There has been a lot of talk about blockchains and cryptocurrency- How Many Blockchains are there
cies lately. But how many blockchains are there? And what is the difference between them all? This blog post will explore the different types of blockchains and try to answer these questions! How Many Blockchains
Table of Contents
Public blockchain
A public blockchain is a blockchain that anyone can join and use. An example of a public blockchain is Bitcoin. You can check out https://www.okx.com/markets/prices to see real-time transactions happening on the Bitcoin network. Anyone with a computer can download the Bitcoin software and participate in the network. The unique features include transparency, immutability, decentralization, security, and censorship resistance.
Advantages
- Ease of implementation. Private blockchains are often easier to implement by using off-the-shelf blockchain software as opposed to developing all of the components from scratch
- Security is a major concern for any business, especially with critical financial data and sensitive customer information.
Private blockchain
A private blockchain is a blockchain owned by a business or other organization, and only that business or organization can join. An example of a private blockchain is Hyperledger Fabric – which has many applications like supply chain management, data tracking, and record-keeping. The unique features include having different permissions for different members, security, and privacy.
Advantages
- An organization can create a private blockchain to securely organize and manage its operations without relying on public blockchains such as Bitcoin.
- Cryptoassets (such as Bitcoin) will not be available on a private blockchain because there are no other organizations that can join them. As a result, users have greater security when they move their crypto assets to a private blockchain like Hyperledger Fabric.
- The big advantage of using a private blockchain is that it removes the need for many common components in public blockchains.
Hybrid blockchain
A hybrid blockchain is a combination of a public and private blockchain. It allows users to join both the public and private blockchains. An example of a hybrid blockchain is R3 Corda – a cloud-based platform for implementing financial services for organizations such as banks, asset management companies, and insurance companies. One of the advantages of Corda is that businesses can control who has access to the blockchain and what they can do on the blockchain while still taking advantage of the benefit of the decentralized ecosystem.
Advantages
- By combining private and public blockchain components with Corda’s smart contract technology, all of the characteristics of public blockchain can be combined with the control and management features needed in an enterprise setting.
- Corda has a pluggable consensus engine, enabling organizations to choose their preferred consensus algorithm. This is especially important for enterprises that have internal policies around who gets to decide which transactions are included on the ledger.
- Corda also supports interoperability, meaning that it can work with other blockchains such as Bitcoin.
Consortium Blockchain
A consortium blockchain is one where blockchains are not combined but work in isolation from each other. They are each maintained by separate organizations. There are advantages and disadvantages to consortium blockchains, depending on various factors, including the size of the organization and if there is any legal/government oversight over them.
Advantage
- The major advantage of a consortium blockchain is that it is flexible. Since each organization can maintain its chain, it can operate the chain whatever makes sense for that organization. This gives users the most control over their data and does not require them to work with organizations from other industries where there may be an inherent lack of trust between business partners.
