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Types of Blockchain Solutions

When a firm develops a blockchain solution to meet its supply chain requirements, it must inevitably decide which type of blockchain is most suited for the project. As a result, a thorough understanding of the various blockchain architectural possibilities is critical. Not all types of blockchains are suitable for managing supply chain data so you need to pick the one that is most suitable for your business.

Public blockchains

Public blockchains are permissionless and entirely decentralized, allowing anybody to participate. All nodes of the blockchain have equal rights to access the network, create new blocks of data, and validate blocks of data in public blockchains.

Pros:

  • The data is not in the control of any single person.
  • It has applications in the public sector, such as healthcare and education.
  • It is immutable, which means that once an entry is made on the blockchain and validated by validators, it cannot be changed or deleted. An entry is validated when a majority of people agree that it is correct.
  • It is decentralized and runs on a peer-to-peer computer network.
  • The blockchain’s validators and participants remain anonymous.

Cons:

  • In public blockchains, you don’t have to prove your identity; instead, you simply commit your computing power to join the network.
  • Some public blockchains, such as Bitcoin, include a Proof of Work consensus process, in which members must solve a difficult mathematical puzzle to validate a transaction. It necessitates the use of numerous resources, which is a costly endeavor.
  • One of the most significant issues with various public blockchains, such as Bitcoin, is that they process just 4.6 transactions per second, whereas Visa processes 1700 transactions per second.


Private blockchain

A private blockchain is a sort of blockchain technology in which the network is controlled by a single entity. Essentially, private blockchain solutions create these platforms for a company’s internal networking system. As a result, in order to use this platform, you must trust it completely otherwise, it’s not logical to use it.

Pros:

  • Transactions can be executed at a significantly faster rate because just a few nodes are permitted and efficient for handling data in private blockchains. 
  • Increasing the number of transactions per second (TPS). Because there are just a few authorized players in the network, private blockchains can process substantially more TPS than public blockchains.

Cons:

  • They are more vulnerable to security risks and other weaknesses because private blockchains have fewer nodes.
  • Because private blockchain is mostly used by smaller groups like businesses and enterprises, it is more centralized.
  • Unlike public blockchain, private blockchain requires trust since authorized nodes must be trusted to verify and validate authentic transactions.

Consortium Blockchain

What is Consortium Blockchain and how does it work? Federated blockchain, also known as consortium blockchain, is a blockchain technology in which numerous organizations, rather than just one, administer the platform. It’s a permissioned platform rather than a public one and it also has a lot in common with private blockchains.

Pros:

The consortium blockchain is totally supervised by one party, but it is protected against dominance. This supervision becomes able to run their rules, make changes in balances, and terminate transactions that are proven to be full of faults as soon as each member agrees. Aside from that, it does a variety of other tasks in order to provide result-oriented collaboration for businesses with a same aim.

Cons:

Regardless of how many advantages consortium blockchain provides, it also has its drawbacks. One of the biggest drawbacks of this blockchain is that it is centralized, making it vulnerable to malevolent players. When the number of participants is restricted, it is assumed that one of them is to blame.

Because an enterprise has less flexibility than a small business, establishing a general network connecting businesses is time-consuming.

Hybrid blockchain

Hybrid blockchain is a ground-breaking form of blockchain technology. The blockchain is changing the world in a unique way. It helps businesses, governments, and other organizations better manage their workflow and enhance their systems by providing better solutions.

The category is ‘hybrid’ in the sense that participants must be granted access to the network like private blockchain participants are, but once they are in, every function of the network is available like in public blockchains.

Pros:

  • The capacity to work in a closed ecosystem is the most significant advantage of hybrid blockchain. That means that while using blockchain technology, businesses and organizations don’t have to worry about their data being leaked.
  • Change is good for business. The good news about hybrid blockchain is that it eliminates the need for regulatory changes. The nature of the shift, on the other hand, is determined by what the hybrid blockchain is attempting to accomplish. In a hybrid system that handles band registry or user identity for verification purposes, however, don’t anticipate to change data or modify transactions.
  • Because hackers cannot gain access to the network to carry out the attack, hybrid blockchain is impervious to a 51 percent attack.

Cons:

Not everyone, at least not efficiently, is in a financial position to use hybrid blockchain. For most people and businesses, public blockchain is more economical and accessible, but the benefits of hybrid blockchain outweigh the costs.