Blockchain technology is also a distributed ledger and along with this it also stores transaction records with its nodes which is completely secure. For your records, the blockchain network has become very accessible to everyone. Its records are quite immutable, that is, it cannot be tampered with in any way. Blockchain technology helps make the existence of bitcoin and other cryptocurrencies possible in a secure way. To know more about bitcoin mining, you can visit the official website from where you can clear your all doubts.
However, the use of blockchain is not just restricted to supporting cryptocurrencies. It performs a wide range of tasks in several industries, and different fields including retail, government, healthcare, and supply chain management. There are various versions of blockchain, each with a distinct goal and method of problem-solving, to serve these various areas. Before creating blockchain solutions for their needs, every organisation should be aware of the types of blockchain structures that will be covered in this blog.
Private Blockchain — Private blockchains are permitted and constrained in contrast to public blockchains. In most cases, one group has control over them. Private blockchains, also known as closed networks, are privately held by a business or other organization that wants to utilise them for internal use. In this type of blockchain structure, nodes are chosen by a centralised authority rather than the community at large. Additionally, not every node in the network may have full access to all network functionalities. Due to limited network accessibility, blockchain structures are only partially decentralised. However, it offers characteristics like transparency, security and trust, to pick a Coparcenary over the network.
Pros — The company can define access controls, authorizations, and permission levels utilising a private blockchain. It can restrict access to its data by outside parties.
Public Blockchain — The best and most popular type of blockchain technology is considered to be the public blockchain. It is the kind of infrastructure that supports bitcoin, litecoin and other cryptocurrencies. A public blockchain also known as DLT allows every single person to participate in it and transact with it securely. Data in distributed ledger technology (DLT) is spread over P2P networks rather than being held centrally. Since all blockchain nodes have the same access rights to data, the ability to validate data, and the ability to add new blocks, public blockchains are entirely decentralised. They cannot, however, take the place of trustworthy network transactions. The blockchains in question are therefore permissionless. A public blockchain network is accessible to everyone with an internet connection, and anybody can join as an authorised node. The most recent records will be available to all authorised users. By resolving cryptographic equations, they can mine new coins and produce fresh transactional blocks.
Pros — A public blockchain’s complete independence from any centralised authorities or groups is one of its key advantages. Since everybody on the network has access to the data, they are transparent.
Hybrid blockchains are the answer for one of the best organizations. When it comes to hybrid blockchain, combines elements such as private and public blockchains. Both permissioned and non-permissioned systems can be installed concurrently by organisations. They can decide whether information should be accessible to the general public and establish access restrictions for certain individuals to the information stored on the blockchain. On a hybrid blockchain, transactions are private and may, if necessary, be verified to utilize smart contracts. Other kinds of private data are typically retained inside the network. The hybrid blockchain is owned by a private organisation, but it is unable to change any transactions.
Pros — Due to the restricted ecosystem in which the network operates, hackers are unable to conduct 51% of attacks against it. They are also more scalable instead of a public blockchain and enable quick and low-price transactions.