Blockchain technology is not a single decentralized ledger behind the working of cryptocurrencies like Bitcoin. It has different forms, which I am going to cover in this blog. If you are newly introduced to the decentralized currency world, then you might not be having enough ideas about blockchain and its importance. So let me begin with the introduction of this digital ledger. Besides updating your knowledge of different forms of blockchain, I would also let you know about BaaS, and why it is much common preference among developers and businesses.
Introducing Blockchain Technology
Knowledge of blockchain technology is important for every crypto enthusiast, especially when it comes to pursuing a career in it. The main objective of this digital ledger is to record every transaction that takes place between two individuals or groups properly and verifiable manner. To know it better, let me explain it more easily.
Open is a word that is attached to blockchain technology. But do you know what does this word indicates? If not sure, then let me explain it to you. The word open generally refers to the open-source code that is basic of all protocols of blockchain. The built-up of public and private chains is all because of open source code utility. Another term that is used for blockchain technology is distributed ledger. The reason why it is being called with latter terminology is that many participants on the blockchain have the access to share the recorded transactions on it. No one can monitor or own it individually.
When either party performs the transaction to others, it is structured more properly by blockchain technology. And as per the whitepaper, no third party or mediator like banks can have any influence on it. This leads to minimum pricing and curtailing abrasions. While discussing blockchain technology, you need to know about cryptography. It is the major factor behind the latter digital technique that functions in checking and confirmation of the records. After getting a brief introduction to blockchain technology, now let me upgrade your knowledge about its 4 different forms.
4 Different Forms Of Blockchain Technology
There are 3 main forms of blockchain. They do not comprise any usual databases or DLT (distributed ledger technology). So no need to get confused with the latter digital ledger. So let us begin with:
These are open-sourced blockchains where developers, users, miners can become part of it. In public blockchains, transaction details can be viewed publicly, as it is transparent. This form of blockchain is specially curated for being completely decentralized. No one has the authority to own or monitor it individually. No one can change the order in the way it is presented. Since public blockchains are transparent, means it is open for everyone to see the transaction details, it is free from any censorship. Anyone can become part of it, no matter which place or country he/she belongs to. In that way, it becomes very complex to close it down. There is always a token attached to public blockchains. It is mainly to reward those who participate in the network.
This is another form of blockchain technology. These are blockchains with permission, mainly known as private blockchains. They are different from public blockchains in terms of permission to become part of the network. Unlike public blockchains, transactions here are not public, but private. Those who got permission or in other words are a member of the network can access it. Another difference that sets private blockchains apart from public blockchains is it is being centralized.
Private blockchains are much inclined towards those businesses who are keen to work jointly but do not want their essential data to be shared publicly. These are centralized chains where the one who is operating the chain has full authority over those who are part of it. Compared to public blockchains, private blockchains don’t comprise any token.
Consortium blockchains are also like private blockchains, but there is a slight difference between the two. Compared to private blockchains, consortium blockchains are monitored by more than one person. The objective of both the blockchains is similar.
Coming on to the fourth form of blockchain technology is hybrid blockchains. If businesses are looking for transparency and complete assurance of privacy as well as security, then hybrid blockchains are the answer for it.
So now you know about blockchain technology more clearly. But my emphasis was not merely on this digital ledger but its four different types – public, private, consortium, and hybrid. Blockchain is a very important concept that must be known by all those crypto enthusiasts who want to make their career in the crypto industry. There are many blockchain courses to study for. If you want a dream job in the crypto field, then start brushing up your knowledge by staying abreast of cryptocurrency latest news today on the Cryptoknowmics website.