What Are the Four Kinds of Blockchains?
Four main kinds of technology are used in the cryptocurrency, NFT, and Web3 sectors.
Benefits of blockchain
As cryptocurrencies rely on blockchain technology in order to exist, blockchain and cryptocurrencies are often associated by definition. The blockchain technology underpinning crypto offers many benefits, including the following:
- Cost reduction
Four kinds of blockchain
A public Blockchain is permissionless, meaning it is fully decentralized and anyone can use it. An internet connection enables users to connect to the blockchain, download it, and join it as authorized nodes. The blockchain network is open and accessible to all nodes.
The term “private blockchain” refers to a blockchain in which only certain people are allowed to participate. Blockchains of this type are controlled by a company or organization, which determines who has access to them and enables permissioned users to write and read. Private blockchains generally have a smaller size because they are restricted environments. Thus, a private blockchain operates within the network of its controlling entity.
It is a type of blockchain network that combines the features of both public and private blockchains. The blockchain network is handled by one entity. Organizations can control who can access specific data stored in the blockchain and what data will be available to the public.
Compared to a private blockchain, a consortium blockchain or federated blockchain is more decentralized. Unlike the hybrid blockchain with one controlling entity, a consortium blockchain is developed by a group of multiple entities that want to use a decentralized network to collaborate. Blockchain network access is restricted to consortium members.
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