Block chain

• Blockchain is a technology that stores data and

information in a chain of blocks.
• Every block links to each other by using hash
algorithms.
• This technology uses cryptographic protocols to
enhance security.
• This technology makes it impossible to change,
edit or delete the information in blocks.
 Types of blockchain technology:
• Public blockchains
• Private blockchains
• Hybrid blockchains or consortium blockchain
 Public blockchains
• Public blockchains are open networks that
allow anyone to participate in the network i.e.
public blockchain is permissionless.
• In this type of blockchain anyone can
• join the network and
• read,
• write, or
• participate within the blockchain.
• A public blockchain is decentralized and does
not have a single entity which controls the
network..

• Data on a public blockchain are secure as it is

not possible
• to modify or alter data once they have been
validated on the blockchain.
Features of public blockchain are :
• High Security –
It is secure Due to Mining (51% rule).

• Open Environment –
The public blockchain is open for all.

• Anonymous Nature –
In public blockchain every one is anonymous. There is
no need to use your real name, or real identity,
therefore everything would stay hidden, and no one can
track you based on that.
• No Regulations –
Public blockchain doesn’t have any regulations
that the nodes have to follow.
• So, there is no limit to how one can use this
platform for their betterment
 Full Transparency –
• Public blockchain allow you to see the ledger
anytime you want.
• There is no scope for any corruption and
everyone has to maintain the ledger and
participate in consensus.
 True Decentralization –
•
In this type of blockchain, there isno a
centralized entity.
• Thus, the responsibility of maintaining the
network is on the nodes.
• They are updating the ledger, and it promotes
fairness with help from a consensus
algorithm .
 Full User Empowerment –
In any network user has to follow a lot of rules
and regulations.
In many cases, the rules might not even be a
fair one.
But not in public blockchain networks.
Here, all of the users are empowered as there is
no central authority to look over their every
move.
 Immutable –
• When something is written to the blockchain,
it can not be changed.

• Distributed –
The database is not centralized like in a client-
server approach, and all nodes in the
blockchain participate in the transaction
validation.
 What is Private Blockchain ?
• A private blockchain is managed by a network
administrator and
• participants need permission to join the network i.e., a
private blockchain is a permissioned blockchain.
• There are one or more entities which control the
network and this leads to depend on third-parties to
transact.
• In this type of blockchain only entity participating in the
transaction have knowledge about the transaction
performed whereas others will not able to access it i.e.
transactions are private.
 features of private blockchain are :
• Full Privacy –
It focus on privacy concerns.

• Private Blockchain are more centralized.

• High Efficiency and Faster Transactions –

When you distribute the nodes locally, but also
have much less nodes to participate in the
ledger, the performance is faster.
 Better Scalability –
• Being able to add nodes and services on
demand can provide a great advantage to the
enterprise.
 Public BlockChain
S.no Basis of Comparison Private BlockChain

In this type of blockchain anyone can In this type of

read, blockchain read and
write and write is done upon
1. Access
participate in a blockchain. invitation, hence it is a
it is permissionless blockchain. permissioned
It is public to everyone. blockchain.

2. Network Actors Don’t know each other Know each other

Decentralized Vs A private blockchain is
3. A public blockchain is decentralized.
Centralized more centralized.

4. Speed Slow Fast

Transaction per second

Transactions per second are lesser in a
5. Transactions pre second is more as compared
public blockchain.
to public blockchain.
6. Security It is more secure Less secure.

It consumes more electrical energy Private blockchains

7. Energy Consumption consume a lot less
than a private blockchain.
energy and power.

Proof of Elapsed Time

Some are
(PoET),
proof of work,
Raft, and
8. Consensus algorithms proof of stake,
Istanbul BFT can be used
proof of burn,
only in case of private
proof of space etc.
blockchains.

Bitcoin, Ethereum, Monero, Zcash, Dash, R3 (Banks), EWF (Energy),

9 Examples –
Litecoin, Stellar, Steemit etc. B3i (Insurance), Corda.
 HYBRID BLOCKCHAIN
OR

CONSORTIUM
• It is a privately owned but not by a single
entity or individual.
• It is a group of individuals from different
sectors or a group of companies owns such a
chain.
• It also differs in functions since a HYBRID
blockchain is used to collaborate data from
multiple sources.
• It helps keep the flow of data secured and
efficient between entities.
 Advantages and Disadvantages of Consortium
Blockchain
Advantages of Consortium Blockchain Disadvantages of Consortium Blockchain

Since there are multiple owners from different

organizations, there is no centralization or A consortium blockchain can get corrupted if one
monopoly. or more owners are corrupt.

Rule breakers are detected easily. Validation is Launching such a blockchain is difficult since you
carried out by trusted nodes only, must get more than one enterprise to agree to a
communication protocol.

There is a sharing of data amongst the Upgrading the blockchain is a long and tedious
consortium only, which helps build companies’ task requiring every member’s permission.
trust in one another.

There is no transaction fee involved. There are chances of frequent disputes between
the member organizations.
Characteristics of a Hybrid Blockchain
 1. Partially Decentralized
• In decentralization, it falls in the middle as
there are nodes from different organizations.
These nodes have an equal say in the
blockchain, and a consensus is required for
every transaction to pass through.
• With a limited number of nodes, the
transactions often take less time.
• Also, there is no monopoly inside the
blockchain regarding any decisions.
 2. More Controllable
• A public blockchain lacks the flexibility to
change the data entered in a block once it’s
done.
• Such an issue does not occur with the
consortium blockchain.
• It can be done very easily if the consensus
agrees to change certain data.
 3. Privacy of Data
• Since a consortium blockchain allows only a few
nodes on the blockchain, few people get the
data shared on the blockchain.
• Such an arrangement helps ensure that the data
stored is untampered and completely secure.
• Only a few users have the right to access the
data, and
• there cannot be any modification without the
whole network of nodes agreeing.
 4. Faster Transactional Speed
• Since there are lesser nodes on a consortium
blockchain, there is not much competition to
verify a transaction.
• This helps in keeping the transactional speed
very high.
• It is easier and faster to reach a consensus
than a public blockchain.
 Applications of Consortium Blockchain

• 1. Finance and Banking

• 2. Logistics
• 3. Healthcare and Insurance