With the inclusion of Bitcoin, comes the invention of Blockchain in the digital world. To bring a new format of P2P currency, the bitcoin was initiated by the inventors. But no invention can stay single in the IT industry. Hence soon after Bitcoin, many similar cryptocurrencies were introduced to bring rivals in the industry.
But with the increase in alternate options, the technology at the backend needs to be strengthened to deliver the quality and security to the buyers. So, the demand for blockchain comes in high need. And as most of the cryptocurrency depends upon blockchain, the government looks into this technology.
Now, all the above content revolves around the involvement and importance of Blockchain, let’s take a dive into its information and learn about different types of blockchain that work at the backend.
There are three categories of Blockchain:
- Public Blockchain
- Federated /Consortium Blockchain
- Private Blockchain
As the name signifies, under public blockchain, the data is easy to access by anyone over the internet. Everyone around the globe is free to join or exit the public blockchain. At present, there is multiple public blockchains Bitcoin was the first to use public blockchain which was followed by Ethereum. In ethereum, everyone is free to create smart contracts and built decentralized apps over it.
But most of the people always consider it to be the least secure. On the contrary, public blockchain is the most secured open source as cryptography is used along with consensus protocol.
Here also, as the name defines, the consortium blockchains are majorly controlled by the consortium. Here, the common user is allowed limited permissions to write or block the data. In many cases, the consortium can be a bank, export/import firms, custom officials, etc. Here the point is, unlike public blockchain, the federated blockchain is not completely free to access.
In Private Blockchain, the complete rights are controlled by the specific company. The private blockchains are built by the private firms where they move ahead to build their digital currency. The only limitation it has is, the data is not decentralized, it’s just for the use of distribution. This blockchain can never fulfill the requirement of common people.
In most of the discussions, the private blockchain is not considered as a blockchain category. So, it becomes a debatable topic as it lacks all the points that must be present in a blockchain.
The current era has proved the success of public blockchain, but coming tenure will give us a better view of which blockchain will rule the market.
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