BCA_IBC_M1_14_Types of Blockchain_Introduction.pptx

On Blockchain concepts

1. Topic

2. Types of Blockchain: Introduction Topic

3. Identify and differentiate between various types of blockchain. Explain the key features of public, private, and consortium blockchains. Explain the advantages and disadvantages of each blockchain type. Recognize how hybrid and federated blockchains combine different features. Analyze the use cases of different blockchain types. Assess how the choice of blockchain type impacts security, transparency, and scalability. By the end of this session, you will be able to: Learning Objectives

4. Public Blockchain A fully decentralized and open blockchain where anyone can participate. Transparency: All transactions are publicly visible and verifiable. Security: Consensus mechanisms like Proof of Work (PoW) or Proof of Stake ( PoS ) ensure security. Examples: Bitcoin, Ethereum. Pros: Highly secure and transparent due to decentralized control. Open for anyone to join or view the network. Cons: Lower transaction speed and scalability due to decentralized consensus. High energy consumption (especially in PoW systems).

5. Private Blockchain A permissioned blockchain where only authorized entities can participate. Centralized Control: Governed by a single entity or consortium of organizations. Privacy: Transactions and data are accessible only to selected participants. Examples: Hyperledger, Ripple. Pros: Faster transaction speeds and more control over the network. More privacy and confidentiality compared to public blockchains. Cons: Less decentralized, which can lead to trust issues. Limited transparency.

6. Consortium Blockchain A partially decentralized blockchain managed by a group of organizations. Permissioned: Access is restricted to pre-approved participants who share control. Collaborative: A group of trusted organizations or entities collaborate on the blockchain. Examples: Energy Web Foundation, R3 Corda. Pros: Faster and more scalable compared to public blockchains. Suitable for industries or groups needing collaboration without full decentralization. Cons: Less decentralized, leading to potential conflicts between consortium members. The risk of a smaller group being compromised.

7. Hybrid Blockchain A combination of both public and private blockchains, balancing openness and control. Flexibility: Some data is open to the public while sensitive data is kept private. Governance: Can be controlled by both centralized and decentralized participants. Examples: Dragonchain, IBM Food Trust. Pros: Customizable to meet specific privacy and transparency needs. Provides flexibility for businesses and organizations. Cons: More complex to implement and manage due to mixed features. Potential for reduced overall security compared to fully decentralized models.

8. Federated Blockchain A blockchain where a group of organizations share control over the network. Governance: A pre-selected group of trusted nodes validates transactions. Use Case: Best suited for specific industries or collaborations where a central group of entities manages the blockchain. Examples: Stellar, Ripple. Pros: Highly efficient and scalable, suitable for business use. Governance is shared among trusted entities, leading to faster decision-making. Cons: Can be prone to manipulation or security breaches due to the smaller number of trusted nodes. Potentially less decentralized than other types of blockchains.

9. Session Recap In this session, we have discussed: The differences between various types of blockchain. The key features of public, private, and consortium blockchains. The advantages and disadvantages of each blockchain type. The use cases of different blockchain types. The choice of blockchain type impacts security, transparency, and scalability.