Blockchain is a specific type of database that collects information together in groups, also known as blocks. Each data block is connected with the previous one, forming the blockchain which is a distributed register of operations carried out in a given network.
Blockchain is a transparent and durable system that is decentralized - doesn’t belong to any organization, company, or individual. Each transaction is handled by a network of peer-to-peer computers scattered across the world. Whenever a new data block is added to the blockchain, every computer on the network updates the structure to reflect the change.
Blockchain software development is a perfect solution for companies looking for secure information exchange and data sharing.
Types of Blockchain Networks
The consortium Blockchain is a system that is ‘semi-private’, it lies in the middle of fully open and centrally controlled. There’s more likely to be a trusted consensus, as multiple organizations have a stake in the outcome. As in open systems that is accessible to everyone and the private one that only allows one enterprise, consortium blockchain allows multiple organizations to function as validators. It provides multiple organizations a common to carry out transactions or relay information.
Access is granted to the Blockchain by choice; the private part of the blockchain is dealt and controlled by the ones in charge where the public part is left open for everyone. This public/private blockchain helps increases the security of the system, and provides consistency and validity for both the private and public. This model is used where the private part is kept internal and secured among known participants, and the part is left open for the participation of the public.
A "private Blockchain" refers to a blockchain whose blocks are written and controlled by an individual or single organization. Private Blockchains are typically used in enterprise solutions to solve business cases and underpin corporate software solutions. Private Blockchains are valuable for enterprises who want to collaborate and share data, but don’t want their sensitive business data visible on a public blockchain.
Public Blockchains are open source. They allow anyone to participate as users, miners, developers, or community members. All transactions that take place on public blockchains are fully transparent, meaning that anyone can examine the transaction details. Anyone can read a public blockchain, send transactions to it, or participate in the consensus process. Bitcoin and Ethereum are prominent examples of public blockchains.
Benefits Of Blockchain
Trust is directly shifted towards the blockchain die to its efficiency and reliability, so the involvement of any third-party becomes minimal to none.
Transaction histories are becoming more transparent through the use of blockchain technology. The data is no doubt more accurate and consistent, which gives users a sense of trust and accountability.
Eliminating the traditional, paper-heavy processes, which involved third parties definitely took more time than block-chaining ever will.
After a transaction is approves, it’s encrypted and linked to the previous transaction but also instead of saving the information into one system its stored across a network of computers which provides security.
Blockchain is programmable; process can be automated such as payment automation when condition met.
It eliminates the interference of any third-party, also reduces the costs that must be done on documentation for smooth transactions.