2.2 Types of blockchains – Public, Private and Consortium

Published on May 12, 2021

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Types of Blockchains
There are three types of blockchain networks:
– Public blockchains
– Private blockchains (permissioned)
– Consortium blockchains
Public blockchains
• No access restrictions in a public blockchain and anyone can send transactions to it as well as become a validator.
• Some of the largest, most known public blockchains are Bitcoin and Ethereum etc.
Private blockchains
• A private blockchain is restricted and joining by invitation only. Participant and validator access is restricted.
• Enterprises adopting private blockchain technology and incorporate it into their accounting and record-keeping procedures with autonomy, securing sensitive data.
Consortium blockchain
• A consortium blockchain is semi-decentralized, operated by more than one organization.
• The administrators control users’ access rights to permitted/trusted nodes.
Private blockchain – disadvantages
• Blockchain tools and resources are controlled privately.
• If an attack is made on private blockchain servers, network could be compromised and transactions may be altered leading to adverse implications.
• Public blockchains like bitcoins are protected by the group mining effort, no chance of manipulation.
Big Four accounting firms testing blockchain technologies.
• Ernst & Young has provided cryptocurrency wallets to all (Swiss) employees, has installed a bitcoin ATM in their office in Switzerland, and accepts bitcoin as payment for all its consulting services.
• PwC, Deloitte, and KPMG also testing private blockchains.
Microsoft Visual Studio is making the Ethereum Solidity language available to application developers.
• IBM offers a cloud blockchain service based on the open source Hyperledger Fabric project
• Oracle Cloud offers Blockchain Cloud Service based on Hyperledger Fabric.

List Of Private Blockchains

List Of Private Blockchains, 2.2 Types of blockchains – Public, Private and Consortium.

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