The Internet is one of the biggest revolutions that has a major impact on our daily life. It has changed the way we share information with each other. The next biggest innovation that will be going to change the way we share information with each other is Blockchain. In this article, I will try to compare different types of blockchain based on certain parameters. Lets deep dive into the comparative study of various Blockchain/DLT platforms.
Which Blockchain should I choose for my use case…
The blockchain is a shared immutable ledger for recording the history of transactions.
Mainly there are two types of ledger :
Public Ledger: Decentralized, anyone can read and send transactions. e.g. Bitcoin, Ethereum, Hyperledger
Private Ledger: Centralized under one organization which controls the right to view and sens transactions. e.g. Bank chain, multichain.
Based on permissions blockchain mainly of two types:
Permissionless Blockchain: Every node in the network participate in consensus procedure, e.g. Bitcoin Blockchain (Proof of Work)
Permissioned Blockchain: Only Selected nodes(validators, e.g. Government or trusted nodes) participate in consensus procedure e.g. Hyperledger Blockchain.
Anyone in the world can download the data and read the data. Anyone can participate in the consensus process to write the data or block into the public Blockchain. There are numerous public blockchains. Bitcoin which is a peer to peer currency exchange was the first public Blockchain followed by Ethereum which allows anyone to build smart contracts and decentralized apps on it. Some other examples are Dash and Lisk. It is highly secured using cryptography and consensus protocol.
Examples — Bitcoin, Ethereum, Dash, Lisk, Factom, and Blockstream.
Consortium Blockchain as the name suggests is controlled by a consortium of members. It has a pre-defined set of nodes, the users with access to write the data or block. For example in the case of Trade Finance use case, the consortium may be participating banks, importer, exporter, ports of the sending and receiving countries, customs officials etc. Some of these participants will have write access and some or all will have read access. It is not fully decentralized as public blockchain.
Examples — Ripple and R3
In Private Blockchain, all permissions are kept centralized to an organization. Companies who wanted to create own currencies started using this type of Blockchain.
One major criticism of Private Blockchain is that since it is not decentralized, it’s just a distributed database. There are some points in favour of this approach. One it allows some organizations who have compliance and privacy requirements to implement Blockchain. Second, it adds the values like cryptographic auditing and known identities to the internal processes. But with private Blockchain, the central idea and beauty of decentralization and open protocols get lost.
Examples — Multichain, Blockstack
An overview of various types of blockchain with consensus algorithms used by them.
Comparison between Public and Private Blockchains.
Comparison between Permissioned and Permissionless Blockchains
Comparison between Permissionless and Permissioned, Public and Private Blockchains
Pros and Cons of various types of blockchain with their features
A Comparison of the popular blockchain consensus mechanisms
Consensus Algorithms used by various types of blockchains
Comparison between various consensus algorithms based on various parameters
A list of most popular tokens used in blockchain platforms
Comparison of popular blockchains with various functionalities
There is a wide array of approaches to implementing Blockchain or other Distributed Ledger Technologies.
Hope this article will help you guys to identify the types of Blockchain for use business problem.