What are the 4 different types of blockchain technology?

Introduction

The term "blockchain" is undoubtedly already recognizable to you if you've heard of blockchain technology. What, though, is a blockchain? How does it function? In this post, we'll explore the four major types of blockchains and their uses in business. We'll also talk about the benefits and downsides for businesses looking to adopt one or more of them.


block chain technology

Any form of the transaction can be recorded and stored on a blockchain, which is a distributed digital ledger.

A blockchain is a type of electronic ledger where any form of the transaction can be recorded and stored. It's distributed, meaning it's not stored in one place (like your bank), but rather across multiple computers around the world.

The most popular use case for blockchains is a cryptocurrency like Bitcoin or Ethereum—but blockchains can be used for many different things, including:

  • Management and verification of identities (e-commerce)
  • Monitoring products and services (supply chain management)

It acts as a record of data that's impossible to alter.

Blockchain is an unchangeable digital transactional ledger. It acts as a record of data that's impossible to alter. Data is stored in blocks, which contain pieces of information about each transaction that occurred earlier on the blockchain. This data is encrypted using strong cryptography and stored on multiple computers around the world—therefore making it difficult for anyone except those who have access to the entire system (and who are also very skilled) to tamper with or make changes to any given piece of information within it. Because if someone were able to do so, they could use their own personal computer power against all other people connected via networking software running on these same machines; thus creating havoc among computer systems worldwide!

That said: You may still see some people argue against this notion because they think "what if someone hacks into my account?" But don't worry—it won't happen!

Since it's decentralized, a blockchain reduces costs and mitigates risks while strengthening security and transparency.

  • A crucial element of blockchain technology is decentralization. It means that users can freely access and transact with each other without needing to rely on any central party.
  • Because it's decentralized, blockchain reduces costs and mitigates risks while strengthening security and transparency. This makes it an ideal solution for many industries where trust is paramount—like banking, healthcare, or government services like voting or taxation.

Any type of digital transaction can be recorded on the blockchain, but four major types are used most often by businesses.

As you might have guessed, there are four major types of blockchain technology: public, private, consortium, and hybrid.

Everyone can access public blockchains on the internet. Anyone can access them and make transactions using a cryptocurrency like Bitcoin (BTC). Private blockchains are limited only to certain members in a group—for example, your company's employees or customers—and they aren't available for public use because they're controlled by those users themselves. Consortium blockchains allow multiple organizations or companies to work together on one project or service but exclude outsiders from participating in their actions unless invited into the system through invitation codes sent out by each member entity within the group

Public blockchains are transparent, meaning anyone can view the contents of a public blockchain network.

Public blockchains are transparent, meaning anyone can view the contents of a public blockchain network. The term "public" refers to anyone who can access the blockchain network and view its contents. This is unlike private blockchains where only those with permission from an owner or creator have access to data on it.

The distributed ledger technology used by public blockchains makes them resilient against attacks because they're decentralized and distributed. A distributed ledger is essentially a database that's stored across multiple nodes rather than just one central location like in traditional databases (e.g., Google). This means there are no single points of failure—each node on your decentralized system keeps track of its own information independently without needing any external help or direction from others near it at all times!

Private blockchains require permission to view or add to the data on the ledger.

Private blockchains, also known as permission blockchains, are more secure and efficient than public ones. They have a single owner or group of owners who can view the ledger and add new blocks to it, but no one else can. In this way, private blockchains are more like a database than a social network—only those with specific permissions (like an accountant or lawyer) can access them.

Private blockchains offer several advantages over public blockchains: they're easier to scale; they're faster at transactions per second; they're less prone to censorship because there's only one point of failure in your system (the owner), and they don't require expensive hardware like full nodes do on public networks like Ethereum’s network where every computer needs its own copy of all transactions ever made across all users' accounts combined together into one large database called “the blockchain."

A consortium blockchain is managed by a group, allowing for greater control and efficiency over the verification process among members.

A consortium blockchain is managed by a group, allowing for greater control and efficiency over the verification process among members. The members are trusted to view transactions and add them to their own private copies of the ledger. This allows for a shared ledger that's distributed among multiple parties, but only one member can validate it at any given time. If you want to make changes to your copy of this shared ledger, you need permission from all other members before doing so—which means they have control over who gets access to their data and how much power they wield over it!

To ensure security among consortium members (and keep them honest), they must agree on which transactions are valid before adding them into their copy of the blockchain; otherwise, someone could manipulate others' records without anyone noticing until long after everyone else has updated theirs too late...

Hybrid blockchains combine elements from both public and private blockchains, bringing together the best features from each into one network.

Hybrid blockchains combine elements from both public and private blockchains, bringing together the best features from each into one network. These networks are more secure than public blockchains because they have more nodes (users) to verify transactions and prevent fraud. They’re also more efficient because they use a shared ledger of transactions that can be accessed by anyone in the network.

Hybrid blockchains also have some limitations, however: they may not work well with certain types of applications or users who want full control over their data on the blockchain. For example, Ethereum is used by developers to build smart contracts such as those found in ICOs but has no native programming language; if you want to write your own programs on Ethereum, you need to learn another platform's programming language like Solidity (which we'll cover later).

There are 4 different types of blockchains you can use depending on your business needs

There are four different types of blockchains you can use depending on your business needs.

  • Public blockchain: In this type, anyone can join and participate in a network as long as they have access to the necessary resources or know-how. However, it's important to note that private blockchains don't allow anyone outside the organization to access them; it's only those who are authorized by an organization that owns said private blockchain (or those who are invited) who will be able to use them at all times.
  • Consortium networks: There are two main types of consortia networks: federated and self-certifying ones. Federated networks require participants for      these groups' transactions to be validated by other members/participants within their own local community--this means there's less control over how much information each user gets about others' activity within those communities since everyone has different levels of knowledge about what might otherwise happen should someone try something shady like stealing money from another member who doesn't trust him/herself enough yet." Self Certifying" Consortia Networks work similarly but allow all users within any given community complete access regardless if they're partaking voluntarily or not"

Conclusion

We hope this article helped you understand more about blockchain technology and the different types of blockchains that are available.