Four Different Types Of Blockchain Technology and What They Do

Last updated on March 9th, 2024 at 12:38 am


Without a doubt, the Blockchain has grown considerably during the past 10 years. The initial blockchain kind was the public blockchain, which was made available by Bitcoin. The blockchain used by Bitcoin is also known as the first edition of the technology.

Currently, there are various forms of blockchain technology, each of which has a specific use and addresses a specific issue or group of issues.

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Photo credit: pixabay

To maximize the benefits, numerous businesses are employing them in their operations, similar to utilizing the speed and efficiency of bitcoin trading software utilized by visionary investors.


An architecture called a blockchain system enables apps to leverage ledger and smart contract services effectively.

In this case, smart contracts are typically used to start transactions that are then sent to each peer node within the network and stored on their respective copies of the ledger.

There are currently four distinct kinds of blockchain networks:

  1. Private
  2. Public
  3. Hybrid
  4. Consortium

Why Do We Require Different Kinds Of Blockchains?

When the blockchain system was first made available to the public, it had a use for cryptocurrencies.

Although it is quite difficult to discern the author’s intentions, it introduced the idea of decentralized ledger technology (DLT).

The DLT impression transformed how we approach difficulties in our environment. It allowed businesses to function freely of a centralized organization.

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While distributed technology eliminates the negative aspects of centralization, it also creates a number of new issues that must be addressed when using blockchain technology in various contexts.

For example, the Proof-of-Work consensus algorithm utilized by Bitcoin was ineffective. The nodes have to use power to solve mathematical problems.

It was not an issue at first, but as the complexity rose, so made the time and effort needed to answer those mathematical problems.

It is unsuitable for any mechanism that must always remain effective due to these inefficiencies.

Private Blockchain

This specific kind of blockchain relies on a constrained social network. In this case, joining does not just demand internet access.

To join, individuals must ask for access from the organization in charge of overseeing this blockchain; if consent is given, individuals may attend and make contributions to the network. Businesses primarily use it to control who has access to update, remove, and modify data.

It safeguards data from unauthorized individuals, which is what the organization needs. Each company needs the security of its data and the assurance that a rival cannot access it.

They, therefore, employ blockchain.

Public Blockchain

There is no centralized authority that can oversee every aspect of this blockchain. Individuals are, therefore, free to participate in this blockchain without needing any authorization.

To join into their system, users of their blockchain just need internet access. This blockchain relies on a huge social infrastructure to function.

Any individual can access recent and historical data here and engage in tasks like mining.

They can verify the transaction, spot errors, and make suggestions for changes, but they are unable to alter any data by themselves.

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Hybrid Blockchain

The positive aspects of both public and private blockchains are kept in this blockchain. With this blockchain, only a portion of the data can be made public, while the remainder remains private.

Although a greater power controls this blockchain, it also occasionally grants liberty. The administration may choose to make any transaction public or private as they see fit.

But that administration cannot make modifications once a transaction is validated and a block is added to the blockchain. A hybrid blockchain is, therefore safe and decentralized at the same time.

Consortium Blockchain

We need first understand the consortium before learning about the consortium blockchain.

A consortium is an alliance of various businesses. Consequently, a consortium blockchain is one in which numerous organizations take part. Another name for it is a federated blockchain.

Since it is operated by several organizations instead of just one, this blockchain is more decentralized than a private blockchain.

However, it is a private blockchain with permissions. The R3 blockchain and the Energy Web Foundation are two examples of this kind of blockchain.


In theory, if you are a business and want to utilize blockchain without making things public, using private blockchain is a fantastic choice.

A public forum is also a smart choice if you want your network to be more transparent. However, they do not really fit enterprise use cases well.

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