Blockchain is a technology that uses public ledger technology for transactions, communications, and many other tasks. Well, this technology is used in many other sectors that have revolutionized those sectors. Now, each sector uses each type of blockchain network depending on its benefits. Those types are:
Public blockchain Network
The public blockchain network is the most common type, and everyone has access to the public blockchain. However, anyone with a computer and internet can access the public blockchain. Just the user has to download this, and he or she will be able to use this blockchain network. Now, this blockchain network uses the proof-of-work and Proof-of-Stake consensus mechanisms that allow users to validate their work and make transactions easily. At the same time, this blockchain network is entirely decentralized means no single authority is in command or controls this network.
- No one controls data here.
- Suitable for education and healthcare sectors.
- Once data entry happens, there’s no way to remove or change those data.
- All users of this network remain anonymous.
- It’s a decentralized network that runs on a peer-to-peer computer network.
- Some of the blockchain platforms that run on the Proof-of-Work mechanism, those platforms use a massive number of resources.
- You, as a user, don’t have to verify your identity on public blockchain networks.
- The speed of the public blockchain networks is too slow. For example, Bitcoin can only complete 4.6 transactions per second.
Private Blockchain Network
Private blockchains are those where only a handful of people can access the network. However, all the people in the network can’t access the data of this network. This is suitable for a business who don’t want other peoples except their employees to access their data. Business employees can use this network for faster transactions and data sharing, and other purposes, and other people won’t be able to see the data of their network. However, only a handful of people who has permission can access this network.
- It’s comparatively faster than other blockchain networks.
- Due to the few participants, the platform is modest.
- The blockchain vendor controls this network, which makes it easy to adopt.
- Storage issues arise with the Private blockchain network.
- Financial regulations also make it hard to work with the private blockchain network.
Consortium Blockchain Network
It is a semi-decentralized blockchain network that is controlled by a single entity. And this network is regulated by many organizations. It shows some properties of public blockchain because many organizations are in control. And it also shows the properties of a private blockchain network since selected users and organizations are controlled, and a handful of selected people can use this network.
- It’s controlled by many organizations, but no one can dominate the network.
- There are no transaction fees required in this blockchain network.
- It maintains a high level of security.
- It’s centralized.
- If the number of participants becomes limited, then one of them can be at fault.
- It’s flexible.
Hybrid Blockchain Network
It’s the combination of both public and private blockchain networks. Now, it provides access to both regulated and unrestricted networks.
- Works in close eco-system.
- Changes rules if required.
- Maintains privacy when communicating with the outer world.
- Low-cost transactions.
- Lack of transparency.
- Many regulations are stopping this network from being used in many sectors.