Types of Blockchain Networks for cryptography – Decide the one that suits your requirements

Blockchain is a Peer–2–Peer or P2P network that is made up of a chain of blocks forming a network of blocks in a chain formation. According to the Blockchain developers in India, every block is used for storing data and the chain formed is termed as a public database comprising these blocks that are stored in lists as well.

Blockchain network – What is it and how it functions?

As depicted by the blockchain experts of a Blockchain development company, a blockchain network refers to a technical infrastructure that has the capability of providing ledger and smart contract services to the users. Smart contracts are in the works and self-executes regulating transactions that are eventually distributed to every peer node in the blockchain network. Data once enters the network becomes immutable and is recorded on the participant’s copy of the ledger.

A blockchain network is a decentralized Peer-2-Peer network where every network participant receives a copy of an append-only ledger of digitally signed transactions. The replicas created in the network are synched through a protocol which is also referred to as consensus. It is guaranteed that the ledgers will be immutable even if there is a malicious network participant. Best blockchain application development is powered by blockchain technology and are one of the most innovative application models being developed.

What are the types of blockchain networks and their advantages?

As depicted by a Top Blockchain Development company in Kolkata, there are four main types of blockchain network and every one of it comes with its advantages benefitting the end users and their networks.

•    Public blockchain network
The first type of blockchain network was a public blockchain where cryptocurrency like Bitcoin was introduced and this has brought distributed ledger technology or DLT in to the fore. This is a decentralized network, removing the issue faced with centralization like security and transparency. It works on the basis of a consensus algorithm, where the network participants have to reach a settlement on the exact state of the ledger. This network is completely independent of organizations, so in case of organizations shutting down, the network will still run as long as the computers are still connected.

•    Consortium blockchain network
In this blockchain network, the consensus process is entirely controlled by a node that is set of advances, and this network can even be termed as federated blockchain as well. However, right to read the blockchain might be public or may be restricted to the network participants only. This blockchain network reduces transaction costs and data redundancies’, and it can replace legacy systems, which in turn simplifies the document handling process by eliminating manual interventions.

•    Private blockchain network
A private blockchain network is a blockchain network where the write permissions are only handed over to a single organization. However, the write permissions might be public or restricted to a couple of network participants only. Organizations running a private blockchain network are able to change blockchain rules, revert transactions, etc. The network validators are validated, which reduces the chances of miner collusion attack by up to 50%.

•    Hybrid blockchain network
A hybrid blockchain network is best known to provide the best of both worlds. It is a type of blockchain technology that includes the elements of both private and public network where the transaction and data records in a hybrid network are never made public or disclosed but can be verified as per requirement. This network functions in a closed ecosystem, which gives protection from hackers. Privacy in the network is highly maintained and transactions are affordable and instant, which offers better scalability compared to other networks.

Summing up, according to a Top Blockchain Development company in Kolkata, a blockchain network is a digital ledger system where transactions are duplicated and are distributed across the entire network of computers used in the blockchain. In every block, the total number of transactions are cryptographically stored in network and this decentralized database is managed by multiple network participants.