A blockchain network can be built in a variety of ways. They can be public, private, permissioned or constructed by a group of people called consortium. These networks are the backbone of every Blockchain Development Company, enabling secure, transparent, and decentralized systems for various applications.
Types of Blockchain Networks
Blockchain has been around for a while now. And while there are many enthusiasts who try to make a career in the field, only a few make it to a full-time role. Why? Because while many might grab some fundamental knowledge and start their journey, they lack a recognizable and one of the top blockchain certification training which is accredited by industry professionals under their name. Blockchain Development Services are in high demand as this technology can be classified into three categories. And as Blockchain Enhances Apps, its integration across various industries continues to grow, making certified expertise even more valuable.
There are Three Types of Blockchain
-
Public Blockchain
So our first blockchain is the public blockchain. This blockchain originated cryptocurrencies like bitcoin and helped to popularize DLT - (distributed ledger technology).
Public Blockchain is a non-restrictive and permissionless blockchain, which can be easily used by any user, any person connected to the Internet can complete their transactions using this platform.
Public blockchain is a fully decentralized platform that allows all types of users to join. If we talk about its use cases, then in the present time public blockchain is used for the transaction and mining of cryptocurrency.
Examples: Bitcoin and Ethereum.
Blockchain Solutions based on public blockchain are often used in DeFi projects and crypto platforms due to their open and transparent nature.
-
Private Blockchain
Private Blockchain or Permission Blockchain Institution is fully allowed who can and who cannot access this Blockchain. It remains a fully secured network. Only those users of the data network of this Blockchain can access those who have its permission.
Each of its nodes is controlled by the central authority and can decide which nodes it will install. Private Blockchains are only partially decentralized and access to this blockchain as a public is restricted.
Examples:
1. Oracle blockchain is a private blockchain.
2. Ripple and Hyperledger also come in this.
3. Organizations often rely on a Private Blockchain Development Company to build secure and permissioned networks for internal business processes.
-
Consortium Blockchain
Consortium Blockchain, also known as federated blockchain, is primarily a combination of public blockchain and private blockchain where multiple organizational groups come together to share a decentralized network such a single entity.Here the central control rests with an organizational group rather than a single one, so that it is secure, being more decentralized in comparison to private blockchains.
The process of Consortium Blockchain Network is quite complex as it requires mutual co-operation and transparency of all the organizations which is important to deal with the logistical challenges and risks.
Examples: Hyperledger
Consortium networks are ideal Blockchain Solutions for industries where trust is distributed among several stakeholders, such as banking, supply chain, and healthcare.