The concept of blockchain technology is “a free, distributable leader capable of recording securely and permanently transactions between two parties. “To make this definition clearer, we can break it down into smaller chunks. When a blockchain is referred to as “open,” it usually refers to the open-source code base that underpins the majority of blockchain protocols. You can build public and private chains using open-source code; the differences will be discussed later. The term “distributed directory” refers to the fact that many people can access the blockchain database used to record transactions. As a result, no single party owns or controls it entirely. The use of blockchain technology would support any transaction between two parties. This is because a third party (such as a bank) doesn’t involve the transaction, reducing uncertainty and costs. When transactions are put into the blockchain database, the participants agree to them, and they cannot be reversed. The cryptography that underpins blockchains enables these transactions to be provably checked, as well as ensuring the records’ permanency. Let’s take a look at the various forms of chains that are currently available to build on now that we know what blockchain technology is.

Why Do We Need Different Blockchains?

The most basic prerequisite or application of a blockchain is to perform transactions or information exchanges over a secure network. However, how people use blockchain and distributed ledger technologies or networks varies depending on the situation. Take, for example, Bitcoin, which is how blockchain was first introduced to the general public. Bitcoin is a digital currency that facilitates transactions using blockchain technology. Due to the enormous benefits of bitcoin, many people use it and make money by trading it. If somebody wants to trade bitcoin, then the most important factor is to know bitcoin price fluctuations. To know more you can visit the bitcoin system website  People worldwide may become nodes, check other nodes, and exchange bitcoins on this form of the blockchain network, making it a public network.

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Assume, on the other hand, that a bank employs a private blockchain network. It will be a password-protected network to which only the bank’s registered members will have access. As a result, no one outside of this closed network can access bank data. A network administrator can control a private network’s restricted and approved nodes. The data transmitted over a private blockchain network remains within the network. Any new node wishing to join a private network must first obtain permission from the network administrator. The bank has complete control over the size of its private blockchain, whether it is for all of its branches in a city or all of its components worldwide. The blockchain network can be set up in several ways, depending on the use and specifications, much like these examples.

The Different Types of Blockchains

Sometimes confused with blockchains, traditional database and distributed ledger technology (DLT) weren’t in the Three styles.

1. Public blockchains 

2. Private blockchains  

3. Hybrid blockchains  

1.      Public Blockchain

One of the various forms of blockchain technology is the public blockchain. A public blockchain is a permission-less distributed ledger that everyone can enter and conduct transactions on. Each pair has a copy of an unlimited version of the booklet. As a result, anybody with an internet connection may access the public blockchain. The bitcoin public blockchain was one of the first public blockchains to be made available to the general public. Anyone with an internet connection could carry out decentralized transactions.

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2.      Private Blockchain

One of the various forms of blockchain technology is a private blockchain. A private blockchain is a blockchain that operates in a restricted area, such as a closed network. It’s also a permissioned blockchain that a single person runs. Private blockchains are suitable for the internal use of a privately held company or organization. You can use the blockchain and restrict access to the blockchain network to just a few people.  

3.      Hybrid Blockchain

One of the different blockchain forms is hybrid blockchain. The final blockchain form discussed in this article is hybrid blockchain. While hybrid blockchain can sound like a blockchain consortium, it is not. However, there might be some similarities. A hybrid blockchain blends the advantages of both public and private blockchains. It has applications in organizations that don’t want to deploy either a private or public blockchain and instead want both worlds’ best.

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