Types of Blockchain — Public, Private, and Consortium Blockchain - PowerPoint PPT Presentation

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Types of Blockchain — Public, Private, and Consortium Blockchain

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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 – PowerPoint PPT presentation

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Title: Types of Blockchain — Public, Private, and Consortium Blockchain


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Types of Blockchain Public, Private, and
Consortium Blockchain
blockchainexpert.uk
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  • INTRODUCTION

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
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  • 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 its 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
    someones 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.

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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. Isnt interesting??
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Second and most talked about kind of blockchain
The Private Blockchain As the word defines, the
private blockchain is kept private within the
community and requires permission to access. The
private blockchain moreover functions like a
private property of an individual or an
organization to perform specific job function
defined by them. Unlike public blockchain, in
private, there is an authorized or in charge who
looks after the communication within the network
and one cannot join the private blockchain
network unless he is a permissioned user. The
participant should be invited from the side of
network administrators to conduct validations and
perform transactions. And he will be responsible
for giving access to read or write within the
network. The consensus is drawn on the whims of
central in-charge of the network. For this
reason, a private blockchain is always advocated
for business organizations. It works well for the
companies who are interested in carrying their
particular functions under blockchain technology.
But often seen that the comfort zone with respect
to the level of control is low when compared with
public blockchain.
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Secondly, under private blockchain, though read
permissions are kept public, write permission is
kept centralized to one particular
organization. If you ask for the examples in
private blockchain, one can give you Bank chain,
MONAX or Multichain as the examples. Service
functions integral to a single company like
database management, auditing, can be
successfully managed under private blockchain.
One of the premier advantages of private
blockchain is that it helps in forming the groups
and participants to verify transactions
internally, complying better with governmental
data security and privacy regulations. Just like
recounted for public blockchains, reduced
transaction cost, less data redundancy,
simplified data-handling, and automated
compliances are the implications when we talk
about private blockchains. The third type of
blockchain is Consortium or Federated
Blockchain A federated blockchain in other terms
called as consortium blockchain comes with mixed
properties from public and private blockchain
networks. One can classify the consortium
blockchain or the federated blockchain as
partially public and partially private. Under the
consortium network, the power of authority comes
semi- decentralized not residing to a single
authority.
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Often, a federated blockchain is operative under
a group and they are responsible to shed
restrictions on users reading, writing and
auditing rights. Under consortium blockchain only
trusted nodes are acquainted with the
responsibility of executing consensus
protocol. Unlike public blockchain network,
consortium network doesnt invite anybody with
the internet connection to participate in the
network. It again demands the permission from
network admins. Federated blockchain is mainly
applied in the banking sector for its fast speed,
supreme scalability, and better transaction
privacies. R3, EWF are examples of federated
blockchains. In short, if take into study all
three types of the blockchain, each defines a
different set of characteristics benefiting
business industries in large. Depending on the
different uses cases, one can wisely choose the
type of blockchain networks for their business
industry. If your business look for an open or
permissionless network, you have the option of
going for a public blockchain network. On the
other hand if the business look for a
permissioned and censorship network, well they
have the options to choose among consortium or
private blockchain.
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Click here to read more about Types of
Blockchain Public, Private, and Consortium
Blockchain
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