Are you well fit to 2020 which is filled with several sophisticated technologies? Then, blockchain is not that amazing for you and it is a known fact that blockchain is powering up the digital and economic spheres.
To initiate with, the blockchain technology which is a shared and trusted public ledger of economic transactions that are grouped into blocks. The data storage system is unhackable and secure in a decentralized ledger. Henceforth, companies swear on blockchain development for all their business requisites.
Hope, now you have an idea about blockchain technology and reasons to prefer blockchain for your business. Right? let’s move forward to the contrasting types of blockchain networks. Blockchain networks are mainly classified into three categories.
As a matter of fact, public blockchains are absolutely decentralized. In a public blockchain, transactions are open and transparent where any user around the world can read, write and audit the blockchain. On the other hand, it is permittable for any user to run a full node and initiate mining in a public blockchain.
To point out, anybody around the world can participate in the transaction no permission is required while accessing the public blockchain. No individual or company is in charge of the public blockchain network. In this case, the query and confusion raise in your mind that if no one is in charge, who verifies the transactions? Right?
Well, here is the solution to your confusion. In a public blockchain, managing the transactions is done through several decentralized mechanisms like POW(Proof of Work) and POS(Proof of Stake).
In the POW algorithm, the probability of mining a block is ascertained by the amount of computational work done by the miner.
In the POS algorithm, the probability of new block validation is observed by how significant of a stake an individual possesses.
To mention that, public blockchains is chiefly for two things: value routing and trustless time stamping of messages.
As a result, public blockchain is preferable by a the huge users around the world. This is because they don’t have to place their trust in a third party, unlike the other networks. Bitcoin and Litecoin are the instances of the public blockchain.
Consortium - A blockchain where the consensus is controlled by a set of pre-selected nodes.
The cluster of companies come together and make decisions for the whole network, such groups are known as consortiums. To point out, these sorts of blockchain is known as consortium blockchain or federation blockchain.
Consortium blockchain varies from the public blockchain. This is because, anyone with an internet connection can become a part of the blockchain in a public blockchain, while in consortium blockchain, there is the restriction in access and only those companies that are the concern of the consortium can access the network. In the same way, consortium blockchain network discards the autonomy acknowledged to a single entity in a private blockchain network.
Henceforth, the companies which are the member of this blockchain network have the authorization to run a full node and initiate mining. Likewise, they can undergo transactions on the commissioned blockchain. Quorum, Hyperledger, Corda are examples of consortium blockchain.
Customarily, these sorts of blockchain dwell to an individual or a company and they can acquire absolute control over the network. This is more vital to notify that they have the authority to mutate transactions, add new blocks and modify balances.
In private blockchain networks, the write permission is kept centralized to one company. But, the read permission can be public or restricted to a certain extent. Due to the restricted access, it furnish high level of privacy while in comparison with the other networks. The chief perk of private blockchain is reduction of transaction costs and replacement of legacy systems. Moreover, private blockchain is secure and efficiently solve fraud problems. Comparatively, it is the safest among all the three sorts of blockchain network.I.e. Bankchain.
The Technology Rule : If there is an advantage, there is also a disadvantage. Likewise, each blockchain network has its own advantages and disadvantages. Based on the industry type, you can pick out the suited network for your business.
As a result, if your business petite privacy and control, private or consortium blockchain network is the best option for you, whereas it demands for the openness and censorship resistance, public blockchains are the best.
Deserve, decide and leverage the astounding attributes of the blockchain networks for your business.