Article, Fintech

The Different Types of Blockchains

types_of_blockchain

I’ve been on a bit of a “The Different types” trend with my articles lately, so I’ve decided to keep that trend going for a short while longer.

And now, of course, this article is about the different types of Blockchains. Just like cryptocurrency, there are different types of Blockchains that exist. And just like the word “cryptocurrency”, the word “blockchain” is used interchangeably when talking about the different types that there are available if the different blockchain types are even talked about at all. So, what are the three types of blockchains?

Permissionless Blockchain

Sometimes also known as a public blockchain. This is the type of blockchain that Bitcoin uses and is essentially a shared public ledger. When transactions are made in a permissionless blockchain, everyone is able to see that transaction. Anybody running a node will also be able to ‘hear’ that transaction and start the validation process.

These types of blockchains are mostly used for a platform that wishes for their system to be a true democracy.

Popular projects that run on a Permissionless Blockchain:
Bitcoin
Litecoin
Ethereum

Public Permissioned Blockchain

The main difference between a public permissioned blockchain and a permissionless blockchain is that not everybody can run a full node and therefore be a transaction validator.  In a public permissioned blockchain, there are certain people who are chosen to validate transactions in the blockchain. So, basically, while the public can still view the entire ledger and make their transactions, they won’t be able to run their own node.

Popular projects that run on a Public Permissioned Blockchain:
Ripple

Private Permissioned Blockchain

The private permission blockchain is very much alike to the public permissioned blockchain. They both share the idea that not everyone can become a validator and instead have their own chosen validators. However, the differences between them the two is in the name. A private permissioned blockchain means that the entire ledger is completely private and unless given access, you will not be able to view it.

The information is still recorded like any other blockchain but access to the public is blocked.

Popular projects that run on a Private Permissioned Blockchain:
Multichain

 

So, as you can see, there are indeed different types of blockchains, just as there are different types of cryptocurrency. Hopefully, this short article has given you some more insight into the cryptocurrency!

 

References and cool links:
While we’re still on the subject of blockchains, you can view the entire block history of Bitcoin, here at https://blockchain.info/
https://www.coindesk.com/private-blockchains-gone/
https://hackernoon.com/3-popular-types-of-blockchains-you-need-to-know-7a5b98ee545a

 

Cover illustration artist Alex37, DeviantArt

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Just two months after his first Bitcoin purchase, Loy found himself working with Embily and has been a Cryptocurrency evangelist ever since. Follow his journey as he continues to learn all he can about Crypto.