There are tons of different types of blockchain technology for enterprises. If you don’t have a clear understanding of them from the start, it can be difficult to make the right choice for your organizational needs. To help you out, we’ll give you a diagram of the different types of blockchain. There are generally three types of blockchain technology.
The basic classification is.
- Private
- Public
- Federated
Private Blockchain
In private blockchains, one organization will have authority over who can join and access the network. Think of it as a centralized-decentralized network.
Doesn’t sound so decentralized, does it? Well, the core value of blockchain is still here, but with this you will have your control. This ledger is not public property, so you will not be able to access it without any authorization. Moreover, the managing entity can override any new blocks on the network, or even delete them.
So instead of a public ledger architecture, you get a distributed ledger environment where the ledger can be shared.
It’s similar to a typical blockchain network. For example, you will be dealing with cryptography during a transaction, so each transaction will be added to the ledger by going through cryptography. So no one will know about your transaction.
Ripple’s enterprise blockchain platform is one of the popular blockchain technologies for such cases. However, Ripple offers a more structured network only for enterprise-level organizations.
Features to consider for your company
Maintains privacy
Implementing a private blockchain for an enterprise will always help in preserving your privacy by any means. Usually, large organizations have to deal with a lot of private information. If somehow they are leaked, their competitors can take advantage of it. This will hurt the sales and reputation of these organizations.
Therefore, to keep them safe, implementing a private blockchain can offer you the privacy you need. No one will be able to see your sensitive information and you can enjoy a sophisticated technology.
If we compare this with the energy consumption of public blockchain, we can see that private blockchains are always one step ahead. Public blockchain requires a lot of energy to run a consensus protocol on the network. Typically, these platforms use a fairly strong, energy-consuming protocol such as Proof of Work- PoW. However, not every public blockchain has the same level of energy consumption.
On the other hand, to adapt a public blockchain for an enterprise, they don’t need a consensus mechanism that requires a lot of energy consumption to reach an agreement, they basically use a type of voting mechanism to reach an agreement. That’s why it’s energy efficient.
Less volatile network
Private networks have a less volatile architecture. Since the managing organization is always reviewing the network, the possibility of variability is highly unlikely.
Organizational authority
What’s better than having organizational authority? With a private blockchain solution for the enterprise, you can achieve just that! In public blockchains, there will be no control over the ledger system, or you won’t be able to stop any node from participating. However, because you will have sole control of that network, you will have regulatory standards that another network may lack.
Public blockchain
In a public blockchain, everyone is allowed to join and participate in the network. Everyone can see the ledger and participate in the consensus.
So, if you are in the realm of complete decentralization, then you should definitely check out the adoption of public enterprise blockchain. The public version of blockchain was the first in the history of blockchain technology. With the advent of bitcoin in the world of technology, other corporations tried to develop the same technology without the flaws of the parent technology.
In a public blockchain, you will get equal rights and will be able to join and participate in the consensus mechanism at any time. The best part of implementing a corporate blockchain is that you will get a higher level of security than in a private blockchain. How? Well, since there won’t be any organizations with sole authority, no one will be able to remove your transaction from the ledger.
In addition, the public blockchain scheme allows everyone to see what’s going on in the ledger. If someone tries to make some discrepancies, everyone will be able to see it.