Blockchain Technology and its consensus evolution.
Blockchain is a Distributed Ledger Technology (DLT), fast, secure etc. you’ve heard all of these and it is surely an ideal technology for each segment of the business, but here we will share with you the facts about their applicability based on its formation. “While the blockchain technology behind projects is the same, the target end users of the different types of blockchain may differ,” said Espae Hong, head of CBDC Blockchain Research Institute.
The Blockchain is surely a single technology but the types of blockchain are commendable, these are as follows:
Public Blockchain
A public blockchain is an openly shared technology that has negligible restrictions, restrictions on entry or exit of anyone. With no specific permission anyone can have the validation of participation. Which clearly means anyone can enter into the chain, become a validator of program execution without tampering the data. This type of blockchain uses the Proof of Work (PoW) and Proof of Stake (PoS) consensus mechanisms. Such networks offer incentives to the validators or miners.
The key advantages of the public blockchain technology are that-
· it is a completely transparent system of work,
· the transaction control is in the hands of each of the participants,
· the control is not in the hands of any single validator,
· the infrastructure is completely decentralized,
· every participant is accountable of their own ledger and data.
This is the concept brought by Satoshi Nakamoto and based on which cryptocurrencies like Bitcoin and Ethereum work. These are the features needed to be known and though a public blockchain is completely transparent and anonymous, it is not a much suitable solutions for major enterprises.
Private Blockchain
These are the blockchain systems maintained privately, which means the authorized body can permit or restrict someone from joining the network. The private blockchain system works in a governed manner. Here the ledger is no more public, but still it is distributed, distributed between the chosen users.
The key highlights of the private blockchain are that-
· it is decentralized but works in a governed manner,
· the participation and mining opportunity belongs just to the authorized ones,
· it is immutable,
· only the selected nodes and users can enter or view the entries.
The limitless potential of a private blockchain resolves the shortcomings of the public system. Also, it is gaining popularity in the corporate world. Many technology-based companies such as IBM, Microsoft, etc. have invested into it.
Hybrid/ Consortium Blockchain
Hybrid Blockchain is a combination of both public and private blockchain. With the never-ending growth in technology this is an improvised version of both the private and public blockchain. With its endless feature and adaptability hybrid blockchain can be customized and utilized as per the industrial requirements. Consortium Blockchain allows multiple organizations to share and maintain the work balance.
Although the benefits of hybrid blockchain are limitless, the highlighted perks are-
· it is capable of protecting the users from malfunctioning or attacks to the maximum,
· the cost of any process is minimized and does the service cost-efficient,
· as the users are only authorized the rule maintenance becomes easy.
Adaptability of any technology increases with each upgrade of invention. These are the evolutions of the Blockchain Technology and their basic details that you can utilize in your business.
