It is normal to quickly come to terms with Bitcoin and cryptocurrency in this 21st Century. For those banking-inclined, blockchain is the most recent technology raving in the market.
A blockchain network is a digital network that offers ledger and smart contracts services to applications. The smart contracts generate transactions that are later distributed amongst every network node. These contracts are recorded without alteration on their copy of the ledger.
Blockchain technology broadly cuts across numerous applications and networks of utility with the end of serving industries like finance, gaming, and fashion. However, a blockchain network functions properly in synergy with node operators, miners and blockchain developers, and a community of users.
Blockchain networks can be considered a recent innovation in the financial world, but their history can be traced back to cryptography from the early 1980s. Nonetheless, it came to the spotlight through the development of Bitcoin, which began operation in 2009 by Satoshi Nakamoto.
Types Of Blockchain Network
1. Public Blockchain
A Public Blockchain network is a designed feature accessible to the public without validity and participant restriction. Due to its fully decentralised nature, no one can manipulate the stored data in the network.
A public blockchain is mainly sought after by crypto-economics and cryptographic verification through cryptos like Bitcoin and Ethereum.
Advantages Of Public Blockchain
1. It protects developed applications, as developers’ access can also be restricted.
2. Public blockchain is used by a large entity and does not require third-party verification.
2. Private Blockchain
As the name implies, a private blockchain is a regional network that offers access to only authorised people. The charges can choose blockchain developers while granting them permission for the development phase of the network.
The administrator is saddled with the sole responsibility of providing or revoking access to existing users after the network launch. Often, private companies use this type of blockchain network to store sensitive data.
Advantages Of Private Blockchain
1. A greater level of privacy is provided with the restriction of reading permissions.
2. This provides the company using it with the power to alter the blockchain rules, revert transactions, and adjust banners.
3. Consortium Blockchain
This operates with a consensus process being controlled by a preselected set of nodes that enables the operation of multiple entities. Information can be shared, and many entities have a network using the consortium blockchain. Banks, government parastatals, and big companies primarily use this.
Advantages Of Consortium Blockchain
1. Transaction costs and data redundancies are limited.
2. It simplifies the handling of documents and the riddance of semi-manual compliance mechanisms.
4. Hybrid Blockchain
This is a network characterised by both public and private blockchain networks. Hybrid blockchain is developed such that it is not accessible to everyone but offers privacy, transparency, and integrity features.
Advantages Of Hybrid Blockchain
1. Cost of the transaction process is vastly reduced.
2. Its flexible nature enables it to be altered in terms of security, transparency, and decentralisation features.
Application Of Blockchain Network
Blockchain technology helps bridge the gap in the health system of society in a bid to prevent theft, corruption, and the divulging of unwanted information.
2. Real Estate
Blockchain network creates a possible medium for both seller and buyer. The function of a middleman is exempted, which in turn saves brokerage fees. Using the blockchain network, properties can be quickly registered digitally with the verification of the ownership of the property.
3. Banking And Finance
Decentralised Finance (DeFi) is considered the hallmark of the banking industry. Blockchain networks are used to build an end-to-end user-friendly banking system by reshaping the banking system with technological sophistication.
The Blockchain network is the best medium for ensuring accurate and fast information processing. The technology also enables the proper functioning of cryptocurrencies like Bitcoin through cryptography. However, every blockchain network is defined by its uniqueness and use. So the type of network to opt for depends on personal or organisational needs.