Blockchain entered the IT industry with Bitcoin, and changed the way the world viewed online transactions. People realised that Blockchain could be more than just Bitcoin as it gained popularity. Various industries, including healthcare, real estate, and politics, have attempted to adopt Blockchain Technology over the years. And, because each industry operates differently, Blockchain had to evolve into various types.
Bitcoin
When someone mentions digital currency, most people often think of Bitcoin first. Bitcoin is a method of conducting an online monetary transaction without the use of any intermediaries. Assume you want to transfer some Bitcoins from one account to another. To transfer Bitcoins, you use the recipient’s Account ID. To avoid fraud, the transaction is sent to Blockchain Mining for validation. The transaction is added to the Blockchain block after it has been validated and verified, and the recipient receives the Bitcoin. When it comes to cryptocurrencies such as Bitcoin, anyone should be able to use it, make transactions, and act as a validator. As a result, there are no restrictions on who can use Bitcoin.Multichain
Multichain is a Blockchain application development used by businesses to improve security. You can prevent unauthorised access to sensitive data by implementing a Multichain. The Blockchain is not accessible to the general public in this case; it is only accessible to authorised entities within the same organisation. If you own a company and decide to store financial transaction details on the Blockchain, you probably don’t want this information to be made public. The data should only be accessible to those who need it (finance department, management, board, etc.). In such Blockchain applications, the node that can join the network and access the Blockchain should be limited. Only the Network Administrator can invite people to join the network. Furthermore, Participant and Validator access is restricted. Multichain is a Blockchain that is only used by one organisation. In the banking industry, a slightly different version of this is used.Blockchain in Banking Sector
Similar to how Multichain is restricted to people within the same organisation, Blockchain used in banking restricts Blockchain access to that specific Bank. The difference here is that the Blockchain should be accessible to all of the bank’s branches and possibly to other banks for inter-transaction. In such applications, the Blockchain is restricted to other trusted nodes rather than just one. Access to the Blockchain should be granted to authorised nodes. It’s similar to how a Blockchain is shared and restricted to trusted nodes. Now that you’ve learned how Blockchain is being used for various applications in various ways, let’s look at the various types of Blockchain.Different Types of Blockchain
#1 Public Blockchain
Public Blockchain is available to everyone, as the name implies, and there are no restrictions on who can participate or serve as a Validator. Nobody has complete control over the network in public blockchains. As a result, data security is guaranteed, and immutability is aided because the Blockchain cannot be altered by a single person. Because each node in the network has an equal share of the authority on the blockchain, public blockchains are known to be fully distributed. Most cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, employ public blockchains.#2 Private Blockchain
Access to a private blockchain, often referred to as a permissioned blockchain, is restricted, as are participation in transactions and validation. The Blockchain is only accessible to pre-approved companies. When creating the blockchain application, the blockchain developers choose these entities with the approval of the relevant authority. The Network Administrator can handle it if permissions need to be granted to new users or revoked from an existing user. In private enterprises, private blockchains are mostly used to hold sensitive data that should only be accessible to specific individuals within the firm. Since Private Blockchain is a Closed Blockchain, the information is only accessible by the organisation and is not accessible to any outside parties.#3 Consortium Blockchain
In Consortium Blockchain, some nodes are in charge of the consensus process while others might be permitted to take part in transactions. Similar to a combination of public and private blockchain, consortium blockchain. It is both public and private because different nodes are sharing the Blockchain, and only specific nodes are allowed access. As a result, it is both public and private. There are two different kinds of users in this situation: first, those who govern the blockchain and select who should be granted access, and second, those who can actually utilise it. When companies are prepared to share the Blockchain but want to limit who can access the data and keep it private from the general public, they can use this sort of Blockchain. When searching for companies that are experts in Blockchain Technology in Malaysia it is important for you to do an extensive research on their Blockchain Development Services to ensure that you find exactly what you are looking for. Here at Digitalfren, we have a group of experts that will answer every question you have.Contact us to book your first free consultation on blockchain development.