What are the 4 Basic blockchain technology Types?

What are the 4 Basic blockchain technology

What are the 4 Basic blockchain technology Types?

Enterprises are now changing their blockchain projects into production, following Bitcoin’s rise as a first-generation blockchain technology.

According to Global Blockchain Survey 2021 by Deloitte, of 1,280 practitioners and senior executives in 10 locations. It is found that over the upcoming 24 months, digital assets, and their core blockchain techs, in their respective industries, are expected to be “very/to some extent crucial”. This is reported by nearly 80% of respondents.

You can, for specific use case, determine the most suitable blockchain network; for that, you must have the awareness of the four primary types— private, public, hybrid, and consortium blockchains. Each of these has pros/cons that are unique, making them better suited for particular uses.

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Private blockchain

Private blockchain

Private blockchains function in a restricted environment, entirely separate from open networks, and are typically governed by a single entity. While they share similarities with public blockchains in using peer-to-peer connections and decentralization, private blockchains function on a smaller scale. Instead of allowing universal participation and computing power contribution, these blockchains are generally confined to a specific company or organization. They are also referred to as permissioned blockchains or company blockchains.

The controlling company performs a crucial role in private blockchains, defining permission levels, security measures, authorizations, and accessibility. For instance, in a private blockchain network, the company can determine which nodes can view, add, or modify data while stopping third-party entry to specific information.

Private blockchains are often likened to an intranet, in distinction to the internet-like nature of public blockchains, as explained by Godefroy. Due to their limited size, private blockchains exhibit extraordinary speed and can process transactions much more rapidly than their public counterparts.

Yet, private blockchains have downsides, combining the contentious notion that they may not be genuine, as decentralization is a basic blockchain principle. Achieving complete trust in the data can be more challenging, as centralized nodes dictate validity. The limited quantity of nodes also poses security risks, as a few rogue nodes can compromise the consensus mechanism.

Moreover, private blockchains often feature proprietary and closed-source code, which hinders independent auditing and confirmation, thereby diminishing security. Anonymity is virtually nonexistent on a private blockchain.

Private blockchains find their niche when cryptographic security is required, but the controlling entity wants to limit public entry to the information. They are well-suited for scenarios where organizations wish to use blockchain technology while safeguarding their rival advantages. Applications integrate trade secret management, auditing, supply chain management, asset ownership, and internal voting.

Public blockchain

Public blockchain

A public blockchain, the initial kind of blockchain technology, is where cryptocurrencies like Bitcoin emerged. It is prove to be a main aspect in promoting distributed ledger technology (DLT). It eradicates the obstacles linked with centralization, providing enhanced security and transparency. Unlike traditional data storage, DLT disperses data across a peer-to-peer network.

You can guarantee data genuineness in its decentralized environment; public blockchains depend on consensus algorithms. Proof of stake (PoS) and Proof of work (PoW) are two extensively adopted consensus techniques for participants to agree on the ledger’s present state.

Public blockchains are open and permission-less, allowing anyone with internet entry to turn into an authorized node on the network. Users can enter either present or historical records and interact in mining activities, involving intricate computations for transaction verification and ledger updating. Data on the network is immutable, and the openness stretches to anyone’s ability to confirm transactions, recognize vulnerabilities, or propose code changes due to the standard open-source nature.

One notable benefit of public blockchains is their independence from specific organizations. Even if the founding company ceases to exist, the public blockchain can continue operating if there are linked computers.

James Godefroy says that users may be incentivized to dedicate computing power to network security through rewards. At Rouse, he is a senior manager. Rouse is a provider of an intellectual property services.

Moreover, public blockchains offer openness within the network when users adhere to security protocols and techniques diligently.

Nonetheless, there are disadvantages to public blockchains. They may exhibit slower network speeds, and entry restrictions are not possible.

Godefroy says that if hackers, in a public blockchain network, can attain 51% or even more of the computing power, they can alone manipulate it.

