Magnimind Academy

What are the different Blockchain technologies?

The blockchain technology, invented by Satoshi Nakamoto, has evolved into one of the most disrupting technologies and created a new type of internet. In simple words, a blockchain is a time-stamped series that contains immutable records of data which is maintained through a chain of computers. The information kept here is open and anyone can see it. Thus, everything created on the blockchain is transparent and everybody involved remains accountable for his/her actions. If you’re interested in learning this technology, here’s an overview of different types of blockchain technologies that would make your learning path a tad easier.

Types of blockchain technologies

Originally created for the digital currency Bitcoin, the blockchain technology has now opened up a new era for the tech community with its lots of other potential uses. Major blockchain technologies are distributed into three categories – private blockchain, public blockchain, and hybrid blockchain. Let’s have a detailed look at each of them.

1- Private blockchain

These are permissioned blockchains that don’t let any user to join the network freely and read/write to the ledger. It comes with an access control mechanism that remains between the users’ list connected to the network. Private blockchain is widely popular among companies that are likely to record transactions securely and interchange critical information between one another. It’s important to note that in this type of blockhains everyone is aware of the users’ identity but only those with appropriate permission can see the transactions. Additionally, as the consensus process doesn’t involve every user, a private blockchain offers higher throughput than a public blockchain.

2- Public blockchain

This is an open-source blockchain and allows everyone to participate as users, developers, miners, or community members. All transactions taking place on this blockchain remain fully transparent, which means anybody can review the transaction details. These blockchains are designed to be completely decentralized, which means transactions that are being recorded in the blockchain or their processing orders can’t be controlled by any single entity or individual. A public blockchain offers anonymity that promotes users’ privacy. A user isn’t supposed to disclose any type of personal information before submitting smart contracts and transactions.

3- Hybrid blockchain

You can think of a hybrid blockchain as a unique type of blockchain that attempts to utilize the best parts of both public and private blockchain solutions. The biggest distinguishable feature of this blockchain is that this isn’t open to everybody but still comes with major characteristics like transparency, security, and integrity. Here, the members can decide which transactions are to be made public or who can join the blockchain. This enables organizations to work with their stakeholders in the best way possible.

Final Words

The blockchain technology has dramatically improved the fidelity and confidence between parties involved in a blockchain, while breaking down the workflow. The job market in this field, ranging from established organizations to startups, looks bright for blockchain enthusiasts and we can expect it to grow exponentially in the next few years. So, if you’re looking for a field that would help you kick-start your tech career, you can think of learning the blockchain technology.

.   .   .

To learn about blockchain, click here and read our another article.