The masses who know about cryptocurrency have the quality of knowledge about Blockchain. It is the record-keeping technology for the Bitcoin network. Additionally, it is a data that stores the data in the form of blocks. Further, these are chain together.
What is Blockchain?
Not all the masses are familiar with the concept of Blockchain. But, its core concept is relatively easy to understand. Blockchain is one kind of database. Do you know the meaning of a database? If not, let’s know, what is it?
The term database is explicated as the collection of information stored electronically. In other words, information store on a computer system.
Apart from it, Blockchain may also be known as the Distributed Leader Technology. It establishes a decentralized distribution chain, which provides access to everyone. The significant advantage of Blockchain technology is that it lessens the risk of fraud.
Working criteria of the Blockchain
With the information mentioned above, you get complete about the Blockchain. Now it is time to study its working pattern. Blockchain is a blend of three essential concepts. These concepts are:
So let’s discuss each concept briefly:
Each chain has various blocks, and further, each block includes the three essential elements.
- Data present in the block
- 32-bit whole number known as the nonce.
- Hash is a 256-bit number.
If the first block of the chain is created, nonce creates the cryptographic cash.
Miner is for creating the new blocks on the chain via a process known as mining. In the Blockchain, each block comes with a unique nonce and hash. It uses a special kind of software for solving the incredibly.
The Blockchain revolves around the concept of decentralization. There is no computer or any firm which can own the chain. It is considered as the distributed ledger via the nodes connects to the chain. Nodes may be electronic devices. It is fruitful in maintaining the blockchain copies.
So, the Blockchain consists of these three aspects. Furthermore, Blockchain is divided into different kinds of technology.
Types of Blockchain
There are mainly two kinds of blockchains that are private and public Blockchain. It includes various variations such as the consortium and hybrid Blockchain. Here is the information about the different types of Blockchain.
1. Public Blockchain
This kind of Blockchain is a non-restrictive and permission-less ledger system. If you can access the internet, you can sign in to the Blockchain. By this, you become part of the blockchain network.
2. Private Blockchain
It is opposite to the public Blockchain that is restrictive or permission Blockchain. The private Blockchain operates in the closed network. Additionally, it utilizes in the organization in which the selected members participate in this blockchain network.
Read more: Bitcoin runs on the blockchain protocol- a simple guide
3. Consortium Blockchain
It comes in the semi-decentralized type in which one more organization manages the particular blockchain network. More than one firm can act as the node in this Blockchain.
4. Hybrid Blockchain
It is a blend of private and public Blockchain. Further, it uses both features of Blockchain. With this network, users have an authority about who can use data store in Blockchain.
Read more: How To Invest Funds In The Market For Wealth Creation
In the end, these are some categories of Blockchain. Each type has several advantages and uses, which you need to know.