Different types of Blockchains
Blockchain is a network further divided into Private and Public, which is based on the accessibility of the network, and for the same, it has different protocols and sets of standards and regulations.
Blockchain classification can be based on its main working principle, but generally, it has four types
1. Public Blockchain
- Public Blockchain is also known as the Layer-1 blockchain.
- It is permissionless, so anyone can participate in the network.
- Examples: Bitcoin and Ethereum.
2. Private Blockchain
- Private Blockchain is the only permission blockchain and allows participants to have accessibility to the network
- It is operated by a central entity.
- It is specifically used for companies and cartels to maintain their structure privately.
- Examples: Hybrid finance (HYFI)
3. Hybrid Blockchain
- Hybrid Blockchain is a combination of both private and public blockchain.
- It maintains the layer of accessibility as per use cases
- Examples: Komodo (KMD).
4. Consortium Blockchain
- Consortium Blockchain is also known as federated blockchain.
- It is the blockchain network of two or more two companies.
- It is Private for others but decentralized in its action as all the participants are able to record transactions rather than one central control in Private blockchain.
- Examples: R3 Corda
Difference between Various Blockchain Protocols
The blockchain protocol is a set of rules and standards that define the structure and operations of the network on the principles of decentralization, immutability, and peer-to-peer communication.