Blockchain is a secure procedure of information storage that hinders the manipulation of any such information recorded on the system.
It involves a digital ledger with a duplicate of every transaction carried out on the system, distributed across every end of the system.
Upon the occurrence of a new transaction, the record of such a transaction is duplicated across the blockchain system for every storage space.
The distributed storage spaces are known as a decentralized database system, which helps in making it hard to manipulate the stored data.
The distributed ledger system ensures every detail of transaction is recorded in the several storage spaces along the same time.
Blockchain networks are infrastructures put in place that make available ledgers and smart contract services to unique applications.
The operation of these infrastructures brings to existence the different types of blockchain, which are explained below:
Public blockchain exists essentially for the purpose of mining and exchanging cryptocurrencies.
We can easily have individuals interact with public blockchain on a daily basis. It is open to anyone who has access to the internet with a permission to access a platform powered by blockchain.
When the user is being granted access to this platform, a node on the platform represents individual users authorized on the platform.
Every authorized user has access to the current and past records of transactions carried out on the system and can take part in mining projects of the blockchain.
Public blockchains can be trusted and are secured, as they are being used daily by millions of users in the cryptocurrency space, even though they still consume lots of energy.
Private blockchain is mostly used in voting activities and supply chain activities, digital identification, and asset ownership.
The security of the private blockchain system is in the hands of the organization managing the blockchain.
A private blockchain always has a restricted number of users which is authorized by the managing organization of the blockchain. Not everyone has access to a private blockchain network.
A private blockchain is more like a closed network system with an authorization for any authentication or access to the network system.
Private blockchain networks have a record of great speed. Due to the few authorized users of the blockchain network, there are few available nodes on the blockchain.
In case of any access on security flaws, the nodes could be hacked easily, as they are few in number.
Private blockchain helps in providing solution to corporate software solutions.
Consortium blockchain exists where two or more organizations manage a blockchain network together.
This type of blockchain is mostly seen in financial organizations or government agencies, and a few private companies.
While we can have everyone access a public blockchain and a few organizational members access a private blockchain, the consortium blockchain can be seen as half-private and half-public with a manageable closed user group across several organizations.
A hybrid blockchain is the combination of an access authorization system and an open access system.
Hybrid blockchain systems tend to combine the operation of a public blockchain system and a private blockchain system.
It can help control access to stored data by individual users. Not all data on the hybrid blockchain can be seen by every user, though some could be accessed publicly.
You need to gain understanding of the working process of public and private blockchains to accurately understand a hybrid blockchain.
One good thing about hybrid blockchain is its ability to work perfectly in a closed system. There won’t be any need for organizations to be worried about losing confidential information, as the hybrid blockchain tends to secure that aspect of the organizational need.
We can see hybrid blockchain is introduced in the technology of the Internet of Things (IoT), due to its private and public integration.
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