Blockchain has gained tremendous popularity in recent years in the industry due to being an immutable and distributed ledger technology. The term “blockchain” figures out to the utilization of a “shared distributed database,” which could make digital transactions for a network of users and trace all of the tangible or intangible assets involved in the transaction. The four major advantages which define a distributed system are higher computing power, cost reduction, higher reliability, and the ability to grow naturally. All of those properties focus on one simple and powerful quality: the system’s integrity to execute smooth and reliable functioning.
Different Types of Blockchain Networks
There are primarily two different types of blockchains: public and private blockchains, and there are two other derivatives: hybrid and consortium. Although there are multiple requirements to consider, different blockchain networks can be used to perform secure transactions in a network.
Public Blockchains: A public blockchain means a permissionless decentralized system where data in the blockchain network is immutable and irreversible. All users in the network can access the chain and any amendments made would result in adding new blocks to the chain. Bitcoin, Ethereum, and Litecoin are examples of public blockchain systems.
Private Blockchains: The significant distinction between public and private blockchains is that the former may be joined by everyone, while only authorized users may enter the latter. This blockchain network can benefit certain organizations or enterprises because they restrict the number of participants or only allow a selected number of participants into a network.
Hybrid Blockchains: Hybrid blockchains exhibit properties of both public and private chains. The hybrid blockchain design is distinguishable because it is not accessible to everyone, but still demonstrates more blockchain features like immutability and irreversibility. The users of hybrid blockchains can choose their participants and decide which transactions are made public.
Consortium Blockchains: Consortium blockchains are blockchains controlled by a group of organizations, rather than individuals, similar to private blockchains. Consortium blockchains are more decentralized than private blockchains which results in higher levels of security. Consortium blockchains have potential to thrive in businesses, banks, and other payment processors.
The blockchain's primary application is to perform transactions in a secure network. People utilize blockchain systems for several different purposes. The significant use cases we see today, and may see in the the future, are in the healthcare sectors, digital transactions, NFT (non-fungible token) marketplaces, and real estate management. In 2019, it was estimated that around $2.9 billion was invested in blockchain technology, which represents an 89% increase from the year prior. Additionally, the International Data Corporation has estimated that corporate investment in blockchain technology will reach $12.4 billion by 2022. According to findings from Research and Markets, the worldwide blockchain supply chain industry is expected to reach over $3 billion by 2026. Some countries like China, India, Australia, and Singapore are witnessing growth in a number of start-ups in cryptocurrency and blockchain technology. This means that organizations have joined various conferences to brainstorm how to further develop the technology and understand the value of blockchain.
1) del Castillo, Michael. “Blockchain Goes To Work At Walmart, Amazon, JPMorgan, Cargill and 46 Other Enterprises,” Forbes, April, 26, 2019.
2) “Global Blockchain Supply Chain Market by Offering (Platform, Services), Type (Public, Private, Hybrid & Consortium), Provider, Application (Asset Tracking, Smart Contracts), Enterprise Size, Vertical (FMGC, Healthcare), and Region - Forecast to 2026,” Research and Markets, March 2021.
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