We hope that you got an articulate idea about What are the Different blockchain Technology and their utilities through the article.
This article reflects on the subject of Blockchain. It is a technology that makes the complicated process of recording transactions and tracking assets within a business network much more convenient.
Are you interested in learning more about blockchain technology and What are the Different blockchain Technology Keep reading the article to find out more about blockchain technology?
What is the different blockchain technology?
There are four main types of Blockchain Technology. They are,
- Public Blockchain
- Private Blockchain
- Hybrid Blockchain
- Consortium Blockchain
Each type of these What are the Different blockchain Technology have their benefits, disadvantages, as well as ideal use.
How does Blockchain Technology work?
A Blockchain network is a combination of three leading technologies. They are,
- Cryptographic keys.
- A peer-to-peer network that has a shared distributed network ledger.
- A means of computing, to keep the information of transactions and records on network nodes.
Cryptographic keys consist of two different types of keys, private and public. These keys help in conducting a successful transaction between two different parties. These keys are used to create a secure digital identity reference. These keys are referred to as “digital signature” in the world of cryptocurrency, and it is used for authorizing and controlling transactions. Here is a detailed overview on What are the Different blockchain Technology.
Public Blockchain
The first known Blockchain is the public Blockchain. This is where the concept of cryptocurrency first came into existence, and eventually, it popularized the whole distributed ledger technology. It doesn’t store the information in a particular storage unit, instead, it distributes the information to different network nodes.
Private Blockchain
It operates on a closed network and it is best for private organizations to store their records of information. Furthermore, only a single entity possesses the authority to manage private Blockchain. This results in utmost security over the information and database.
Hybrid Blockchain
As the name suggests itself, Hybrid Blockchain is the compilation of both public and private Blockchain networks. It provides the organization to have liberty over the database on what should be accessible and what should remain hidden from public use. The advantage of this Blockchain is that it operates within a closed network, hybrid Blockchain is hard to hack. It is used to keep confidential information of a particular company hidden from the public. In contrast, listings and other information are available to access for the public entities, which makes it a nontransparent Blockchain network.
Consortium Blockchain
It is a Blockchain network, just like a hybrid Blockchain. Still, it allows multiple individuals to have access to this Blockchain, eliminating the risk that involves one entity handling the blockchain network. It is more secure, scal able, and efficient than a public Blockchain network. Like a private blockchain network, it also offers access control. It has the disadvantage of getting compromised if a single entity has been breached. However, it is effective to use in banking and financial services. It is an ideal technology for supply chain management companies.
Conclusion
Ultimately, blockchain technology has gained more Popularity among different sectors. Having the potential to open up its door to new opportunities Blockchain technologies are gaining rapid support from many known enterprises.
Also Read :- Bitcoin Ecosystem: Technology That Users Should Know