Introduction
Blockchain started as an underlying application model for Bitcoin, but with the application and development of related technologies, blockchain was taken out independently and improved, and ice was applied in other fields such as finance and logistics. However, for different fields, there are different needs for blockchain. Some fields need more security, while others focus more on efficiency. Therefore, there are various improved versions of blockchain in the industry. At present, blockchain is mainly divided into public and private chains and consortium blockchain according to the different degrees of openness to nodes.
Public Blockchain, Private Blockchain, Consortium Blockchain
Public Blockchain: Completely Open and Free to Use
Public chain, or public chain, is a blockchain network that anyone can participate in, and it is also the mainstream blockchain network type in the market at present. Public chains are open to everyone, and anyone can freely access, send, receive and verify transactions; and in order to verify the legitimacy of the information and maintain the normal operation of the network, a specific consensus mechanism is usually introduced to add the correct transactions to the ledger through the assistance of nodes and issue cryptocurrency compensation to the nodes.
As a public blockchain, anyone can read, use or even participate in verification, and users can join or leave the network at any time without authorization.
Private Blockchain: Single Organization, Centralized Management
A private chain, or private blockchain, usually refers to a blockchain network that is centrally managed by a single organization or group of people and is not open to the public. Only licensed users can access and write to the blockchain network ledger.
Although identical to public chains in terms of peer-to-peer interaction, private chains typically operate on small networks within a centralized company or organization and use a specific Identity and Access Management (IAM) system to make them centralized blockchain networks that only authorized users can join or leave.
Private chains are fast and have fewer nodes to maintain network operations, which means that consensus can be reached in less time to confirm transactions. Enterprises can also scale up or down their networks according to their own usage needs.
The opaque nature of private chains increases the cost of trust for users. In addition, because of its centralized nature, if one of the nodes gains access to the central management system of the network, it can hack all the nodes, steal data and disrupt the blockchain network.
Consortium Blockchain: Relatively Decentralized Private Blockchain
Consortium blockchains are essentially private chains that are adapted to the actual application scenario. The authority of pure private chain is usually only within the centralized organization, while the consortium chain is the sharing of data resources among multiple members of the coalition, and the members' read/write authority and participation in bookkeeping authority are set according to the coalition rules. The design conception of a federated chain is more complex than a pure private chain, and the application scope should be broader, which can enable value exchange and information sharing in the financial industry, insurance industry, Internet of Things, etc., such as IBM's HyperLedger.
-
Crypto investment involves significant risks. Please proceed with caution. The course shall not be considered investment or financial advice.