Different Types of Blockchain

To begin with, Blockchain is a Decentralized public digital ledger useful for transparent information sharing within the same business network. In addition, it is useful for recording the transactions across networks and ensuring that these can't be altered by anyone. This technology duplicates and distributes transactions across various computer devices.

Different Kinds of Blockchain

There are different uses of Blockchain and these cases require different kinds of Blockchain technology. Primarily there are three different kinds of Blockchain technology and each kind has its uses and benefits. To learn about these kinds, one can visit the Blockchain Course. Below is a brief description of different types of Blockchain.

• Public Blockchain - This is a non-restrictive and permissionless type of Blockchain and anyone can sign to the Blockchain platform with it. It has no restrictions regarding who can access it for transactions and validation. No one is solely responsible for controlling the Blockchain and therefore data remains secure and immutable. In this Blockchain type, the authority of the Blockchain is divided equally among each node in the network. Furthermore, the Public Blockchains are always fully distributed and are useful for developing cryptocurrencies like Bitcoin and Ethereum.
• Private Blockchain - It also goes by the name of permissioned Blockchain and it is highly restricted in terms of who can access it. It only allows access to pre-chosen entities which are permitted by the developers or the authorities. It is a closed Blockchain network and organizations use it to store confidential and important data and documents. Private Blockchain ensures that these important data are only accessed by specific people in the organization. In other words, the data stored in it is beyond the reach of external entities.
• Consortium Blockchain - This type of Blockchain consists of present nodes that are responsible for controlling the consensus procedures. It is similar to the Hybrid of Public and Private Blockchains and It consists of features of both of them. Furthermore, it even includes a validator node responsible for initiating, receiving, and validating the transactions in the Blockchain. Organizations use this Consortium Blockchain when they want to share the Blockchain and still restrict data access to themselves. This approach keeps the data from public access and allows a business to share it.

What are the Benefits of Using Blockchain?

Blockchain ensures a decentralized and secure system and therefore it has numerous uses in today's era. This technology provides immutability and keeps data highly safe and secure from any unauthorized access. Using Blockchain ensures that the data remains impossible to erase or replace.

In addition, this technology ensures immutability and allows the network members to verify the data recorded into the blockchain. Thus, resulting in improving the public trust of the network. Due to these reasons, many companies use Blockchain and look towards hiring professionals who have completed Blockchain Online Course. Given below are some of the significant benefits of using Blockchain Technology.

• Transparency - Blockchain is a decentralized technology and it allows members to verify the recorded data. This makes it highly trustworthy among the public.
• Censorship - It doesn't follow censorship as no single party is responsible for controlling this technology. So, neither private nor government authority can interrupt the operation of the network.
• Traceability - This technology facilitates an irreversible audit trail and ensures that a user easily trace the changes in the network. This eliminates the chances of any fraud.
• Cost Reduction - Using Blockchain establishes a decentralized consensus mechanism and eliminates the need for third-party intermediaries. Furthermore, it optimizes the supply chain.
• Increases Data Integrity - It facilitates a cryptographic algorithm and ensures that each transaction goes into a block and is linked to the previous one. Thus, ensuring integrity and immutability of data.

Also, Read This Post: How Blockchain is used in Supply Chain

Conclusion

Blockchain is useful for recording transactions across networks. In addition, it duplicates and distributes transactions across various computer devices. There are three types of Blockchain ie Public Blockchain, Private Blockchain, and Hybrid Blockchain. This is a decentralized technology and it doesn't follow censorship as no single party is responsible for controlling it. Furthermore, it facilitates an irreversible audit trail and ensures that a user easily trace the changes in the network. In conclusion, it provides a cryptographic algorithm and ensures that each transaction goes into a block and is linked to the previous one.