The main focus of today’s article is on the types of Blockchains available in the crypto market. We will discuss all of the forms thoroughly. However, before we take a nosedive, it is important we at least understand the basics of Blockchain technology and the fact that why there are different types of Blockchains!
In explaining this, we can also realize the advantages of blockchain technology and why corporations and developers embrace Blockchain as a Service (BaaS).
Blockchain is a decentralized, immutable ledger that makes it much easier to record transactions and manage assets in a corporate chain. The network provides the platform to record and exchange everything that has value eliminating risk, thus improving the efficiency of any transaction between two parties. The transaction does not require the involvement of a third party (such as a bank), hence decreasing friction and expenses. The participants must agree to the entry of transactions into the blockchain ledger. The encryption that underpins blockchains allows these transactions to be verified and ensures the records’ longevity.
The reason behind the need for different types of Blockchain
A blockchain fundamentally executes safe transactions or information transfer over a network. However, depending on the situation, people use blockchain and distributed ledger technologies or networks in different ways. For example, the digital money Bitcoin is traded using blockchain and distributed ledger technology. People from all over the world can become nodes, verify other nodes, and exchange bitcoins on this form of the blockchain network, making it a public network.