Blockchain is a distributed ledger its main purpose is to record data in a verifiable and permanent way.

The first work on blockchain was in 1991 by Stuart Haber and W. Scott Stornetta they intend to implement a system where documents’ timestamps could not be tampered with or backdated.

Then the first blockchain was implemented in a cryptocurrency called Bitcoin created by Satoshi Nakamoto in 2008 Bitcoin has become one of the popular cryptocurrency, that also highlighted blockchain.

From then possibilities of implementing blockchain to other areas started by many projects but Ethereum changed the way of looking cryptocurrencies and blockchain by introducing Smart Contract concept.

Now blockchain not only serves the cryptocurrencies, there are many governments and private companies also utilizing blockchain and exploring its benefits.

That’s why we divided 3 Blockchain types.

1. Pubic Blockchain.
2. Private Blockchain.
3. Hybrid Blockchain

1. Public Blockchain

The name suggests that this is Public blockchain system, that means anybody can join and leave the blockchain, it is open to people.

Also, these types of blockchains are open and transparent, hence anyone can review anything at a given point of time on a public blockchain.

Here anyone can run full node by downloading the blockchain and start mining, anyone can make transactions on the blockchain, anyone can review/audit the blockchain in a Blockchain explorer.

Majority times public blockchain depend upon decentralized consensus mechanisms such as Proof Of Work (POW) that gives reward who participate in blockchain and secure access to the blockchain.

One downside of Public blockchain is, it consumes more computing power from nodes who actively involved in validating data they called as miners.

Bitcoin is the perfect example of Public Blockchain system. Bitcoin is open for everyone who have internet access, and it is secure from many attacks by having Proof Of Work mechanism.

Characteristics of Public Blockchain.

• Open to Public.
• Transparent.
• Secure.
• Power Consuming.

2. Private Blockchain

In private blockchain system blockchain is controlled by the private property of an individual or an organization.

Basically, we divide Private Blockchain into 2 types first one is Private Blockchain and another is Consortium Blockchain.

i) Private Blockchain

Private Blockchain is controlled by a single person or entity.

If you want to access Private Blockchain then, you have to have the permission from a person or entity who controls it.

These restrictions helps in simplifying the normal operations such as block creation and contingency model in Private Blockchain.

Private Blockchains have good speed, secure compared to the Public Blockchain system.

The best example for the Private Blockchain is a Private Company, the private company make use of blockchain for their database management or auditing and reviewing, here all the control of the blockchain is in the hand of that company.

Characteristics of Private Blockchain.

• Secure.
• High Speed.
• Restricted Access.

ii) Consortium Blockchain

In this type, instead of single ownership, a group is controlling the blockchain.

Here a group of companies or representative individuals coming together and making decisions for the best benefit of the whole network.

For example, if a blockchain belongs to 6 Banks only those 6 banks have the authority to access that blockchain. Add any data to the block at least 4 banks have to sign that block to record data.

Consortium blockchain have the same charectoristics as Private blockchain that’s why we consider as it is a part of Private Blockchain system.

3. Hybrid Blockchain.

Hybrid Blockchain is a combination of both Public and Private blockchain system.

This blockchain is a combination of power and transparency from Public Blockchain and security, speed from Private blockchain system. That gives businesses significant flexibility to choose what data they want to make public and transparent and what data they want to keep private.

Hybrid Blockchain mechanism uses a permissioned consensus mechanism to validate blocks replacing wasteful energy-intensive mining.

Watch below video of XinFin.io for better understanding of Hybrid Blockchain system.

Conclusion.

Blockchain is still emerging technology it can be useful for many sectors.

Now many companies from different sectors want to utilize this technology for their benefits as soon as possible that’s why new benefits are emerging.

If the new benefit from different perceptive arises, we need to add that to this list as a blockchain another type.

This list is updating as a new type of blockchains are emerging, that is why make a sure visiting website frequently.

If you want to add any points, feel free to mention those in comments.

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