What is Blockchain and its Types
What is Blockchain?
Although the name suggests a tough geeky thing, actually it’s a simple concept. It’s essentially a database in which data is stored in blocks.
A blockchain, at its most basic level, is a list of transactions that anybody can see and verify. Blockchain technology supports cryptocurrencies such as Bitcoin and Ethereum.
Why is blockchain technology generating so much buzz?
Many efforts have been made in the past to create digital money, but they’ve all ended.
Blockchain is a decentralised medium, which means no one is in charge of it, instead it is run by individuals who utilize it.
How does BlockChain Works?
The fundamental goal of a blockchain is to let people, especially those who don’t trust one another, communicate vital data in a safe, tamper-proof manner.
It Works via three concepts:
Each block contains data and has its own unique header, which is recognized by its block header hash.
The mechanism through which miners add new blocks to the chain is known as mining. Miners utilize specialized software to solve the exceedingly difficult math challenge of generating an acceptable hash.
Making a change in the block changes all other blocks, think of it as a Rubik’s cube.
When a block is properly mined, the update is acknowledged by all network nodes, and the miner is rewarded financially.
Because of the decentralized blockchain technology, no one can own the chain; instead, it is a distributed ledger that is maintained by the nodes that are connected to it.
(A ledger is like a system of record that keeps track of all the money flowing into or out from a network)
A node is any kind of technological device that stores replicas of the blockchain and keeps the network functioning.
Types Of Blockchains
There are four basic sorts of blockchain technologies at a glance. The following are furnished below:
A public blockchain is basically open to all blockchain.
Anyone with web access becomes an authorized node and enters the blockchain network by registering on a blockchain platform.
Eg- Bitcoin, Ethereum, Litecoin
A private blockchain is a restricted blockchain, only in a closed network can you utilize this. Private blockchains are typically utilized within a company or organization where just a few people are allowed to participate in a blockchain network.
Eg-Multichain and Hyperledger projects (Fabric, Sawtooth), Corda, etc.
A consortium blockchain is a semi-decentralized type in which numerous entities control a blockchain network. Banks, government agencies, and other institutions frequently use consortium blockchains.
Eg- R3, the Energy Web Foundation, and so on.
The benefits of both private and public blockchains are combined in a hybrid blockchain. Users can manage who has access to which data is stored on the blockchain via a hybrid network.
Most Popular Blockchains
- Binance coin
A blockchain is a catalog of transactions that anybody can access and verify so I’m assuming that you’re now familiar with blockchain principles. Bitcoin is the first successful blockchain implementation. Today, blockchain technology is being used in a variety of industries where trust without the involvement of centralized authority is desired.
So Welcome to the world of BlockChains.