Decentralized trust

Blockchain is a decentralised technology used to collect data in interconnected blocks. Each blockchain builds on the previous blockchain and contains information linking it to the next blockchain. They consist of data, its own password and the password of the previous block. A key feature of the chain is its immutability. Once data has been entered into a block, it cannot be edited or deleted. Many different transactions can be stored in each blockchain.

There are three types of blockchain: public, private and federated (see below for a detailed description). What they have in common is a one-sided ledger, a network of nodes and a consensus mechanism.

Public blockchain

The overwhelming majority of existing blockchains are public blockchains, i.e. blockchains that are accessible to all. No governance entity can prevent access to a user wishing to join the network and interact with the consensus mechanism. A public blockchain is much more resistant to censorship than a private one. What also sets it apart is its high security-oriented approach. As for its disadvantages, these include problems with bandwidth, speed of transactions and the introduction of updates and improvements to the network (the last being due to the fact that it is rare that all participants agree on proposed changes).

The public blockchain is not influenced by government or the state, which allows it to maintain complete privacy. It is also pseudo-anonymous - as the public address of the opposing party to the transaction and its history is known. What also sets the public blockchain apart is its transparency. Here, all users can keep track of individual transactions in real time, making any fraud or embezzlement impossible. Another feature of the public blockchain is the openness to changes in the protocol. Each user has the possibility to interfere with the existing software and change it (as long as it is accepted by the other users). The characteristics of this type of blockchain also include a high level of security and trust. The key issue here is the method of reaching consensus. Examples of public blockchains are: Bitcoin, Ethereum and Litecoin. Material on these is offered by online learning with the Webinar Universe platform.

Private blockchain

A private blockchain is defined as one that sets strict rules indicating who can add new data to the chain and have insight into transaction history. Most often these are entities within the company or subsidiaries of the company. A private blockchain is centralised and based on a hierarchical control structure. It is also distributed - this type of network is maintained and managed by multiple nodes that hold a copy of the database. It is not, however, transparent and open. In practice, this means that no external party is able to observe the progress of transactions or individual network parameters unless they have been granted the appropriate rights. The main advantage of private blockchains is their ability to scale. They are capable of handling thousands of transactions per second. The disadvantage of this type of blockchain is the low level of security. The heavily dependent protocol means that they require a high level of trust. It is relatively easy to embezzle funds or manipulate data here. The categories that private blockchains fall into are: Monax, Multichain and Billon. Learning online with training platform. Learning online with it is extremely easy and convenient. Webinar Universe provides users with all the necessary materials. The training platform gives you full supervision of the training process, allowing you to effectively control your progress. The Webinar Universe platform allows you to gain valuable knowledge anytime, anywhere.

Blockchain technology is used in many different economic sectors. We can choose between its private, public and federated versions. The choice of a particular technology depends on the objectives an organisation wants to achieve with its help.