In the current scenario, everyone would have gone through a word blockchain technology. The working of blockchain technology is more interesting. Blockchain technology can be used in various business sectors for their business growth.Some may have a doubt like
What is blockchain technology?
The blockchain is a robust technology which has the resemblance to the internet of the 90s era, however, blockchain technology is designed to impact the way we live, we function and the way we interact.
Blockchain technology was originally created for the regulation of digital currency such as Bitcoin, Ethereum and also for other altcoins. Blockchain technology is basically a decentralized public ledger for all the cryptocurrency transactions.
Why is blockchain technology considered to be a unique technology?
The unique aspects of Blockchain technology are that digital information can be distributed but not copied. Blockchain technology is acting as a backbone for many trending business models. Presently, Blockchain technology is being primarily used to verify transactions for various digital currency.
Types of blockchain :
Blockchain technology can be classified into 3 different types. They are:
Public blockchain :
Public Blockchain protocols working is based on the Proof of Work (PoW) consensus algorithms. The public blockchain is said to be open-source. Where anyone can participate, without permission.
1. In public blockchain anyone can download the code and start running a public node on their local device, validating transactions in the network, thus participating in the consensus process. The process for determining what blocks get added to the chain and what the current state is.
2. Anyone in the world can send transactions through the blockchain network only if they are valid.
3. Anyone can read transaction on the public blockchain explorer. Transactions will be transparent, but anonymous.
The disadvantages of Public blockchain :
1. Public blockchain to disrupt current business models through disintermediation.
2. No need to maintain servers and admins.
3. Cost reduces in creating and running decentralized applications.
The private blockchain is used in many organizations which is a centralized one. In private blockchain, the advantage is setting up groups and participants who can verify transactions internally.
Private Blockchain has a higher risk of security when compared to the public blockchain. Private blockchains have scalability, state compliance with data privacy rules and other regulatory issues.
The disadvantage of Private blockchain :
1. A private blockchain can reduce transaction costs and data redundancies
2. Get rid of semi-manual compliance mechanisms.
Federated Blockchain :
Federated Blockchains operate under the leadership of a group. Federated Blockchains don’t allow any person with access to the Internet to participate in the process of verifying transactions. Federated Blockchains is high scalability, faster and provides more transaction privacy. Consortium blockchains are mostly used in the banking sector.
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