Blockchain technology is an innovative way of keeping records in blocks which makes it difficult to be varied, defrauded, or hacked. This technology gained popularity with the creation of bitcoin, but its uses stretch beyond being a distributed ledger for cryptocurrencies.

It is almost common knowledge that blockchain is associated with cryptocurrencies, but this article aims to provide a deeper insight as to what blockchain technology truly entails.

Technology Combination of a Blockchain

• The public blockchain. The public blockchain was the original blockchain technology. It derived the alternative term of a distributed ledger as a result of its use in the creation of the most popular cryptocurrency, bitcoin. This is the most common kind of blockchain that guarantees decentralization, safety, and verification by the nodes. The public blockchain verification process involves a consensus algorithm; Proof of Work(Pow) or Proof of Stake(PoS). Essentially, this kind of blockchain is non-restricted and permission isn’t needed to be a part of it. Some of its shortcomings that warranted the need for new initiatives include the labor-intensive and time-consuming aspect of the PoW method. It also has scalability issues and the fact that everything can be seen by the public.
• A private blockchain. The main difference between the public and private blockchain is accessibility. There is a restriction on the access to a private blockchain; permission is required. So, a private blockchain is a sealed network that is governed by an authority. Yes, it does go against the blockchain decentralization idea. Nevertheless, it has its perks as it is more suitable for private corporations, and in comparison to the public blockchain, a consensus can be reached more quickly.
• A consortium blockchain. On the first look, it looks like a combination of the public and private blockchain, however, it is more of a private blockchain upgrade. It performs the same functions as a private blockchain but is governed by several organizations, eliminating the decentralization problem.
• A Hybrid blockchain. This combines the characteristics of a public and private blockchain.

Conclusion

There is so much to know about the amazing technology that is blockchain. These details help shed light on what it truly is.