Understanding Different Types of Blockchain Technology

The rise of web3 has increased the popularity of blockchain technology and put it under the limelight. With the urge and anticipation to gain the first-mover advantage, various large enterprises have made significant changes considering the potential of blockchain and the metaverse. One of the few examples is the rebranding of Facebook to “ Meta .” Another great example would be the virtual metaverse event hosted by the world’s leading bank J.P. Morgan. However, the influence of blockchain is not limited to any specific industry or domain.??

According to a Statista report, in 2021, the worldwide blockchain technology market was estimated to be worth $5.85 billion USD. This is expected to expand to 1,235.71 billion US dollars by 2030, reflecting an 82.8 percent compound annual growth rate. The major impacted industries are expected to be retail, banking, and manufacturing.??

Advantages of Implementing Blockchain Technology in Your Business??

The upcoming few years will bring revolutionary changes in the field of blockchain technology. This innovative and disruptive technology can be the key to bringing efficiency, robustness, and reliability to the present business processes.??

Here are the following few ways blockchain technology can benefit modern businesses:??

• Establish a higher level of data security??
• Reduce third-party interventions??
• Eradicates data silos by consolidating data into a single system using a distributed ledger shared over a network that only authorized parties may access??
• Allows effortless tracking and tracing of the supply chain process?
• Build confidence between the business parties by providing reliability and safety??

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Types of Blockchain Technology??

Blockchain technology has the potential to create a dramatically new competitive future, with applications that extend far beyond bitcoin and cryptocurrencies. Here are four different types of blockchain technology you need to know to excel your business to new heights:

Public Blockchain??

The very first on the list is the public blockchain technology which is known as the creator of cryptocurrencies like Dogecoin and Bitcoin Inc. and assisted distributed ledger system (DLS) to gain market demand. By empowering the concept of decentralization, transparency, and security, it eliminates the problems that arise with a centralized system. DLT does not store data in a central location but rather distributes it throughout a peer-to-peer network. Because of its decentralized structure, it needs some mechanism to confirm data validity.??

A public blockchain is completely independent with no restrictions and permissions. Anyone with a stable internet connection can sign in and access present and previous activities. Because the source code is typically open source, no legitimate record or transaction may be modified on the network, and anybody can check the transactions, uncover errors, or offer modifications.??

Private Blockchain??

The private blockchain, also known as permission blockchains or enterprise blockchains with more restrictive conditions, works under and usually under the control of a single entity. Unlike a public blockchain, it’s a closed and less auditable network ideal for small network operations inside an organization.???

However, the operation of private blockchain hasn’t changed much, and it uses the same peer-to-peer networks and decentralization.??

Hybrid Blockchain??

Private and public blockchain is like left-wing and right-wing; what if you want something that’s neutral? This is where the hybrid blockchain comes to play; it provides the benefits of both a permissioned system and a permissionless system. With the combination of both private and public blockchains, an organization can achieve the best from both worlds.??

Transactions and data on a hybrid blockchain are often not publicly disclosed but may be validated when necessary, for as by granting access via a smart contract . Confidential data is retained within the network but may still be verified. Even if a private company owns the hybrid blockchain, it cannot change the occurrences.??

Consortium Blockchain??

Federated or Consortium blockchain, similar to hybrid blockchain, comes with both public and private blockchain features. It is a blockchain network in which the mining process is tightly regulated by a predetermined number of nodes or stakeholders. Usually, consortium blockchain is implemented in banking or payments. Various banks can create a partnership and decide which nodes would authenticate the activities.??

In the end, blockchain technology will continue to gain popularity in worldwide industries and is quickly getting industry acceptance. Each of these blockchains has the potential to increase confidence and openness while also creating a better database of transactions for leading enterprises.?