Bitcoin and cryptocurrencies introduced a completely new type of technology to the world. Blockchain technology has become the foundation of a wide variety of innovative applications such as DeFi and NFTs. On top of it, the fundamentals of blockchain technology explained for beginners would also reflect on how blockchain can also develop the metaverse and web3 applications.
Almost 80% of business executives believe that digital assets and blockchain technology would be critical priorities in every industry. However, it is important to understand the different types of blockchain technology and find the differences between them. Each type of blockchain has distinct traits which make them eligible for specific use cases. The following post will help you familiarize yourself with the different variants of blockchain and their use cases.
How Many Types of Blockchain Technology Can You Find?
The traits of blockchain technology have provided some unique value advantages to developers, users, and businesses worldwide. You must have thought about responses to “Which blockchain is the most stable?” upon learning the definition of blockchain technology. Businesses and developers should know that blockchain has four types such as public, private, consortium, and hybrid blockchains. Let us learn more about each variant in detail in the following section.
1. Public Blockchain
A public blockchain is the first variant of blockchain technology that offered the foundations for Bitcoin and expanded the popularity of distributed ledger technologies. A blockchain technology tutorial can show you interesting ways to resolve issues with centralization, such as problems in transparency and security. The most important highlight of public blockchains is the permissionless nature that enables anyone to become an authorized participant on the network.
Public blockchains would run irrespective of the operations of the organization which starts the blockchain. The common use case of public blockchain networks is visible in mining and exchanging digital assets. Public blockchains could also support non-governmental organizations and social support groups.
2. Private Blockchain
Blockchain network, which operates as a closed network, is the private blockchain network. It is under the control of a single entity, thereby introducing some form of centralization. You can learn more about blockchain technology explained for private use cases, with the controlling organization enjoying privileges for security authorization, accessibility, and permission levels.
For example, the company could determine which nodes can view and modify data alongside preventing third parties from accessing specific information. The use cases of private blockchain technology focus on internal voting, supply chain management, and asset ownership.
3. Consortium Blockchain
Another noticeable highlight among the types of blockchain technology would point at consortium blockchain or federated blockchain. It has the features of public and private blockchain networks. However, the distinct highlight of federated blockchains is the fact that different organizational members can collaborate with each other on a decentralized network.
You can think of a consortium blockchain as a private blockchain offering limited access to a specific group. The use cases of a consortium blockchain could include banking and payments, with different banks banding together to create consortiums.
4. Hybrid Blockchain
The list of blockchain variants in a blockchain technology tutorial would also include hybrid blockchains. Hybrid blockchains are a combination of private and blockchain technology which restricts public accessibility of data. On the other hand, confidential information stays within the network and can be verified.
Users in a hybrid blockchain can have complete access to the network, and the private entity owning the hybrid blockchain cannot modify transactions. The most promising use cases of hybrid blockchain would include storage for medical records. In addition, governance systems can use hybrid blockchains for secure documentation of citizen data alongside sharing the information among institutions with security.
Conclusion
The different variants of blockchain technology provide a clear impression of their unique advantages. You can notice that each blockchain network is suitable for a specific use case alongside serving different benefits for users and developers. Start searching for a blockchain technology tutorial and find out the different ways in which businesses can use different blockchains.
Subsequently, you can use your knowledge of blockchain to prepare for a blockchain certification and pursue a blockchain career role of your choice. On the other hand, it is important to look for trusted platforms to learn about blockchain and its use cases for becoming a certified professional right now.