Hey everyone, welcome back to the course. In this lecture, we are going to talk about different types of blockchain and we will categorize them into three different categories, which are public, private, and Consortium. We will see how these blockchain categories are different from each other. The first category of blockchain is the public blockchain. As the name suggests, this type of blockchain is available to all. In other words, public blockchains are for the people, by the people and off the people.

Anybody can connect to the blockchain, anybody can read and write data from the public blockchains. Moreover, there is no one in charge of the public blockchains most public blockchains have complex rules regarding the transaction confirmations and validations in order to protect them from the malicious sectors. All the decisions over the public blockchains are made using the complex consensus algorithms. Public blockchains are computationally costly because of the high usage and high hashing power. Some of the examples of public blockchains are the Bitcoin blockchain and aetherium blockchain. Bitcoin blockchain is the initial originator of the blockchain world.

It was introduced in 2009. aetherium blockchain is the one who gave the concept of smart contracts and opened a blockchain world for many possible implementations. The second category for blockchain is the private blockchain. As the name suggests, private blockchain is operated privately by an enterprise or an organization. Unlike public blockchains private blockchains are governed by an administrator or anchor who looks after all the required permissions. identities over the blockchain. The consensus is achieved as per the central in charge of the blockchain.

Moreover, the enterprise in charge of the chain can provide the mining rights to any of the authorized nodes as per their requirement. Compared to public blockchain, this is faster and cheaper, because you don't need to spend an enormous amount of energy and money to reach a consensus. As the parties who are providing the consensus are truthful to the system and authorized by the system. Private blockchains are less secure compared to public blockchain because only the authorized parties can join the network. Because the system doesn't require to maintain a high level of security. Some of the examples of private blockchain are the bank chain and muddy chain.

Bank chain is a private blockchain where all the banks are To provide a common KYC authorization for users. Medi chain is a private blockchain which is used for storing the patient health records, which are immutable and these are shared between different hospitals. The third category for blockchains is the consortium blockchain. We have seen that the public blockchains everything is open and on the other hand with private blockchains individual ownership is present for the enterprises and organizations. consortium blockchain is a mix of both the categories. We neither have the policies which are open to all, nor do we have the individual ownership consortium blockchains provide the network ownership as a Western entity.

In other words, we can say that a group of people or organizations control the consortium blockchains. This group will form the consortium Which will manage and maintain the complete blockchain network. Consortium. blockchain has the benefits of both public and private blockchain and avoids the limitations faced by these two categories. consortium blockchains are much faster than the public blockchains. Moreover, consortium blockchains reduce the single point of failure present with the private blockchains.

In other words, consortium blockchain is the best of both worlds. Some of the examples of the consortium block chains are our three blockchain and the energy web foundation blockchain. We have learned about the different categories of blockchain. Now let's see some of the significant differences between the public private and consortium blockchain. The consensus mechanism for public blockchains is determined by all the participating miners whereas in consortium and private blockchains Only the organization's or the selected few miners have the permissions to provide consensus. Public blockchains are open for all.

But restrictions are imposed over users in private and consortium blockchains. Moreover, the immutability for public blockchain is nearly impossible to tamper with. But on the other hand consortium and private blockchains are governed by a group of people or a single organization, where they might have the privileges to tamper with the blockchain data. The centralized nature is not present in public blockchains but with the consortium and private blockchains there might be some part of the system acting on a centralized nature. In the end, central organizations are governing the blockchain network. The efficiency of public blockchain is quite low because of the complex algorithms running behind it.

Whereas the consortium And private blockchains don't require complex security algorithms, which in turns provide high efficiency. Finally, the consensus providers for the public blockchain are permissionless. Whereas consortium and private blockchains need to provide permissions to specific nodes or computers, where they can act as the miners and provide consensus on top of the blockchain network. This lecture was all about the different categories of the blockchains. In the next lecture, we are going to discuss blockchain architecture. This will be a simple architecture demonstration, where we will see that how a typical internal blockchain structure looks like.

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