Blockchains are classified into four types. These are their names:
Blockchain Private Networks
Private blockchains run on closed networks and are best suited to private businesses and organizations. Companies can use private blockchains to tailor their accessibility and authorization preferences, network parameters, and other critical security features. A single authority manages a private blockchain network.
Blockchain Public Networks
Bitcoin and other cryptocurrencies arose from public blockchains, which also aided in spreading distributed ledger technology (DLT). Public blockchains also contribute to eliminating specific challenges and issues, such as security flaws and centralization. DLT distributes data across a peer-to-peer network rather than storing it in a single location. A consensus algorithm is used to verify the authenticity of the information; proof of stake (PoS) and proof of work (PoW) are two commonly used consensus methods.
Blockchain Networks with Permissions
Permissioned blockchain networks, also known as hybrid blockchains, are private blockchains that grant special access to authorized individuals. Organizations typically set up these blockchains to get the best of both worlds. It enables better structure when determining who can participate in the network and which transactions can be made.
Consortium blockchains, like permissioned blockchains, have both public and private components; however, multiple organizations will manage a single consortium blockchain network. Although these blockchains are more challenging to set up at first, they can provide greater security once operational. Furthermore, consortium blockchains are ideal for collaboration among multiple organizations.