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What are the 4 different types of blockchain technology?

Blockchain technology

Blockchain technology is a distributed ledger that allows data to be shared in the business environment. Blockchain is a system that stores data in blocks on a chain.

1. Public Blockchain

Public blockchains are open systems for anyone to access, process, and verify transactions. Blockchain Technology has a high level of transparency and security, as it allows you to see the full history of changes, and the security system can be extended with features for instance, evidence of stake (PoS), or proof-of-work (PoW). . . . ). Bitcoin and Ethereum are well-known examples of blockchains that support peer-to-peer transactions and various decentralized applications (dApps).

Applications
● Cryptocurrencies

Public blockchains have stabilized many cryptocurrencies by creating secure and transparent transactions without the need for intermediaries. Public blockchains like Bitcoin and Ethereum will act as platforms for currencies and digital assets. Users can tap into these segments by creating digital wallets to send, receive, and store currencies such as Bitcoin (BTC), Ether (ETH), and other tokens. Transactions are verified and recorded on the Blockchain using specialized systems such as Proof of Work (PoW) and Proof of Stake (PoS). It allows competitors to trade without intermediaries such as banks and lenders. It provides transparency, security and allows users to manage their money and trade globally without restrictions.

● Decentralized Finance (DeFi)

DeFi platforms use blockchain to provide financial services such as lending, lending, trading, and asset management. Smart contracts are based on a blockchain that can be managed independently of cash and contracts. Users can access DeFi services directly from their digital wallets without relying on traditional financial services. DeFi platforms provide financial services that provide users around the world with access to a wide range of financial products and services. Public networks support DeFi innovation and experimentation, allowing users to create new transaction-based financial instruments and transactions using open infrastructure and networks.

2. Private Blockchain

With restricted access to authorized users, private blockchains are ideal for managing transactions that require privacy and control. Unlike blockchains that rely on transactions, private blockchains use a set of rules that allow parties to choose transactions and execute contracts.

Applications

● Enterprise Solutions

There are blockchain Technology networks based on business needs and use cases. These private wallets enable secure and transparent communication between the organization or trusted partners, as well as day-to-day business operations. Businesses utilize private blockchains to track assets and manage internal procedures like supply chain management.

 Blockchain technology

3. Hybrid Blockchain

It is a cross between a public and private blockchain. One part is controlled by an organization and another part is presented as a public blockchain.

  • It is a combination of public and private blockchain.
  • They use both royalty-based and royalty-free systems.
  • Users can access the data through smart contracts.
  • Although the first company owns a hybrid blockchain. But you can’t change the transaction.

Advantage:

Ecosystem: Blockchain’s most valuable feature is its hybrid nature. Hacking is not possible because 51% of users cannot access the network.
Cost: Transactions are simple because only a few nodes confirm transactions. Not all nodes are checked. Therefore, the computational cost is low.
Architecture: Highly configurable while maintaining integrity, security and transparency.
Operations: You can choose the participants in the blockchain and decide who will publish them.

Disadvantages:

Efficiency: Not everyone can use hybrid blockchains, and organizations struggle with audit effectiveness.
Transparency: Some people can hide information from users. If someone wants to access a hybrid blockchain, it is up to the organization whether to offer it or not.
Ecosystem: Due to the closed environment, this blog does not encourage participation in the network.
Use Case: Delivering better healthcare solutions. Examples of hybrid blockchains include the Ripple network and the XRP token, where information from government agencies, real estate agents, and financial companies is publicly available but must be kept private.

4. Consortium Blockchain

A blockchain consortium is a type of blockchain network that is semi-decentralized and permissioned. This means that access to the network and participation in strengthening the dialogue will be limited to a predefined group of participants or organizations. Blockchain clusters are designed for use in applications that require trust and control between participants. But still with some advantages of blockchain technology such as transparency, immutability. And efficiency – unlike public restrictions that are open to everyone. Collective blockchains restrict access to a group of trusted individuals or organizations called members. Participants must obtain approval from the association’s board of directors to join the network and participate in strengthening the discussion. Blockchain Technology provides transparency between team members, allowing teams to see and verify transactions recorded on the blockchain.

Applications

● Clinical Trials Management in Healthcare

Pharmaceutical companies, research institutions, regulatory agencies and healthcare providers are collaborating on blockchain networks to share and manage clinical trial data. Includes information on participants, trial protocol, and test results. Modern contracts automate test management such as participant engagement. Informed consent and data sharing agreements improve clinical trial transparency Data integrity and compliance promote safe data sharing between stakeholders. It speeds up the validation process and increases the reliability of research results

● Cross-Border Supply Chain Finance

Banks, export/import companies, shipping companies and customs authorities will work together on the blockchain platform to define and improve the financial processes of the supply chain. Blockchain provides real-time visibility into transactions, including cash on delivery, invoicing, financing and sales document management.

Transactions Automate the payment and settlement process. and lessen the chance of disagreements and fraud. Increasing transparency, efficiency and trust in cross-border financing. Reduce the paperwork, processing time and costs associated with traditional business financing. Improve trade finance and help expand international trade.

 

 

Blog By:- ExpertSadar

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