A blockchain comprises a network. The various computers, called as nodes constitute a blockchain network. The task of looking after the network and storing the information is performed by different devices which are called peers.
This technology is ruling the businesses. The records are maintained in a distributed database and these are maintained securely. It is a system that can be saved effectively from the issues related to hacking.
The companies prefer blockchain development for the progress of their business. There are reputed companies which offer blockchain services. The services provided by these include blockchain consulting, blockchain engineering and blockchain operations related to this technology. This helps in securely running your business. It protects the sensitive data which is crucial for your organization.
Which Blockchain Network Suits Your Business?
Smart contracts exist in platforms which are based on blockchain. These are self-executing and the agreements which are made, between the two parties are written in coded form. The deals set with smart contracts cannot be done unless all the conditions are fulfilled.
If any party interferes it is referred to as a violation of the contract. These provide transparency and prevent frauds and so smart contracts are much in demand. There are different categories of blockchain networks. These can be chosen depending on your business needs.
The three main types are:
Public Blockchain Network
These networks are decentralized. The users can write, audit and most of the transactions offer transparency. The transactions can be reviewed in the blockchain. It can be accessed easily and no need for permission. There is no individual liability for managing this network.
There are decentralized systems like POW (Proof of work) and POS (Proof of stake) to do the verification for the transactions. These are desired by the business people as they do not have to maintain their trust in the third party.
Consortium Blockchain Network
A consortium is made by a group of companies. They make decisions for the working of the complete network. It differs from the public blockchain network because the access is granted, to only those companies that constitute the consortium.
The preselected companies decide with smart contracts if there is a need for adding something new to the blockchain. It is time saving, inexpensive and promotes reliability among the companies.
Private Blockchain Network
It belongs to an individual or a single company which has full-fledged control on the network, in terms of performing transactions, doing modifications. The write permission is given to one company, but read permission may be public.
There are restrictions laid on the access to the network. This guarantees privacy while doing transactions and is secure. It is one of the safest blockchain networks as compared to other networks.
Thus there are merits and demerits of each network. The choice can be made depending on your business requirements and needs. Private or consortium blockchain network is suitable for businesses which demand optimum privacy.
Nonetheless, if your business requires openness you can choose the public blockchain network. Think wisely when you choose networks so that you derive maximum benefit from these networks for your business.