Another difficulty is scalability; as more nodes join the network, it tends to slow down.

Public blockchains find ordinary utilization in cryptocurrency mining and exchange, like Bitcoin. They are also suitable, with an auditable chain of custody, in creating immutable records, such as public property ownership records and electronic notarization of affidavits.

This blockchain kind is well-suited explicitly for organizations built on principles of openness and trust, like social help teams or non-governmental organizations. Conversely, private companies may prefer to evade public blockchains due to their publicly reachable nature.

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Hybrid blockchain

Hybrid blockchain

Hybrid blockchain, a form of blockchain technology, is employed when organizations seek to merge aspects of either private or public blockchains. Alongside a public permission-less system, This technique allows developing a private, permission-based system, affording precise control over data inclusivity and public disclosure.

Records  and transactions, in a hybrid blockchain,  are normally unreachable to public but when required, theycan be verified, often facilitated through smart contracts. This design maintains confidentiality while allowing for validation. Even, it cannot alter transactions, when a private entity administers the hybrid blockchain.

Upon joining a hybrid blockchain, users enjoy full network access, with their identities concealed from different unless they initiate a transaction, at which point their recognition is disclosed to the counterparty.

Hybrid blockchains offer several advantages. They function within a closed ecosystem, thwarting external hackers from launching a 51% attack. Privacy is upheld, while engagements with third parties are possible. Transactions are efficient and cost-effective, and the network boasts superior scalability compared to public blockchains.

Nonetheless, hybrid blockchains have their drawbacks. They may not offer finish openness due to data shielding. Upgrading the system can pose challenges, and users may absence rewards for engaged participation or contributions to the network.

Hybrid blockchain finds application in numerous domains. For instance, in the genuine estate sector, companies can utilize it to oversee systems privately while selectively disclosing certain information, like property listings, to the public. Retail companies can streamline their operations with hybrid blockchain, and highly regulated industries like financial services can derive benefits from its implementation.

Godefroy says that in a hybrid blockchain, medical records can be safely stored. These records remain inaccessible to unauthorized third parties, but users can retrieve their data through smart contracts. Governments can also harness hybrid blockchain for the confidential preservation of citizen data while facilitating protected data sharing between institutions.

Consortium blockchain

Consortium blockchain

The fourth category of blockchain, recognized as consortium blockchain or federated blockchain, shares similarities with a hybrid blockchain by combining aspects of either private or public blockchains. However, it differs in that it nurtures cooperation between several organizational members within a decentralized network. A consortium blockchain is a form of private blockchain with restricted access, removing the risks linked with a single entity controlling the entire network in a private blockchain.

In a consortium blockchain, predetermined nodes oversee the consensus procedures. It features a validator node responsible for initiating, receiving, and validating transactions, while member nodes can either initiate or receive transactions.

Consortium blockchains offer several advantages. They tend to be more secure, scalable, and efficient compared to public blockchain networks while also providing entry controls akin to private and hybrid blockchains.

However, consortium blockchains exhibit less openness compared to public blockchains. They can still be compromised if a member node’s security is breached, and the network’s functionality can be hindered by its regulations.

This blockchain finds applications in numerous sectors, like banking and payments, where different banks can form a consortium to select which nodes validate transactions collectively. Research organizations and entities tracking food delivery chains can also perform consortium blockchain models, making it well-suited for applications in delivery chains, specifically in food and medicine.


While these are the four primary kinds of blockchain, it’s crucial to think, when establishing a network, about consensus algorithms.

Besides PoS and PoW, people strategizing to build up a blockchain network ought to explore numerous algorithms that exist on different platforms, like Burstcoin and Waves. For instance, leased proof of stake enables users, without needing the node itself, to gain income from mining to interact in mining. Proof of work employs, to assign importance to each user, either balance or transaction history.

Ultimately, blockchain technology is achieving growing acclaim and strong company support. Each of these blockchain kinds comes with possible applications while making stronger transaction records, which enhances trust and openness.

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