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Although we immediately link Blockchain to Bitcoin, we know that it has several applications such as healthcare, supply chain, government activities, real estate records, among others.
However, in addition to several types of applications, Blockchain technology can be segmented according to particular characteristics that certain businesses, organizations or projects can attribute to the technology in its use.
Follow the post and learn about the four main types of Blockchain.
We can segment Blockchain into four main types: Public, Private, Consortium or Semi-Private.
- Public Blockchain: is a democratic type of blockchain, in which everyone can have access to the transactions carried out. It is decentralized and all nodes in the blockchain network participate in the consensus process. In terms of efficiency, the distribution of transactions takes a long time and network nodes to complete, in addition, transactions on this type of blockchain have a more limited transfer rate. However, it is the blockchain that offers greater security and is controlled by all users, without exceptions.
- Private Blockchain: is a centralized blockchain controlled by a single organization. In this case, only authorized persons can participate in the consensus process and transactions do not necessarily need to be kept public. Therefore, it is less secure than a public blockchain, since as only certain people can access that blockchain, fraud would be possible (although unlikely). It is more efficient than the public blockchain, as it is distributed among a few people, requiring fewer nodes and less time for validating transactions.
- Blockchain Consortium: it is controlled by a restricted group of organizations, which are the nodes responsible for the validation of transactions. The right to access transactions can be public or private, but only authorized persons can participate in the consensus process. It is centralized, being slightly less secure than the public blockchain, although it is faster and more efficient. It is most recommended for companies.
- Semi-private blockchain: administered by a single company and can only be accessed by users who meet the established criteria. It is not decentralized, being more used for government applications or companies that work in the B2B model (business to business). It is managed like private web apps, has less risk of failure and is more efficient than a public blockchain. Only authorized nodes can validate transactions.
Although similar in essence, each type of Blockchain technology finds space for the use of its particularities according to the need for new companies or organizations to structure their projects, as well as in the business restructuring that seeks to adapt to the context of the new digital economy.
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