Blockchain is a technique or technology that allows you to share ledgers between many different people. These ledgers are called blocks or data structures and once they are created there are no changes allowed.
This is why all of the changes are stored in other blocks in blockchain networks and once one block gets changed, you have to update all of your other blocks too. That's why it's called a distributed database system because it spans over many different computers around the world, even if those computers aren't connected together by a network cable at all.
A blockchain is just a group of computers linked together over the Internet. The whole system acts like a big computer, but instead of having one single central processor, it has many distributed across the world.
If a smart hacker tried to break into one computer on the network, they would only get access to one single computer out of thousands they might be able to hack, so it's almost impossible.
Also once any change happens on one block in the blockchain, you will have to change all of your other blocks too in order to keep your entire blockchain synchronised with everyone else's blockchain.
Blockchain technology enables immutability, decentralisation, improved security, and quick settlements. Bitcoin helped the technology gain popularity.
Private, public, hybrid, and consortium blockchain networks are the four basic varieties of blockchain technology.
A private blockchain is a permissioned blockchain and a partially decentralised system where access and control are restricted to a single organisation.
In other words, it is not accessible to the general public, and anyone who wishes to join it must request permission from the blockchain's governing body.
A private blockchain requires an invitation, and only those involved in the transaction can be made aware of it. Any transaction may be modified or edited in accordance with the needs of the person in charge of a private blockchain network.
With private blockchains, different levels can be enabled to control who can write to, read from, and audit the blockchain. Users receive rules on private blockchain networks that are not available on other platforms. As a result, certain rules must be followed by all nodes to ensure good company flow.
A private blockchain, however, uses a lot of resources and is more susceptible to
dangers, hacks, and data breaches or manipulation. It is simple for bad actors to put the entire network at danger.
A public blockchain is a blockchain network that is open to everyone, allowing anybody to join at any time. Anyone with access to the ledger can participate in the consensus-building process.
To join the network, validate blocks, and send transactions, all you need is an internet connection. In general, this network provides incentives to users who verify blocks. Public blockchain networks examples like Bitcoin and Ethereum.
Proof of work or proof of stake consensus techniques are used in a public blockchain network to validate transactions. In a public blockchain design, anyone can download the protocol whenever you like, and the blockchain itself is permissionless, meaning anyone can join and interact with the network without requesting anyone else's permission to do so.
The excellent business model that makes the tech sector so successful is typified by the public blockchains. A public blockchain is decentralised and has no central authority over its network. Furthermore, as it is difficult to alter or edit data once it has been verified on the blockchain, data on a public blockchain is secure.
A hybrid blockchain is a unique form of blockchain technology that includes components of both private and public blockchains or seeks to utilise the best characteristics of both types of blockchains.
In a hybrid blockchain, transactions and data are made private but can still be validated as necessary, for as by granting access via a smart contract. Private information is preserved within the network but is still verifiable.
Although a private entity can hold the hybrid blockchain, it cannot modify transactions. A hybrid blockchain gives organisations control over whether data will
be made public and who has access to it by allowing them to set up a private, permission-based system alongside a public permissionless system.
An individual who joins a hybrid blockchain has full access to the network. Unless they engage in a transaction, other users cannot learn the identity of the user. Then the other person's identity is revealed to them.
A permissioned blockchain technology called consortium blockchain is managed by a number of different organisations.
It resembles the private blockchain quite a bit. Contrary to consortium blockchain, which is used by numerous organisations, private blockchain is solely used by one organisation.
Instead of starting from scratch, consortium blockchain enables new users to join the existing framework and share information. Blockchain consortiums let businesses collaborate to identify answers, cut development costs, and save time.
As the industry has matured, there has been a slew of new blockchain implementations. Looking back at the reasons for each implementation can help businesses understand how to leverage these networks in their own systems. Understanding each type of blockchain network is an important step towards developing a successful blockchain strategy.
The world of cryptocurrency is an exciting one, though it can get a little bit confusing at times. There are a lot of new terms being used, and not all of them are easy to understand. But with some practice and a willingness to learn, you'll be able to understand cryptocurrencies in no time at all.
And hopefully, by reading this article and learning more about blockchain networks in general, you've got a clearer understanding of how they work—and why people are so excited about them.
However, you should know that this is only a basic introduction to different blockchain networks. I hope it will be useful for those who are just starting to deal with this revolutionary technology.
If you want to learn more about different types of blockchain networks, stay tuned and be ready to explore new ideas in your life. Because the Blockchain is here to stay!