Introduction

There is currently a lot of demand for the adoption of blockchain due to its recent surge in popularity. But do all businesses embracing blockchain technology share the same needs?

Of course, the answer is no! Every business has unique needs that necessitate using a different form of blockchain. Types of blockchain are various iterations of the technology with unique properties. We will examine and comprehend these various blockchains in this blog. A decentralized database shared by computer network nodes is known as a blockchain. Here are a few details about blockchain.

1.Blockchain cloud services make it simple to gather, combine, and exchange transactional data from various sources.

2.Common blocks of data are separated into and connected by cryptographic hashes as unique IDs.

3.The blockchain uses a single source of truth to prevent data duplication and boost security, ensuring data integrity.

4.In a blockchain system, fraud, and data tampering are prevented since data cannot be modified without the consent of the parties nodes.

Why Do We Need Various Blockchain Types?

1.To conduct business or send data over a secure network.

2.On the other hand, the application of blockchain and distributed ledger networks varies depending on the situation.

3.For instance, blockchain and DLT technology are used to conduct transactions involving the digital currency Bitcoin.

4.This type of blockchain network is a public network since anyone from anywhere in the globe can join, verify other nodes, and exchange bitcoins.

5. But let's say a bank is using a private blockchain network.

6.The bank will only grant authorized users access to the password-protected network. Therefore, access to bank information is restricted to the local network.

Similar to these circumstances, the blockchain network can be set up in a variety of ways depending on usage and requirements.

1. Benefits of a public blockchain

Trustworthy: Since the proof-of-work procedure ensures that no fraudulent transactions take place, public blockchain nodes are not necessary to be acquainted with or to have a high degree of mutual trust.

Safe: A public network is one that permits the addition of any number of users or nodes. The more records that are dispersed throughout a network, the more challenging it is for hackers to compromise the entire system.
Transparency & Openness: The information is visible to every member node of a public blockchain.

Disadvantages:

Negative aspects of public blockchains with lower TPS On a public blockchain, there are incredibly few transactions every second. This is as a result of the network's size and the fact that numerous nodes are required for proof-of-work and transaction verification.
Issues with scaling Transaction processing and completion take time. Scaling is endangered. Since the network will sluggishly grow as we try to expand it, high energy demand The proof-of-work device is costly and energy-intensive. Without a doubt, energy-efficient consensus procedures will require technological development.

Scalability:
Your private blockchain's size can be customized to fit your unique needs. As a result, private blockchains are especially scalable since they let businesses quickly expand or contract the size of their network. Applications for Public Blockchain Voting:
To encourage transparency and confidence, governments can vote on a public blockchain.
Fundraising: Organizations and projects can increase trust and transparency by embracing the open blockchain.

2. Private blockchain

1.A blockchain network is managed by a single person and runs in a confined or private environment.

2.Despite being considerably smaller in size, this blockchain has the same peer-to-peer connection and decentralization as a public blockchain network.

3.They typically operate within a corporation or group on a local network rather than being accessible to anybody who wants to donate computing power.

4.Other names for blockchains include permission and enterprise blockchains.

Advantages of a private blockchain

Speed: Blockchain private transactions go more quickly. The reason for this is a private network.

3.Hybrid Blockchain

1.A hybrid blockchain, which incorporates the advantages of both private and public blockchains, is used by businesses that want the best of both worlds.

Businesses can choose which Blockchain data is available to whom and what data is made public by creating both a private, permission-based system and a public, permissionless system.

3.Transactions and records in a hybrid blockchain are normally private, but access can be granted through a smart contract if verification is required.

The advantages of Hybrid Blockchain Secure include the following:

1.Due to the constrained environment in which Hybrid Blockchain functions, hackers from the outside are unable to attack the network using a 51 percent attack.

2.Cost-effective: It maintains anonymity while allowing third-party interaction. They are faster and less expensive for transactions, and they scale better than a public blockchain network.

Final Words

The best blockchain to utilize is a complex subject with no easy solution because each blockchain offers a distinct set of benefits. But take into account your needs to ensure that your decision is wise.