The blockchain technology is rapidly gaining popularity. It was introduced in 2008 when the first cryptocurrency Bitcoin was introduced in the market. Today blockchain technology is everywhere. Most of the business organizations are planning to use the blockchain technology so they can provide their customers better services.
The rate at which the value all cryptocurrencies including Bitcoin is increasing there are many individuals who have the same question in mind that what is Blockchain and why all these digital currencies depend on it. The blockchain is a very simple concept but the things will get complicated if you will try to get into the depth of it. Here we have some interesting ways to give you a complete understanding of the Blockchain technology.
What is Blockchain
Here we have the simplest explanation of Blockchain technology with no hyperbole or metaphors. When it comes to cryptocurrency the Blockchain is the record of all the latest transactions. There are three types of blocks that leads to the formation of the blockchain.
1. Location of cryptocurrency
2. New transactions and their block records
3. Voting records
The technology works by completing the information related to the blocks. When each block is completed, it is added to a chain that we call Blockchain.
The cryptocurrencies are encrypted and when you are processing the transactions it seems like you are processing a very complicated Math problem. As the blockchain is gaining popularity, these problems are becoming more difficult only to assure that the platform will remain secure for the users. Once you are able to solve the problems you will be rewarded with the cryptocurrencies in a process we call mining.
Types of Blockchain
If you are planning to use the Blockchain it is important that you understand the different types of Blockchain available in the market.
Here we have the three most famous types of Blockchain
- Fully private Blockchain: all the rights to the access of data are reserved by a single entity that can be a company or individual.
- Consortium Blockchain: the access for the storage of Blockchain is provided to all the members of some kind of consortium
- Public Blockchain: all the users will get the access to use the Blockchain or they will get the chance to only read the available data.
Difference between Public & Private Blockchain
All we do is try to understand what is Blockchain. At the same time, it is important for us to understand that how the technology is working especially its major two types and the advantages that they can bring to a person or company. The two most famous types of Blockchain are public and private Blockchain and they both have their own sets of benefits. It is important that you completely analyze the system so that you can select the best one according to your requirements.
Before we reveal the difference between public & private Blockchain, we should first understand the similarities between both systems.
• These are decentralized peer to peer networks. A similar copy will be maintained by all the participants that have been involved in the transactions.
• There is a protocol that will be referred to consensus that helps both networks to maintain the replica of their transactions. It is in sync with each other. It means that if you make any kind of change or addition into the information related to the transactions all the other parties will be immediately informed.
• Both networks maintain the certain level of security to provide the users will best experience.
Private and public blockchain technology are the two most commonly used types of technology. It is important that you understand the complete difference between them.
Public vs Private Blockchain
Here is all you need to know about the difference between Public & Private Blockchain
• Bitcoin and Ethereum line cryptocurrencies are really easy for the users to access
• The biggest attraction of the public Blockchain is that no one is able to control the information. The information will be settled according to the rules and regulation of the Blockchain. No member is allowed to change the information or protocols of the Blockchain because it has been adjusted by all the users according to their requirements.
• In order to use the Blockchain the users can completely put their trust into the 3rd party. Any user of public Blockchain can easily trust the other users.
• These are the Blockchains that are commonly operated by the companies. Only the individuals that have been granted the permission to use the Blockchain will be able to use it. It is the database that will be showcased to you using the distributed ledger
• As compared to the public Blockchain the transactions are faster in private Blockchain. There is a lot of data in the public Blockchain but in case of Private, you will have the data of limited individuals, so the processing is quick.
It means that the public Blockchain is entirely open and anyone will get the chance to use the technology in the way that they like. Despite having high-security protocols it might threaten the people. However, the services have been attracting the individual to use public Blockchain more than any other types of Blockchain available in the market. The only issue with this Blockchain is that you will have to wait. For the transaction to happen there will be more wait because it cannot happen without proper processing and when there is so much data there will be hard to find the information that you have entered.
On the other hand, in case of private Blockchain, there are chances that the company who is providing the services will get a little authority over the system. They will keep some of the information and will not provide the complete control over the system. This is the reason it is important for you to understand that you can only get the authority that has been given to you by the company. However, the transactions and processing rate is faster which means that you will get the best services.
Hoping this was useful, if you have any question, please feel free to reach out!