Types of Block Chain and THEIR comparative analysis
Submitted by:
Group Members
Mahum Fakhar 20101009-030
Qasim Gillani 20101009-025
Syed Nisar Shah 20101009-097
University of Sialkot
Sialkot
Types of Blockchain and their Comparative analysis
Blockchain, in the world of IT, can be defined as a system of several interconnected computing
devices joined in a peer-to-peer setup on which the transaction records of a cryptocurrency are
maintained. The transaction information recorded in such a way makes it almost impossible to
unethically edit or hack and that basically is the primary purpose of implementing the blockchain
system. It works on a Distributed Ledger Technology i.e., in the accounts’ perspective, to
understand it even more clearly, it can be said that blockchain is a ledger of cryptocurrency
transactions maintained digitally that is recurred and distributed across the entire network. The
primary purpose of the blockchain technology was to give way to a free and available mean of
transferring funds among individuals without having the need of an intermediary institution e.g.,
a bank.
In this technology, a transaction made digitally is acknowledged by all or majority nodes on the
peer-to-peer network.
Technologically, the blockchains are divided into three major categories:
1. Public Blockchains:
Public blockchains, as evident from the name, are those blockchains
that require no permissions i.e., they are permissionless, open to everyone on the internet, which
means that a transaction made can and may be accepted by any user that is presented on the
network the blockchain is running on. It allows all the users of all categories to be a part of the
network and validate the transactions. A public blockchain fulfills the basic agenda of replacing
banks with this technology in the complete manner as it gives equal authority to every user
across the entire network, thus, providing greater security and command over their accounts.
Examples are:
Bitcoin
Ethereum
Litecoin
Munero
2. Private Blockchains:
Such blockchains are made and run specifically for or by an
organization that works on keeping the data not shown to the public but to their colleagues only.
In such a blockchain, the transactional rights are open to only those individuals who are on the
same network that the blockchain is on, maintaining a organizational environment.
Examples are:
Multichain
3. Hybrid Blockchains:
Hybrid blockchains provide an intermediary way between the
public and private types and focus on extracting the best from both the types. In simple words,
hybrid blockchain incorporates both the permissionless quality of public blockchains and
permissioned quality of private blockchains by providing multilevel privacy policies to make
sure everyone gets what he wants to have.
Examples are:
4. Consortium Blockchains:
A consortium blockchain is a type of blockchain technology that
is federated i.e., a blockchain in which the participants who are eligible for making rules of the
business are preselected. It is a blockchain in which the access is public, but the rights are not
equally dispersed or distributed among all the participants, rather, they are preselected and given
the special privileges.
Comparative analysis of the types of Block Chain
Sr. No Public Private Hybrid Consortium
Blockchain Blockchain Blockchain Blockchain
This blockchain This blockchain is This blockchain This blockchain is not
is not permissionless combines the permissionless but in a
permissionless and is owned by a qualities of both way that the users
single permitted and having the permission
[1]
organization. permissionless are pre-selected and
blockchains may or may not belong
to the same
organization.
This blockchain This blockchain is This blockchain is This blockchain is
is completely centralized and hybrid centralized but does
decentralized run by a single not have the limitation
organization to be regulated by a
[2]
single organization.
This is centralized
multi organization
blockchain.
Being Private Hybrid makes it Consortium
permissionless, blockchains are easy for every blockchains, being a
anonymous regulated individual user to regulated system is
users can sign blockchains manage the less prone to malware
[3] up and this becoming less permissions for as all the users
could prove to prone to malwares himself by connected on it are
become as all users are selecting the identified.
malicious identified and account type that
trusted. suits him best.
Works on Proof Works on Voting Works on both the Works on Voting or
of Work or Multi-Party technologies. Multi-Party Consensus
[4]
Consensus algorithm.
algorithm.
Large energy Lower energy Moderate energy Lower energy
[5]
consumption consumption consumption consumption
[6] No finality Enable finality Optional Enable finality
Public Private The approval time Consortium
blockchains, blockchains of a transaction blockchains require
being require lesser time depends upon the lesser time (in
ungoverned, (in milliseconds) type of transaction milliseconds) for the
give longer for the approval of made. approval of
transaction transactions. transactions.
[7] approval
frequency, e.g.,
in bitcoins, a
transaction may
take up to 10
minutes or more
to be approved
This The USP of this The USP of this The USP of this
blockchain’s blockchain is that blockchain is that blockchain is that it is
USP is that it is it is cost friendly. it is cost friendly. cost friendly. Usually
independent of Usually being Usually being being governed by
the business governed by some governed by some some government
[8] models and no government government organization, the
middleman is organization, the organization, the transaction costs can
needed to make transaction costs transaction costs be radically reduced.
transaction can be radically can be radically
between two reduced. reduced.
parties
Lesser More More More Transparency
[9]
Transparency Transparency Transparency
Higher data Less data Less data Less data redundancy
[10]
redundancy redundancy redundancy
The consensus The consensus The consensus The consensus
algorithms algorithms algorithms algorithm followed
[9] followed are followed are: followed are: here is PBFT
PoW, PoS, PBFT, RAFT PBFT, RAFT
DPoS
The nature of The nature of Hybrid Consortium
public private blockchains can be blockchains are Private
[10] blockchains is blockchains is both Open and or Public and
Open and Closed Closed in nature. Permissioned.
Decentralized
Document Supply chain, real Real estate and Finance, supply chain
[11] validations and estate, and asset healthcare sector and research work
IoT operations ownership
Independent in Fully controlled Controlled Controlled access and
nature with full access access and highly scalable in
[6]
transparency security nature
and trust
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[Online]. Available: [Link]
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[Link]
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