Did you know that global spending on blockchain solutions will reach $11.7 billion in 2022?
Blockchain technology is a bit confusing, right?
You’re not alone. Even people who have been working in the blockchain industry for years sometimes find it difficult to understand all of the different types of blockchains that exist.
But don’t worry. Keep reading because we created this guide to help make things a little bit more clear.
In it, we outline the many different types of blockchain networks that are out there today, as well as what each one is used for.
Public Blockchains
These are open-source networks that anyone can join. The best-known example is the cryptocurrency bitcoin, which uses a public blockchain to track all transactions.
Other public blockchain networks include Ethereum, Litecoin, and Monero.
Private Blockchains
Also known as permission blockchains, these networks restrict access to only certain users. They’re often used by businesses to share data internally and can be faster and more efficient than public blockchains.
Consortium Blockchains
A consortium blockchain is a hybrid of the public and private models. It’s usually overseen by a group of institutions, each of which has its node on the network.
An example is R3CEV, a consortium of over 70 financial institutions that are working on developing blockchain technology for the banking industry.
Hyperledger Fabric
Hyperledger Fabric is an open-source blockchain framework that was developed by the Linux Foundation. It’s designed for use in business settings and supports both private and consortium blockchains.
Ethereum
Ethereum is a public blockchain network that offers its cryptocurrency, ether. It’s unique in that it allows users to create decentralized applications (apps a) on top of its blockchain.
Ethereum is also working on a new version of its network, called Ethereum 2.0, which is designed to be more scalable and efficient.
Bitcoin Cash
Bitcoin Cash is a fork of the original bitcoin blockchain. It was created in August 2017 to improve upon bitcoin’s scalability issues. Bitcoin Cash has since become one of the largest cryptocurrencies by market cap.
Litecoin
Litecoin is a fork of the bitcoin blockchain that’s designed to be faster and more efficient. It uses a different hashing algorithm (Scrypt) than bitcoin, which makes it better suited for certain mining rigs.
Zcash
Zcash is another privacy-focused cryptocurrency that offers users the option of “selective transparency.” This means that users can choose to share some information about their transactions or keep everything completely private.
Ripple
Ripple is a blockchain network that’s designed for use in the financial industry. It uses a unique consensus algorithm that allows for faster and more efficient transactions.
Ripple also has its cryptocurrency, XRP, which is used to facilitate cross-border payments.
NFTs
NFTs, or non-fungible tokens, are a type of cryptocurrency that represents a unique asset. You can NFTs to represent anything from digital art to in-game items.
One of the most popular platforms for buying and selling NFTs is Ethereum. To learn more about the different types of NFTs, check out this NFT marketplace.
Want to Learn More About These Types of Blockchain?
While there are many different types of blockchain, they all have the same goal in mind to create a more secure and transparent world. We’ve talked about some of the most popular blockchain networks today.
Be sure to check out our blog for more articles like this.
