There are so many types of Blockchain in the world, but what does that mean? Blockchain technology refers to a digitized ledger system that enables transactions worldwide over synchronized computer systems and soft wares. It is designed to allow for honest sharing of business information under high-security management and within a short time at an affordable cost. Each transaction in the digital Ledger can only be authorized with the digital signature of the owner. The signature authenticates each transaction and prevents the transaction from being corrupted. The system establishes direct contact between the two parties sharing the information.
This direct contact eliminates the need for middle parties such as banks who join these parties, providing trust certifications for each at an agreed cost. A single ledger on the authenticated transaction then made available and accessible by peer members of the chain. Despite this Ledger being public, however, it is not possible to corrupt it in whatsoever way. Blockchain technology is applicable in many fields ranging from banking, health, drug tracking, and the food industry.
Let’s talk about blockchain theory. Many businesses worldwide are attempting to incorporate blockchain technology into their systems. This sudden rise in blockchain systems raises the question of how exactly does this blockchain technology work? Blockchain systems made up of three central interconnected technological systems; cryptographic keys, computing and storage mechanisms for transaction records, and a peer-to-peer networking system for communication and ledger sharing purposes. The cryptography keys are either public or private, and they enable transactions to occur between the two concerned parties. Each party involved uses these two keys to produce secure digital identity references, also known as digital signatures.
This digital identity is linked with a peer-to-peer network, affecting all individuals acting as authorities and who use the identity to arrive at a consensus regarding the transaction. Once these authorities authorize the transaction, the computing and storage system assesses the deal’s feasibility by conducting a mathematical verification and certifying the agreement. The blockchain system works in steps; a person requests the desired transaction. The transaction broadcasted into a P2P network using nodes. Finally, the nodes’ network validates the transaction using relevant algorithms. The complete block of marketing is then added to the existing blockchain permanently.
Private vs Public Blockchain
There are various types of blockchain in the market. The main types of blockchain are private vs public blockchain. A public blockchain refers to a blockchain network that allows anyone to join whenever they want. A public blockchain does not have restrictions in its participatory guidelines. This network allows all the members to see the Ledger and participate in the consensus process. Therefore, a public blockchain fully decentralized, and as the name suggests, it fully open to the public. It was the first blockchain network to be established and owes its foundation to Bitcoin technologies.
All public blockchain participants have equal rights regardless of their positions or investment and can join participate in consensus and transact with their friends as they please. public blockchain companies maintain high-security levels. The Ledger made visible to all, thus encouraging transparency. On the negative side, public blockchains usually slower, and they infested with fraud due to their anonymous nature. Benefits associated with public blockchains include; a high-security profile aimed at securing a large amount of data within the blockchain, an open transaction environment for all, and the anonymous nature provided that maintains confidentiality. Public blockchains are also immutable; once information gets into the blockchain, it is impossible to tamper with it.
Private Blockchain Technology
On the other hand, a private blockchain refers to blockchain technology where one organization or company has full control over the network. This design implies that a private blockchain is not open for any public member to join at will. There exists a form governing system private blockchain that assesses and identifies people allowed into the blockchain. Personal blockchain systems built on trust, and without it, they cannot survive. Only officials within the private blockchain can access its systems, and therefore one needs trust to transact within such platforms.
The credibility of the remote blockchain systems primarily built on the credibility and dignity of the workers. This fact depicts that personal blockchain systems not decentralized, and all the nodes must abide by the set rules to ensure the blockchain system inflows properly. It is primarily assumed that the private blockchain system’s governing authorities can manipulate the transaction whenever they like to, which is not always the case. The companies obligated to maintain transparency to keep up with competition since leaks of little inclinations can lead to unhealthy competition.
Benefits associated with private blockchain systems include high efficiency due to the small number of people involved. We offer full privacy terms, which is perfect for a transaction, and they are stable since their prices remain relatively steady compared to public blockchain systems. The transaction fees in private blockchain systems are also low and save money. Also, illegal activities rarely occur within the jurisdiction of a private blockchain system.
Public Blockchain Examples
What are public blockchain examples? An example of a public blockchain system is OpenChain. Coinprism created this blockchain platform as an experimentation fantasy system for many companies. Members can track transactions using their ledgers. Ethereum is also a public blocking system that offers developers a platform to discover the various benefits of open source and distributed computing. Other examples of public blockchain systems are; Ripple, Corda, IOTA, and EOS.
Private Blockchain Examples
Let’s talk about private blockchain examples. Collab is among the most famous private blockchain systems. It has about 50 million active users and has partnered with more than 500 enterprises, including Mercedes-Benz and Cambridge. Another example of a private blockchain system is Ubisoft, a trusted consulting company but deals with technological artificial intelligence and blockchain solutions. Other examples are; Talentica Software, ELEKS, Adoriasoft, and Idealogic.
So there are two types of blockchain. The rise of cryptocurrency has led to the development of numerous blockchain systems worldwide. A blockchain system provides a platform for members to meet and transact online without having to meet necessarily. Most blockchain systems decentralized, accessible by many people, and well secured to prevent data tampering. Blockchain systems are majorly classified into private and public blockchains. Private blockchains have limited and controlled access, while public blockchains are open for anyone to join.