Types of Blockchain Networks
4 Types of Blockchain Networks That You Should KNow About
Image Source: FreeImages
The blockchain is an open, public ledger that can record transactions between two parties easily and efficiently. The technology is also becoming widely used in a number of other industries, including the fast-expanding world of digital currency. In recent months, we’ve seen several blockchain networks come into being. Some of these are still in their early days, while others have already been around for some time. In this article, we’ll explore four of the most common types of blockchain networks.
Understanding Blockchain Technology: Decentralized Network
A decentralized network is one in which there is no central authority that oversees or regulates the operation of the network. Rather, the operation of the network is managed by the computers on the network. These networks operate without a single, authoritative source of truth. This means that, in order for a transaction to be verified on a decentralized network, each computer on the network must have access to the same information, and be able to agree on the accuracy of that information.
Public Blockchain Network
A public blockchain network is open for anyone to join, and anyone can view the full history of all transactions on the network. However, no one has access to the details of all the transactions, and thus, no one knows the truth behind these transactions. Because everyone can join, there is no central authority or “owner” of the data. This means that the data can be shared and transferred freely, and that it can be verified by anyone.
Private Blockchain Network
A private blockchain network is controlled by one party, and is known as the “owner.” The owner can view all past transactions on the network, and make changes to the network’s data. However, only the owner has the ability to add, delete, or modify data. Because the network is controlled by the owner, the data is secure, and the owner is able to verify that the data is authentic and accurate.
Hybrid Blockchain Network
A hybrid blockchain network is a mix of the public and private blockchain networks. This makes the network a combination of both public and private networks, and allows the owner to view and control the data without having to join the public/private network mix. Because the network runs on top of both public and private blockchain systems, the data is accessible to everyone, but only the owner can see and control it.
Consortium Blockchain Network
A consortium blockchain network is made up of several blockchain networks under a single management system. This system is managed by the owners of the networks, and allows them to create a shared ledger that is connected across the entire network. Because the information is held in a single place, and there is a single source of truth, double-entry accounting is possible on the network. This makes the system efficient and transparent, because each transaction is recorded on the ledger, and a corresponding amount of money is removed from one account and transferred to another.
Next Steps: Courses to Join to Learn Blockchain Technology
With so many types of blockchain networks to choose from, it can be hard to know which one to join. Even more so if you aren’t sure where to start when it comes to learning about blockchain technology. That’s where courses like this one from Pixeltests, with a certification from IIT-M CEE come into play. This course provides a general overview of blockchain technology. It then goes on to cover cryptocurrencies like Bitcoin and Ethereum, as well as the distributed ledger technology that underlies them. Then, the course moves into a deep dive into blockchain technology, discussing specific applications and use cases that have been implemented in real-world industries. You can sign up for a free masterclass here.