massively trusted and a low trust technology.
A Permissioned Blockchain is also known as a Consortium Blockchain, in which some nodes are previously selected to participate in the transaction process rather than giving allowance to all the participants in a Public Blockchain or restricting the control to a single entity, organisation or company, like in a Private Blockchain.
The speed of transactions and the transactional efficiency is amazing in a Permissioned Blockchain as the verifiers in this kind of blockchain is very few, which reduces a major amount of time in the verification process. A Permissioned Blockchain also ensures that privacy of the user data in ensured, without giving the entire access to a single entity/organisation.
Use Cases of a Blockchain Technology
A use case of a blockchain technology majorly depends upon the problem that you are trying to solve using that technology. Each type of blockchain has its own advantages and disadvantages. So now the question arise which model is best suited for your use? Well, that depends upon the speed, privacy levels and the amount of data required on use on that blockchain.
All the blockchain technology provides certain kinds of privileges to its participants. Now this article will surely make you understand how you can decide upon the Blockchain that you have to use!