The world is not new to the terms cryptocurrency and blockchain. Ever since their inception and then, subsequent implementation, they have been creating seismic shifts in the financial forefront. Challenging the ways in which fiat currency works in an economy, cryptocurrencies have been hitting new highs and reaching milestones since their very introduction. Traditional means of banking have been perfected, and the security issues of cyberspace are also handled with amazing blockchain dexterity. The world is potentially moving towards a day when liquid cash would be the lore of yore and cryptocurrencies would be the way to deal with finances. Speaking of the same, we are here to elucidate upon the technological marvel that the blockchain network is and also discuss the various types of blockchain that one must know of if there comes a day when cryptocurrencies and blockchain are all that will be to finances.
The Technology of Blockchain:
If you already know what blockchain is, you are already at an advantage. However, for the uninitiated, here is what you need to know. A blockchain network, simply put, is a digital ledger that holds sensitive and essential financial data. Cryptocurrencies do not need an authoritative institution to overview the way it functions. Decentralization is what makes this domain so attractive. But, they definitely require a medium through which the transaction needs to be deemed complete, and as securely as possible. The blockchain network serves as that medium and ensures that there is security in the transaction. Data that runs through its network is immutable and cannot be tampered with. This thus, by default, reduces the risk of fraudulent activities. Speaking of security in transactions, there are several payment gateways, like that of Flexipay that is powered by blockchain technology.
On the off chance of illegal activity concerning cryptocurrencies, blockchain makes the criminal activities easy to be traced since there is a record of every little thing within the network. Therefore, in a nutshell, the blockchain network serves as a record of not only transactions but also every other information that could be used to bring perpetrators to book.
Types of Blockchain Networks
We have provided a groundwork of the blockchain network upon which we shall build the rest of the article that deals with the types of the blockchain network. The manner in which the domain of cryptocurrency and its underpinning, the blockchain technology are making advances, it is just a matter of time till cryptocurrencies replace the fiat currency in its entirety. Therefore, it is quite important that we know the different types of blockchain networks to be able to make enlightened decisions in the future.
The Public Blockchain Network
Public blockchain networks are open source which means that they allow everyone to participate in the transactions using the network. Miners, developers, or mere users, anyone can be a part of this open-source blockchain network. Public blockchain networks are transparent to their last bit as the data that flows through them are accessible to public knowledge. Discrepancies in data that run through the network are a rarity. Thus, the risk of illicit activities using the public network is substantially lowered.
The Private Blockchain Network-
The private blockchain network, much like its name suggests, does not allow every single person access to it. It is closed, restricted, and limited to a very specific user base. Participants need permission to join the network, and the information running through it can only be accessible to the ones who are specifically consented to be a part of the network.
The Hybrid Blockchain Network
The hybrid blockchain network, again as the name suggests, has the best of both worlds. It is a unique amalgamation of the public blockchain network as well as the private blockchain network. To put it in simpler words, the hybrid blockchain platform uses the perks of the privacy ascertained by the private network and the transparency of the public network. This serves to be an explosive combination that works well when we have major transactions to deal with.
The domain of blockchain is impregnated with opportunities galore, but one must know how to use those to the benefit. Therefore, it is imperative that we arm ourselves with the weapon of knowledge and make the right choice in our lives.