Types of Blockchain — Public, Private, and Consortium Blockchain Compared

I think there is no more introduction needed for the term Blockchain, as the distributed ledger technology has already made its footprint in all major industries be it the government, trade, medical, education or real estate. The Blockchain has significantly showcased its extensiveness in laying solutions to the critical market problems like security, transparency, accountability, time consumption, cost and more. Every industry has witnessed the big play of blockchain in improving the efficiency and effectiveness of the industry function.

This blog brush off different types of blockchain and its implications in varied businesses. There exist different types of blockchain but let us focus on the three major types.

There are mainly three types of Blockchain:

a) Public Blockchain

b) Private Blockchain

c) Consortium or Federated Blockchain

To start with, let me introduce you to the first type of blockchain The Public Blockchain.

As the name defines, public blockchain is open to the public. It has no access restrictions and anybody powered with internet can conduct their transactions and perform their validations (execution of consensus protocol). Under public blockchain, no single authority is authorized to perform the action. Anybody can indulge in reading, writing or auditing within public blockchain. The public blockchain remains open to mass giving full vicinity of actions undertaken within.

So it’s obvious to question the credibility of a public blockchain. A question can come into your mind, how liable this kind of public blockchain is if no one is authorized or made in charge. How decisions are made? Questions pondering into someone’s mind is endless and the answer lies within the public blockchain.

Any decision making under public blockchain is executed through decentralized consensus mechanisms like proof of work (POW) and proof of stake (POS). There exist several living examples for public blockchain. The list includes Bitcoin, Ethereum, Monero, Dash, Litecoin, etc. Bitcoin technology introduced the concept blockchain among the tech community.

Here are the three things that account public blockchain.

(1)Anyone can download the code and start running a public node on their local device. They can thereby validate every transaction happening on the network and participate in the consensus process to validate the action. The public can freely determine which block to get added and what size should be.

(2) Anyone can transact in the network as long as they are valid.

(3) Using a block explorer anyone can access or read transactions.

The major implications of public blockchain in any business are that anybody can disrupt the business models. Also, it reduces the expenditure of running decentralized applications, as no server or system admins are demanded. Isn’t interesting??

Read more about Private and Public Blockchain

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