New Microsoft PowerPoint Presentation.pptx
- 23. • A platform is a system that serves as a foundation for developing and running applications. • It often includes an operating system, hardware, software tools, and services that enable developers to create and deploy applications. • Technology refers to the tools, techniques, and systems used to accomplish specific tasks.
- 24. Different Types of Blockchain Technology? • There is no doubt that blockchain has evolved a lot in the last decade. It started with bitcoin, which offered public blockchain — the first type of blockchain. • We can also term bitcoin’s blockchain as the first generation of blockchain technology. • Right now, we are at a point where there are different types of blockchain technology – each one of them serves its purpose and solves a particular or a set of problems. • More so, many companies are using them in their company to leverage the benefits as much they can.
- 25. Why Do We Need Different Types of Blockchain? • When blockchain technology was introduced to the world, it was a public blockchain type with cryptocurrency use-case. • It is really hard to understand the intent of its creator, but in general, it provided the concept of decentralized ledger technology (DLT). • The DLT concept changed how we solve things around us. • It gave organizations the ability to work without depending on a centralized entity. • Distributed technology solves the drawbacks of centralization, but in itself brought a lot of other problems to solve when it comes to applying blockchain technology to different scenarios.
- 26. Different Types of Blockchain Technology
- 28. Public Blockchain • A public blockchain is one of the different types of blockchain technology. • A public blockchain is the permission-less distributed ledger technology where anyone can join and do transactions. • It is a non-restrictive version where each peer has a copy of the ledger. • This also means that anyone can access the public blockchain if they have an internet connection. • One of the first public blockchains that were released to the public was the bitcoin public blockchain. • It enabled anyone connected to the internet to do transactions in a decentralized manner. • The verification of the transactions is done through consensus methods such as Proof-of- Work(PoW), Proof-of-Stake(PoS), and so on. • At the cores, the participating nodes require to do the heavy-lifting, including validating transactions to make the public blockchain work. • If a public blockchain doesn’t have the required peers participating in solving transactions, then it will become non-functional. • There are also different types of blockchain platforms that use these various types of blockchain as the base of their project. • Examples of public blockchain: Bitcoin, Ethereum, Litecoin, NEO
- 29. What Are the Advantages? • Anyone can join the public blockchain. • It brings trust among the whole community of users • Everyone feels incentivized to work towards the betterment of the public network • Public blockchain requires no intermediaries to work. • Public blockchains are also secure depending on the number of participating nodes • It brings transparency to the whole network as the available data is available for verification purposes.
- 30. What Are the Disadvantages? • They suffer from a lack of transaction speed. It can take a few minutes to hours before a transaction is completed. • For instance, bitcoin can only manage seven transactions per second compared to 24,000 transactions per second done by VISA. • This is because it takes time to solve the mathematical problems and then complete the transaction. • Another problem with public blockchain is scalability. • They simply cannot scale due to how they work. • The more nodes join, the clumsier, and slow the network becomes. • There are steps taken to solve the problem. For example, Bitcoin is working on lighting the network, which takes transactions off-chain to make the main bitcoin network faster and more scalable. • The last disadvantage of a public blockchain is the consensus method choice. Bitcoin, for example, uses Proof-of-Work (PoW), which consumes a lot of energy. However, this has been partially solved by using more efficient algorithms such as Proof-of-Stake (PoS).
- 31. What Are the Use Cases? • Voting: Governments can do voting through public blockchain employing transparency and trust. • Fundraising: Companies or initiatives can make use of the public blockchain for improving transparency and trust.
- 32. Private Blockchain • private blockchain is one of the different types of blockchain technology. A private blockchain can be best defined as the blockchain that works in a restrictive environment, i.e., a closed network. It is also a permissioned blockchain that is under the control of an entity. • Private blockchains are amazing for using at a privately-held company or organization that wants to use it for internal use-cases. By doing so, you can use the blockchain effectively and allow only selected participants to access the blockchain network. The organization can also set different parameters to the network, including accessibility, authorization, and so on! • So, how is it different from a public blockchain? It is different in the way it is accessed. Otherwise, it offers the same set of features as that of the public blockchain, providing transparency, trust, and security to the selected participants. • Another major difference is that it’s kind of centralized as only one authority looks over the network. So, it doesn’t have a decentralized theoretical nature. There are also various types of blockchain platforms that use private blockchain as the base of their platform. More so, each one of them tends to be unique and offer different features. • In many cases, a private blockchain is considered permissioned blockchain. But the concept of permissioned blockchain is much broader as it can include public blockchain as well. • Examples of Private blockchain: Multichain, Hyperledger Fabric, Hyperledger Sawtooth, Corda