Now analysts expect that Blockchain technology will transform a variety of industries, automating and protecting data communications and securing transactions.
Understanding Blockchain potential, some experts even predict the revolution in the business world.
However, Blockchain isn’t only about financial transactions, transparency, and data access availability. There are different Blockchain types, with their goals and characteristics.
Types of Blockchain
Here anyone can become a network participant and create and send transactions. Also, any user can participate in the process of determining what blocks will be added to the chain (consensus process).
Thus, public Blockchain has no limitations related to reading data and sending transactions.
This type of Blockchain has some limitations: only a certain group of organizations have a direct access to reading data and sending transactions.
Permissionless Blockchain isn’t restricted to the personality of miners, users, who have the ability to analyze transactions and create blocks. Concerning famous projects, Bitcoin decentralized platform refers to permissionless Blockchains.
Having shown itself as an advanced digital payment system, Bitcoin Blockchain encourages organizations to adopt this technology in their business environment.
In permissioned Blockchain, only a certain group of users have data access and can process transactions.
This type provides 3 levels of data access:
limitations to reading transactions: for example, a customer may have access only to certain transactions;
sending transactions for their further inclusion in Blockchain;
the creation of new blocks and the inclusion of blocks in the chain.
Though the most popular Blockchain projects are Ethereum and Bitcoin, referred to permissionless Blockchains, they don’t solve all challenges and have some limitations.
Since the network is open, any participant has data access, can record data, and create new blocks of transactions.
However, in the case of a large business with multiple internal work processes, the top-priority issue is control and regulation. And permissioned Blockchains were created to achieve this purpose.
So, learn more about permissioned Blockchain use cases and development.
Also, get insight into the difference between public and permissioned Blockchains.