In this Bitcoin Era, it is hard to keep up with trends that have put the world upside down with its magnificent discoveries. Amongst all the big names, the Blockchain stands out most at this stage where the technology has introduced us to an astonishing token system circulating in the digital finance system, BitIQ. When the subject of innovations comes to light for Blockchain technology, it can be witnessed that only a few were successful enough to bring about a change as the technology is highly advanced and demands the right cognition when development is sought. The four types of Blockchains are developed similarly to the ledger technology.
When the public Blockchain is in for discussion, its most important attributes indicate its extravagant nature, where anyone from anywhere is allowed to enter this network. The permissionless network works with the Distributed Ledger Technology, where a particular consensus helps it conduct peer-to-peer services. The famous cryptocurrency, which happens to be the first one to be invented ever, originated in a public blockchain first.
The decentralized nature of the public Blockchain can only allow authentic data in the first place. For Blockchain is immutable, all the information stored in it regarding transactions, mining activities, and open-source data can never be reversed or changed, making the system more secure and approachable. The public Blockchain is independent and free of any particular influence. The only issue in a public blockchain is the 51% attack, which allows the perpetrator to alter information present in the Blockchain by gaining complete control over a network.
When the public Blockchain is reserved for no single force and works in a vast environment, private blockchains are completely different from it. This is a much-closed environment and only lets a limited number of participants enter the network. Though it often connects to a public blockchain to complete an exchange process, the keys of these networks only circulate in a smaller group.
Even though there are differences between it and the public Blockchain, the decentralization and the peer-to-peer connections are present here as the most important two key attributes of a blockchain system. The system is often run by one person only, where it is safer for them to conduct a transaction when entering through a key-protected network chain.
These are highly useful for using an organization or company where efficient and fast work is required. As a more closed environment, it is very safe and does not accept any change requests from a third party. However, the main problem here in a private blockchain is that its limited number of blocks can be a risk for the safety aspects. Most dangerously, these do not maintain anonymity.
A consortium blockchain is established as a bridge between two or three organizations where regular interactions are needed. It consists of both private and public blockchains. When the private networks work on the inside information of a system, the public network helps it establish a connection with other forces in terms of business or exchange activities.
The most advantageous aspect of the consortium blockchain is that it is not controlled by one person only but gives access to work for a particular group. The validator nodes here help confirm the safety and individuality of the information manifold. The problem here is that the member nodes are vulnerable and can compromise the whole network’s functionality.
When the consortium blockchain allows two different blockchains, public and private, in a limited way, the hybrid Blockchain mixes these two up in equal measure, availing all the possible features in one place. The smart contracts are very much present in this Blockchain, allowed by the verification process to keep up with the perfect balance between permission and permission-less. The transaction processes, although, are a bit different.
The user identity is always unidentified but only shares this data when a transaction occurs. By being protected by the protocols of both public and private blockchains, it can easily avoid the 51% attack. However, the network seems to be a little stoic from time to time, where it does not offer any incentives to the users for participation and engagement.
In this Bitcoin Era, blockchain technology is uncertain as many things are still left to know. But it, most importantly, never alters one of its features- the decentralization.