Welcome back!
While we have discussed blockchain and cryptos previously, today we will delve into the four main types of blockchains that are used and what they're used for. So let's look at them!
The four main blockchains (according to 101blockchains.com/types-of-blockchain/)
1: Public
2: Private
3: Federated
4: Hybrid
Public Blockchains
Anyone is allowed to to participate on a public blockchain, and participate in the consensus that governs the given protocols. The bitcoin blockchain is the most well known example of this. A public blockchain is fully decentralized, secure, and immutable, thus anyone can view the transactions, and the participants in said transactions are anonymous yet transparent.
While these features make this network excellent for use publicly, the data handling and energy output are both time consuming. They also aren't scalable. Those who use this blockchain do so
Private Blockchains
Unlike their public counterparts, private blockchains are scalable, highly efficient and provides network regulations by a single organization that governs that network. Examples of private blockchains are Ethereum, Hyperledger Fabric, and Ripple. Enterprises use these kind of blockchains because of the features listed above.
Because it's controlled by one group, this can make being part of the consensus that underpins the protocols. That is where a federated blockchain can be useful.
Federated blockchains
In this blockchain, multiple organizations can influence the network and its protocol. It is decentralized to the point it is scalable to both big and small business, and is extremely fast. They also have network regulations in place to protect privacy and maintain a high level of security. Because of the structure of this blockchain, it isn't open to the public, which means it can't be accessed by any one person.
Hybrid blockchains
The final blockchain we will discuss is the hybrid blockchain. Though there is authoritative access, only some elements of the blockchain are kept private. However, with this in mind, there is greater flexibility in what data is kept private or public. Additionally, while decentralized, it is a regulated yet highly scalable system.
Which is best?
All four blockchains have their pros and cons, and it will ultimately depend on the organization and what its needs are. Ultimately, they all share the same characteristics of transparency, privacy, and decentralization. So you can't go wrong!
See you next time.