1. What are the current categories of blockchains?
2. What are the main differences between the three types of blockchains?
Public chain: open to everyone, anyone can participate;
Alliance chain: open to specific organizational groups;
Private chain: Open to individual individuals or entities.
01 public chain
A public chain is a blockchain that anyone in the world can read, anyone can send a transaction and the transaction can be validly confirmed, and anyone can participate in the consensus process. The consensus process determines which block can be Add to the blockchain and clarify the current state. Public chains are often considered to be "completely decentralized."
Characteristics of the public chain
1) Protect users from developers
Program developers in the public chain do not have the right to interfere with users, so the blockchain can protect users who use the programs they develop.
2) Low access threshold
Anyone with sufficient technical ability can access it, that is, as long as there is a computer that can be connected to the Internet, the access conditions can be met.
3) All data is public by default
Although all associated participants hide their true identity, this phenomenon is very common. They generate their own security through their publicity, where each participant can see all account balances and all their trading activities.
Public chain application
Public chains include Bitcoin, Ethereum, Superbooks, most altcoins, and smart contracts, where the ancestor of the public chain is the Bitcoin blockchain.
Ethereum is a new open blockchain platform that allows anyone to build and use decentralized applications running through blockchain technology in the platform. Like Bitcoin, Ethereum is not controlled by anyone and is not owned by anyone.
Ethereum is a programmable blockchain. Rather than giving users a set of pre-defined actions (such as bitcoin transactions), it allows users to create complex operations as they wish.
In this way, it can be used as a platform for many types of decentralized blockchain applications, including but not limited to cryptocurrency.
The Ethereum platform itself has no features and no value. Similar to programming languages, it is determined by entrepreneurs and developers. However, it is clear that some application types benefit from Ethereum's capabilities more than others. Ethereum is especially suited for applications that automatically interact directly between points or points to facilitate group coordination activities across networks.
In addition to financial applications, any application scenarios that require high levels of trust, security, and durability—such as asset registration, voting, management, and the Internet of Things—are largely affected by the Ethereum platform.
02 Private chain
A private chain is a blockchain whose write access is only in the hands of an organization. Read access or open to the outside world, or restricted to any degree.
What are the characteristics of the private chain?
1) The transaction speed is very fast
A private chain can trade faster than any other blockchain, even close to the speed of a regular database that is not a blockchain. This is because even a small number of nodes have a high degree of trust and do not require each node to verify a transaction.
2) Better protection for privacy
3) The transaction cost is greatly reduced or even zero
A completely free or at least very cheap transaction can be made on the private chain. If an entity controls and processes all transactions, they no longer need to charge for the job.
However, even if the processing of the transaction is done by multiple entities, such as competitive banks, for further example, for the same reason, they can process the transaction so quickly, so the cost is still very small; A full protocol between nodes is required, so few nodes need to work for any transaction.
4) Help protect its basic products from damage
It is this that allows banks and other financial institutions to embrace the private chain in the current environment. Banks and governments have vested interests in caring for their products, and the legal currency for transnational trade is still valuable.
Since the direct application of the public chain is to protect the new non-state currency like Bitcoin, which poses a devastating threat to the core profit stream or organization, these entities should avoid damage at all costs.
The application of the private chain?
The Linux Foundation, the R3CEVCorda platform, and the Gem Health Network's Hyperledger project are several different private-chain projects under development. In fact, from the perspective of the major international financial giants joining the R3 CEV blockchain program, financial groups are more inclined to embrace the private chain (here, the alliance chain).
R3CEV is a blockchain start-up company based in New York. The R3 blockchain alliance initiated by it has attracted 50 giant banks, including Wells Fargo, Bank of America, New York Mellon Bank, Citibank, etc. Ping An Bank of China joined the R3 Blockchain Alliance in May this year.
In April 2016, the R3 Alliance launched the Corda project, a distributed financial solution specifically for banks. Corda is a blockchain platform that can be used to manage and synchronize agreements between organizations.