Basics of Blockchain Technology
Ravindra Singh ??
Power BI Consultant | Microsoft Fabric | Business Intelligence | Data Modelling & Visualization | Power Apps | Power Automate : Learning Every Day ??
Blockchain technology is taking over the digital world. We accept that it is a sophisticated technology, and there are various elements within the system that need explanation. That is why today we’ll explain all the properties and features that distinguish blockchain.
Why Do We Need Different Types of Blockchain?
When blockchain was introduced to the world, it was a public blockchain type with a cryptocurrency use case. Technology is evolving so much that even big brands like Gucci, Tesla, and Porsche are?accepting cryptocurrency as a form of payment. You can literally buy almost anything with cryptocurrency nowadays. Basically, blockchain provides the concept of decentralized ledger technology. It gave organizations the ability to work without depending on any centralized entity.
Distributed technology solves the limitations of centralization. Although it also creates a lot of other problems to solve when it comes to applying blockchain technology?to different aspects. In general, bitcoin used an inefficient consensus algorithm that is Proof-of-Work. It required the nodes to solve mathematical calculations using energy. In the early days, it was not a problem. But as soon as the difficulty increased, the time and energy required to solve those mathematical equations also increased. This inefficiency makes it not suitable for any system that needs to stay efficient, no matter what.?For example, banks deal with many transactions every day. So, this blockchain type is not suitable for it.?
There are four different major types of Blockchain technologies.
1. Private
2. Public
3. Consortium
4. Hybrid
What is a Private blockchain?
A private blockchain?is a permissioned and restrictive blockchain that works in a closed network.?These are the most appropriate for enterprises and organizations that need to utilize Blockchain just for inside employment. Also, nobody can enter this kind of an organization without appropriate validation. Recently, such blockchains have gained a lot of importance as they help secure companies’ sensitive information.
Advantages of Private Blockchain
Disadvantages of Private Blockchain
Use-Cases of Private Blockchains
Real Estate?– The real estate market is unquestionably stressful because of divided tasks, criminal activities, monotonous paperwork, money expenses, and the chance of misrepresentation. Private blockchain companies can help real estate sectors by offering people ownership, getting installments, and disposing of any hidden criminal issues.
Insurance?– These sectors deal with complicated agreement issues, deceitful claims activity, third-party transactions, and handling tremendous data. Private Blockchains offer quicker and better access that prompts smoother cooperation among backup plans and their clients. In addition, technology can assist in automating the entire insurance claim process, saving the burden of waiting in line.
Healthcare?– In this blockchain organizations can assist with keeping up with patients’ secrecy and offer access to doctors. Additionally, blockchain technology can be productive for assuring integrity in the drug supply chain, including tracking and tracing, also the ideas of provenance.
What is a Public Blockchain?
Public Blockchain is ‘open’ for everyone. You can consider it for individuals. Anyone can join & read / write/audit the public blockchain. It is openly accessible free of charge. It brings transparency to the data or transactions that happen in the blockchain because anyone can review the blockchain.
To write in the blockchain, one has to do some work, but if you adhere to the rules of protocol, there is nothing to stop you from joining and participating in the public network.
Also, public blockchains are built on incentive systems that reward fair behavior and punish unjust behavior.
Advantages of Public Blockchain
Disadvantages of a Public Blockchain
Use-Cases of Public Blockchains
Voting:?Governments can do voting through public blockchain employing transparency and trust.
Fundraising:?Companies can make use of the public blockchain for improving transparency and trust.
What is Consortium Blockchain?
As the name suggests, a consortium blockchain is such that is managed by two or more individuals, associations, companies, or business outfits. It is an innovative way to solve organizations’ needs where there is a need for both public and private blockchain features.
In such type of Blockchain:
Advantages of Consortium Blockchain
Disadvantages of a Consortium Blockchain
Use Cases of Consortium Blockchain
???????????????? ???????? – A consortium blockchain can be used to share research data and results.
???????? ???????????????? – It is also great for food tracking.
?????????????? ?????? ???????????????? – A group of banks can collaborate and create a consortium. They can decide on the nodes that will validate transactions.
What is Hybrid Blockchain?
It is one of the various sorts of blockchain technology. Usually, in general, people consider this a consortium blockchain, but to be honest, it is not. But, there are a few similarities between them. Basically, this blockchain is a combination of both private and public blockchains. It has used cases in an association that neither need to send a private blockchain nor a public blockchain and essentially needs to convey the two universes’ ideal.
In simple words, if you’re looking to get all the advantages of both private and public blockchains with minimal disadvantages, you should go for a hybrid blockchain.
Advantages of Hybrid Blockchain
Disadvantages of Hybrid Blockchain
Use cases of Hybrid Blockchain
???????? ???????????? – We can use hybrid networks for real-estate purposes where real-estate companies can utilize it to run their frameworks and utilize public to show information to the public.
???????????? – Retail can also use the hybrid network to streamline its processes.
???????????? ?????????????????? ?????????????? – Hybrid blockchains are also ideal for highly regulated financial markets.
Closing thoughts!!
We hope that after reading this blog; you have a basic understanding of different blockchains. Although, if you are an organization and want to use blockchain without making everything open to the community, it is a good idea to choose private blockchain. Furthermore, if you want more transparency in your network, a public platform is a good option. However, they are not well suited for enterprise use cases.
I will see you next week, till then????????????????????to the newsletter, and stay healthy ????
Learning to build AI Agents | No Code Tools Enthusiast | Business Enthusiast | Host of “ExperiencesWithAnish” Podcast | Documenting My Curiosity
2 年Wonderful article Ravinder Kandari ?? I mean people who are starting out on WEB 3, blockchain , this article will surely help them a lot. I have a request from my side. Can you break down the core elements that make up blockchain in simple words as your next article Ravinder Kandari ?? ? Thank you in advance