Sample Assignment BCT

There are four main types of blockchains: public blockchains which are open to everyone, private blockchains which are permissioned and managed by a single entity, consortium blockchains which are collectively managed by multiple organizations, and hybrid blockchains which combine elements of private and public blockchains.

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Sample Assignment BCT

Uploaded by

Janvi Sagpariya

Available Formats

Download as PDF, TXT or read online on Scribd

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Types of blockchain

There are four main types of blockchain networks: public blockchains, private blockchains,
consortium blockchains, and hybrid blockchains. Public blockchains are open to everyone
and are decentralized, allowing all nodes equal access rights. Private blockchains are
permissioned and managed by a single entity, restricting public access. Consortium
blockchains are collectively managed by multiple organizations, enhancing security with
increased nodes. Hybrid blockchains combine elements of private and public blockchains,
managed by a single authority with public oversight. These types offer varying levels of
decentralization and control over network access and governance.

what is a public blockchain

A public blockchain is a decentralized and open digital ledger accessible to anyone with an
internet connection. It operates on a global scale, allowing transparent recording and
verification of transactions through consensus mechanisms like Proof of Work or Proof of
Stake. In a public blockchain, no single entity has absolute control, transactions are validated
by a distributed network of nodes, and all transactions are transparent and accessible to
everyone. Public blockchains offer benefits such as decentralization, transparency, and
security, fostering inclusivity and innovation by lowering entry barriers. Notable examples
include Bitcoin and Ethereum. Despite their advantages, public blockchains face challenges
related to scalability, energy consumption, and governance conflicts.

Example:
An example of a public blockchain is Bitcoin. Bitcoin operates as a decentralized peer-to-
peer electronic cash system, allowing users to send and receive Bitcoin without
intermediaries. Another example is Ethereum, which is a versatile public blockchain that
introduced smart contracts, enabling the creation of decentralized applications (dApps) and
customized tokens. These public blockchains exemplify the principles of decentralization,
transparency, and inclusivity, shaping the future of finance, governance, and digital
interactions on a global scale.
what is a private blockchain
A private blockchain is a decentralized digital ledger system that operates within a restricted
and controlled environment. Unlike public blockchains, private blockchains are accessible
only to trusted participants and offer enhanced security and exclusivity. In a private
blockchain, access to the network is tightly controlled, with individuals requiring explicit
authorization to join. This access restriction ensures that sensitive data remains protected
against unauthorized access and external threats. Private blockchains are commonly used in
industries like finance, healthcare, supply chain management, and government sectors to
ensure data security and privacy.

Example
An example of a private blockchain is Hyperledger. Hyperledger is a permissioned
blockchain platform that allows only selected users to maintain the shared ledger, providing
control over who can access and participate in the network. Private blockchains like
Hyperledger are commonly used in various industries to ensure data privacy, security, and
restricted access to sensitive information.
what is a hybrid blockchain
A hybrid blockchain is a type of blockchain that combines elements of both public and
private blockchains. It merges the features of public blockchains, such as decentralization,
transparency, and immutability, with the characteristics of private blockchains, like privacy,
scalability, and control over data access. By blending these attributes, hybrid blockchains
offer a versatile solution that can cater to various needs, providing the benefits of both public
and private blockchains. Hybrid blockchains are designed to overcome the limitations of
individual blockchain types, offering a flexible and secure platform for enterprises and
organizations looking to leverage blockchain technology effectively.

Example
An example of a hybrid blockchain is Aergo Enterprise. Aergo Enterprise, developed by
Blocko, a South Korean startup backed by Samsung, is a hybrid blockchain system that
combines elements of both public and private blockchains. This innovative approach allows
for the exchange of assets like data, virtual products, and supply chain registries between
blockchains while enhancing security, scalability, and efficiency. Aergo Enterprise's use of
Merkle Bridges exemplifies how hybrid blockchain technology can facilitate interoperability
and data exchange across different blockchain networks, showcasing the versatility and
benefits of this hybrid approach in the blockchain space.
what is a consortium blockchains
A consortium blockchain is a type of blockchain where the consensus process is controlled by
a pre-selected set of nodes from multiple organizations or entities. Unlike public blockchains
that are open to everyone or private blockchains controlled by a single entity, consortium
blockchains offer a collaborative platform where selected members work together to maintain
control over the network while ensuring a higher level of privacy, security, and efficiency. In
a consortium blockchain, the participating organizations manage the nodes that verify
transactions and maintain the blockchain, striking a balance between decentralization and
control. This type of blockchain is ideal for businesses that require secure collaboration
without sacrificing autonomy or control, making it suitable for various industries seeking to
leverage blockchain technology effectively.

Example
An example of a consortium blockchain is R3 Corda. R3 Corda is a consortium blockchain
platform designed for financial institutions to streamline interbank transactions and reduce
friction in financial operations. It operates as a semi-decentralized network where a
predefined group of participants validate transactions, offering a balance between openness
and privacy. R3 Corda exemplifies how consortium blockchains bridge the gap between
public and private networks, providing efficient transaction processing while maintaining a
level of control and privacy. This type of blockchain is particularly suitable for industries
with multiple stakeholders like finance, healthcare, and supply chain management.