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<p>To the average individual with little or no knowledge of web3, every blockchain is very much the same. I mean, they are all blockchains, right? Well, that is not exactly the case. Blockchain networks are categorized according to their structure and function.</p><p>The type of blockchain determines the consensus mechanism and other working features. In this regard, understanding the different kinds of web3 networks is essential.</p><p>Below are the different types of blockchains:</p><h2 id="header-0">Public Blockchains</h2><p>Public blockchains are networks that are truly decentralized when storing and <a href="https://tectum.io/wp-admin/post.php?post&#61;87233&amp;action&#61;edit" rel="noopener noreferrer nofollow">sharing information</a>. These chains are considered the truest form of peer-to-peer systems, as they do not keep information on a central server. Furthermore, the decentralization protocol also applies to approving the addition of new blocks.</p><p>Public blockchains use the proof of work consensus to verify information. More so, users can access existing information on the chain by solving complex computations. Anyone on the block can also identify defaults and propose modifications. No single person can alter or delete existing information stored on such networks.</p><p>There are still certain drawbacks to public blockchains. Despite the security measures in place, hackers who gain control of more than half of the user accounts on the blockchain can alter the data stored on blocks. More significantly, the speed of transferring data on these networks is very slow. In addition, it takes significant electricity to manage this type of blockchain.</p><h2 id="header-1">Private Blockchains</h2><p>Next on the list are private blockchains. These blockchains are not private, such that they circumvent transparency. Private in this sense is that they do not operate openly where anyone can contribute to the network. Instead, the whole process is owned and managed by a “private organization” on a smaller scale</p><p>People often refer to this type of network as enterprise or permissioned blockchains. The major difference is that the company managing the network can easily change or modify information on the blocks. More so, they can prevent a third party from doing so.</p><p>The number one problem with private blockchains is that most Web3 experts do not consider them proper blockchains. The reason is that the enterprise can easily manipulate data. Furthermore, being decentralized and lacking draws question marks on the security and transparency of these blockchains.</p><p>Regardless, private blockchains are very energy efficient. This means that corporations do not have to spend heavily on power. Furthermore, transactions conducted on these blockchains are usually faster. In fact, the fastest blockchain is most likely a private blockchain.</p><h2 id="header-2">Hybrid Blockchains</h2><p>As the name states, hybrid blockchains incorporate the benefits of both public and private blockchains. An organization will set up a private blockchain and make certain aspects publicly accessible via a <a href="https://tectum.io/tectum-blockchain/" rel="noopener noreferrer nofollow">block explorer</a>. It is more or less a compartmentalized system.</p><p>While certain parts of the network are private, they can be verified for transparency purposes. This can be done through a smart contract. Despite managing the blockchain, the enterprise cannot independently alter data stored on the blocks. Meanwhile, certain firms go as far as offering public nodes to interested individuals.</p><p>However, these people must meet some important criteria before they are offered a node to verify and confirm transactions. This step is essential because nodes are pathways into the blockchains. A poorly guarded node can quickly grant a hacker backdoor access to the blockchain and put the system at risk.</p><h2 id="header-3">Consortium Blockchains</h2><p>This is where things can get confusing, especially if you are not following through with the types of blockchains listed so far. The consortium blockchain shares significant similarities with a hybrid blockchain. However, there are still some major differences.</p><p>The consortium blockchain is a network that is operated and managed by a group of companies. Recall that a hybrid blockchain is managed by a single institution, which then grants access to dedicated people. In this case, multiple establishments jointly create this network.</p><p>For a better understanding, think of consortium blockchain like the SWIFT banking system. Nobody individually owns it. Instead, different establishments come together to create a joint system. This kind of network works well towards supporting multichain transactions. They ensure the interoperability and scalability of blockchains.</p><p>Meanwhile, there are still security vulnerabilities associated with this system. Each member of the consortium must have a very secure data architecture. This is because a hacker can use them as a tool to breach the entire system.</p><h2 id="header-4">What is the Best Blockchain?</h2><p>This is probably the question everyone is asking. What is the <a href="https://softnote.com/" rel="noopener noreferrer nofollow">best blockchain</a> from the different types we have listed above? There is no “best” in this case. The focus should be the option that suits the needs of your company or system.</p><p>Public blockchains are perfect for non-governmental organizations where transparency is essential. They are also perfect for governmental establishments that serve the public. The reason is that they cannot afford to risk lacking transparency.</p><p>On the other hand, private blockchain will serve your small or medium-scale business very well. This is perfect if you do not have a board or your company is not listed for external investments. At this point, you are not really answering to anyone.</p><p>Hybrid blockchains are for expanding businesses and large corporations. While you need to protect private data, the company must show some level of transparency. Consortiums will help facilitate inter-organizational data transfer.</p>

Understanding the Different Types of Blockchains

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