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Types of Blockchains and Distributed Ledgers

The Need for Blockchain Classification​

As blockchain technology developed, it became evident that there is no universal solution suitable for all tasks. Depending on goals, security requirements, transparency, and governance needs, different types of blockchain systems are used.

Classifying blockchains helps understand in which cases a particular architecture is appropriate.

Public Blockchains​

A public blockchain is an open network that anyone can join without prior permission. All data in such a blockchain is typically public and available for verification.

Key characteristics of public blockchains:

  • no centralized management,
  • high degree of decentralization,
  • open access to participation and data verification.

Examples of public blockchains include Bitcoin and Ethereum.

Private Blockchains​

A private blockchain is a network with restricted access where participants are predetermined. Such a system is typically managed by a single organization or consortium.

Main features of private blockchains:

  • access control for data and operations,
  • higher performance,
  • lower degree of decentralization.

Private blockchains are often used in corporate and institutional systems.

Consortium Blockchains​

A consortium blockchain occupies an intermediate position between public and private systems. Network governance is carried out by a group of organizations, each with specific rights and responsibilities.

This model allows combining:

  • distributed governance,
  • access control,
  • increased reliability compared to fully centralized solutions.

Distributed Ledgers (DLT) and Blockchain​

Blockchain is a specific case of a broader class of technologies called Distributed Ledger Technology (DLT).

Not all distributed ledgers use a chain of blocks. Some systems employ alternative data structures and consensus mechanisms optimized for specific tasks, such as high processing speed or data confidentiality.

Platforms and Ecosystems​

As technology developed, blockchain platforms emerged that focus not only on value transfer but also on code execution and creation of decentralized applications.

Examples of such platforms include:

  • Ethereum — for smart contracts and decentralized applications,
  • enterprise solutions based on Hyperledger,
  • experimental and specialized blockchain systems.

Each platform offers its own set of trade-offs between decentralization, security, and scalability.

Criteria for Choosing a Blockchain Type​

When choosing a blockchain system type, the following should be considered:

  • level of trust between participants,
  • data transparency requirements,
  • need for decentralization,
  • performance and scalability,
  • regulatory and legal requirements.

The effectiveness and sustainability of the system depend on the correct choice of architecture.

Brief Summary​

There are various types of blockchains and distributed ledgers, each designed to solve a specific range of tasks. Understanding the differences between public, private, and consortium systems allows for informed application of blockchain technologies in real projects.