Blockchain: Deep Dive — Fundamentals 101
By Atharva on The Capital
Everyone around is going crazy about this new buzzword in the market — Blockchain, now more than ever. There’s a lot of speculation about its future and how it will affect the economies around the globe. Undoubtedly blockchain is a rising star and is already disrupting the industry, but what exactly is a blockchain?
BLOCKCHAIN ≠ BITCOIN
Bitcoin is an application of blockchain and not the blockchain itself. It was invented by the mysterious pseudonymous developer Satoshi Nakamoto in 2008. It was the first-ever created cryptocurrency that uses cryptography hash function for its encryption. We’ll talk about Bitcoin in detail in the upcoming articles.
Blockchain is a complex amalgamation of existing technologies mixed in the right proportions to form a decentralized system of transactions.
In other words, blockchain can be defined as a series of blocks of immutable data, encrypted using hashing algorithms connected to form a chain of blocks that are publicly distributed among every user on the network and has no single authority governing over it.
Types of Blockchain
- Public Blockchain
A public blockchain is a permissionless blockchain and is accessible to everyone on the internet, i.e anyone can participate in the network and carry out a transaction as well as become the validator.
Eg- Bitcoin, Ethereum.
- Private Blockchain
A private blockchain is a restricted blockchain and requires the invitation from the network administrators to join the network.
Eg- Hyperledger Fabric, Corda.
- Consortium Blockchain
A consortium blockchain is a semi-decentralized blockchain. It has restrictions as that of a private blockchain but works across different organizations.
Eg- Hyperledger, Quorum.
- Hybrid Blockchain
A hybrid blockchain makes the best of both worlds. The nodes or the users of the network can manage access control for the data.