Features and Types of Blockchain, Why do we need Blockchain 2?
Last time we check why we need blockchain, this time we cover more on what it is, its features and various types
What is Blockchain ?
This question was discussed in detail in the previous news letter, please go through it, prior to moving ahead with this piece(good context always help)
So, Now you would have a good understanding around what it is and how does it work, Since you have the required background now we all can agree to the following definition of the blockchain(am going to do some jargon throwing now) :
Blockchain is a decentralised network of peers(systems) where information is distributed in a cryptographically secure manner, making the info immutable, and it can be updated or appended only via a consensus amongst the participants
Key Features of a blockchain
here are core features(benefits) of blockchain:
Immutable : Once updated, the entries can’t be updated, at least not without consensus(Proof of work, Proof of Stake)
Security : Dual layer Cryptographically secure of hashing(hashing and signing)
Cost saving : Reduction of mediators, reduces cost of transaction
Anonymity : Participants’ identities are linked to digital addresses, hard to place a name or number to the same
Decentralised : all participants have copies of data on their devices, so no central database
Availability : Even if 10% of network operates, info is accessible
Types of Blockchain
We might hear so much ongoing hype around bitcoins, Ethereum, ripples etc, are they all same ? or not? if not, then how are they different ? let’s find out :
All blockchain are not equal, there are differences in terms of features they offer, most popular types are :
Public
Private
Federated
Public Blockchain
These are open networks, where transaction data is available publically, available where any one can go and see the transaction history. Participant identity can be kept anonymous
popular examples are : Bitcoin, Ethereum, Litecoin etc
They have all the features of blockchain : Immutability, decentralisation, Anonymity, Security
Private Blockchain
These are private network, owned by central organisation. Transactions are secret and visibility is governed by admins, Role based access structure exists
Ex. Multichain, Blockstack
Decentralisation is a bit compromised, due to admin privileges
Federated Blockchain
These are hybrid chain, being run by a group or organisations. Transactions are semi secret and visible to some of the participants.
Ex. R3, Ripple, Hyperledger
It can be treated as a hybrid of public and private blockchain
Let’s call it a day…
Thank you for staying so long, as more exiting stuff is coming next. We will be be deep diving into cryptography and consensus next week.
Until then keep growing! don’t forget to subscribe folks!
Further reading
Want to explore more, check out these articles below :
https://blockchainhub.net/blockchains-and-distributed-ledger-technologies-in-general/