Before proceeding further, the first thing you need to know is what is blockchain. Blockchain technology collects and saves data in groupings called “blocks,” which are capable of holding a particular quantity of data apiece. The term “blockchain,” which is a play on words, refers to the data chain that is created when a block fills up completely and is connected to the previous full block.
Now comes the point of how many types of the blockchain are available. The types of the blockchain are as follows:
- Private Blockchains
- Public Blockchains
- Consortium Blockchains
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Private Blockchains:- Networks using private blockchains need invitations. Companies that utilise private blockchains usually create a network that is restricted. Private blockchains are frequently used in internal, business-secure contexts to manage functions like access, authentication, and record keeping. They generally employ a “Proof-of-Authority” (PoA) consensus technique. Usually, the transaction data is kept confidential.
Public Blockchains:- Public blockchains prioritise openness and involvement. Since transaction consensus is “decentralised,” anybody can take part in confirming network transactions, and public access to the software code is allowed (e.g. Bitcoin and Ethereum).
Decentralisation through cryptoeconomics, designed to maintain collaboration throughout a dispersed network, is the primary feature of public blockchain networks. It indicates that there is no central point of failure in the software system design and no political centre of control in public blockchains.
Consortium Blockchains:- Consensus can be reached on consortium blockchains using “Proof-of-Work” (PoW), “Proof-of-Authority” (PoA), or “Proof-of-Stake” (PoS). Furthermore, alternative approaches are accessible, including distributed proof-of-stake. Consortium blockchains work well for applications related to the Internet of Things (IoT), supply chain management, finance, and known parties.
What is Blockchain Security
In order to reduce the risks of fraud and cyberattacks, blockchain security offers assurance services, cybersecurity frameworks, and best practices as part of a comprehensive risk management system for blockchain networks. The blockchain isn’t flawless. Cybercriminals have ways to take advantage of blockchain’s weaknesses and do serious harm.
Because blockchain technology relies on decentralisation, cryptography, and consensus, its data structures are inherently secure. It is nearly impossible to tamper with each new information block because it is connected to every prior block in this way.
Furthermore, a consensus process (authorised users) validates and approves each transaction in a block, ensuring that every transaction is correct and true. As a result, there is no point of failure and transaction records cannot be altered by a user.