Blockchain Networks are where the transactions occur and allow applications access to ledger and smart contract services. If you are wondering what smart contracts are, they are contracts or agreements stored on the blockchain that cannot be changed or modified.
However, it can be quite confusing to the uninitiated. Blockchain technology contains a swirling mess of information. But with the help of this article, you can get that crucial first step that will no doubt help you navigate the world of Blockchain networks.
Classification of Blockchain Networks
To explain further, Blockchain Networks are maintained by a shared community of users, developers, and operators. Incentives or rewards play a huge role in the overall process of Blockchain networks as they boost both transaction speeds and network security. At the moment, there are four major types of Blockchain Networks, namely:
1. Public Blockchain Networks
The Public Blockchain Networks can be viewed, accessed, and interacted with by anyone with a connection to the internet. A Public Blockchain Network offers more security against cyberattacks with every participant present. In exchange for these, the blockchain network lacks anonymity, and transactions are slower due to the amount of data verification done.
2. Private Blockchain Networks
In contrast, Private Blockchain Networks are managed by one central entity, and permission must be secured for certain functions. An invitation is required to be a participant, and there are network protocols to follow. Organizations or enterprises mainly use Private Blockchain Networks and can process transactions faster.
3. Hybrid Blockchain Networks
A Hybrid Blockchain Network enjoys the advantages of both Public and Private Blockchain Networks. This type of Blockchain Network allows for a setup of a private, permission-based system existing alongside a public, permissionless system. Authorized members of a Hybrid Blockchain Network can make transactions public for verification but still cannot alter records.
4. Consortium Blockchain Networks
Consortium Blockchain Networks are similar to Hybrid Blockchain Networks because they have public and private blockchain characteristics. Only a Consortium Blockchain has multiple organizations committed to maintaining the network and has more decentralization than private blockchains.
Benefits of the Blockchain Networks
Gaming Industry
Blockchain networks are also utilized in other industries. In the gaming industry, a prominent example is WEMIX. WEMIX started in 2019 and is the blockchain network created by WEMIX Pte. Ltd. WEMIX Pte. Ltd., is a subsidiary of WEMADE, a gaming giant in South Korea. One of their games, MIR4, became the world’s first successful MMORPG to incorporate a blockchain economy after its international release and pioneered the Play & Earn phenomenon.
WEMIX PLAY, the gaming platform of WEMIX is servicing over 30+ games and over 9 million registered wallets. Blockchain games provide more transparency and allows gamers ownership of in-game assets, improving the overall experience of gaming itself.
Finance Industry
Blockchain technology has also positively resulted in the financial industry. When blockchain is used for recording transactions, they cannot be altered, reducing the risk of being subjected to criminal activity. A feature that provides security for individuals or companies when conducting financial transactions.
One well-known example of Blockchain’s influence in the financial industry is the digital currency known as Bitcoin. With the help of Bitcoin, transactions between two parties can be done without the help of banks. Meaning the possibility of bankless transactions is already in the works.
Supply and Logistics Industry
In an industry like Supply and Logistics, where transparency and visibility are desired, blockchain technology lessens the risk of fraud because it provides authorized parties with much-needed visibility over supply chain activities. Furthermore, because all transactions are recorded, errors can be easily traced, allowing for smooth and swift resolution.
As stated earlier, blockchains add another layer of security for supply chains because transaction records are irreversible. This feature brings peace of mind to all parties involved as the risk of loss is greatly lessened.
Is Blockchain Technology Worth the Investment?
Blockchain technology applications seem limitless and will only expand in the future. As of the moment, plenty of companies and organizations are adding the application of blockchains for their products and services. Soon enough, the increasing interest in and experimentation with blockchain technology will make it a topic of interest for all business discussions.
