When we talk about what a blockchain is, we often use the phrase “electronic data book, the impossibility of changing which is guaranteed by distributed registry technology”. In the simplest sense, this is enough to describe the very principle of operation of blockchain systems, in which interconnected chains of files form something suitable for organizing and storing almost any data. But the blockchain is a bit more complicated than in the definitions described above. Its functionality is much more extensive and allows you not only to store something unchanged, but also makes the blockchain an ideal technology for labeling goods, creating digital currencies and much more. In this article, we will look at the main types of blockchains that can be used depending on the needs and tasks set for the implementation of reliable, fast, and functional digital projects.
Public blockchains are completely decentralized in the sense that no organization controls them, anyone can view records, and anyone can participate in reaching consensus. Any user can add entries to the public blockchain without asking permission from other users. As a rule, access to the blockchain source code is available to users and they have the opportunity to configure a full node on their local device to verify network transactions.
The public blockchain has access to the block (transaction) browser, available at any time and anywhere in the world. However, the identities of the people involved in the transactions are never disclosed. Open types of blockchains are characterized by a lower cost of developing decentralized applications and there is no need to turn to a centralized authority for server maintenance and administration. It is open blockchains that are considered the main competitors of existing business models, since they eliminate intermediaries – the main obstacle to conducting fast and inexpensive transactions.
In order to restrict those who can access data in the blockchain and change records in it, private types of blockchains implement the concept of privileges. In most cases, one organization owns the blockchain. She is also responsible for creating new blocks, eliminating the need for consensus algorithms and mining.
A private blockchain is a blockchain that is accessible only within a certain network, where there is only one administrator and a small number of nodes. Although a private blockchain can be useful for solving efficiency, security and fraud problems within traditional business systems, it lacks the most important characteristic – decentralization.
Hybrid types of Blockchains
Like private blockchains, in hybrid blockchains, access is provided only to a select few. All users participating in the hybrid blockchain agree with a pre-formed set of rules, and the work of the blockchain itself takes place on a small number of trusted servers.
Since only authorized users get access to copies of the blockchain, this type of blockchain can be called “partially decentralized”. An agreed group of nodes controls the consensus procedure, with the protocol dictating how many nodes must verify the block signature before it can be considered valid. Access to the blockchain registry can be provided to a wider range of people or kept secret for all users.
Hybrid blockchain has many advantages over the private. It has a higher scalability potential and has a higher transaction processing speed comparable to public types of blockchains.
It is obvious that private and hybrid blockchains are created and used mainly in closed systems of organizations, where confidentiality and data transfer speed are the main criteria for the feasibility of implementing a distributed registry.
Open blockchains are used to implement projects aimed at a large number of users. Their popularity and effectiveness is determined not only by the number of users, but also by the opportunities for further development and use for the implementation of various tasks. And the better designed such a blockchain is, the easier and simpler it is to modernize and improve, the more opportunities and prospects it opens up.
The Islamic Coin project, built on the halal Haqq blockchain, is an ideal system for creating blockchain systems based on Shariah rules. It has a Fatwa and is run by leading Muslim theorists and market leaders of Islamic finance. Issuing certificates confirming the possibility of using goods and products for the Muslim community on the Haqq blockchain is a completely new and most effective way to organize halal supply chains and sales of Shariah–approved goods and services.
Islamic Coin is a digital currency conforming to the norms of Islam and Shariah, functioning in its own blockchain Haqq, which means “Truth”. Already at the stage of closed sales, IslamicCoin aroused huge investor interest and was able to raise more than $ 200 million in just a few weeks. Unlike technically outdated Bitcoin and Ether, which have a lot of problems, IslamicCoin uses the full power of the most progressive blockchain technologies and is based on the most fair and reliable ideology and rules of conduct.
Successful investors choose ideologies, technologies and prospects based on something more than minor fluctuations in price charts. For almost 20 years of the existence of a new type of digital money, cryptocurrencies have not brought a drop of real value into this world, have not made people free, independent and happy. And this means that it’s time for a new type of finance based on responsible choices and new values!