When Satoshi Nakamoto released the whitepaper Bitcoin: A Peer to Peer Electronic Cash System in 2008, which described Bitcoin, blockchain technology made its public debut.
Blockchain, Bitcoin’s technology, has become one of the largest breakthrough technologies today with potential impacts for all industries, from finance, manufacturing, and education. The key features blockchain are decentralization, accountability and safety. This makes the technology to be the perfect tool in the enhancement of operational efficiency and considerably, saving expenses. It has grown in popularity over time, which makes it somewhat important in learning the basic of its architecture; what makes it work. This is a brief on what you need to know on the architectural structure of blockchain.
There are basically three types of architectural structures as far as blockchain is concerned.
Public Blockchain Architecture
A Public Blockchain is a blockchain without permission. Anyone can join the blockchain network, so with a public blockchain they can read, write, or participate. Public blockchains are decentralized, no one controls the network, and they are secure in that once validated on the blockchain, data cannot be changed. The public blockchain is one where anyone can write data to the blockchain, and that data can be read by anyone else. Public blockchain platforms like Bitcoin, Ethereum, Litecoin tend to get talked a lot right now as they are examples of technology built on the public blockchain architectural design.
Private Blockchain Architecture
A Private Blockchain, on the other hand, is an authorized blockchain. They are also called the Permissioned or Enterprise Blockchains. Generally, companies and enterprises who operate on this platform are those that a certain amount of security, privacy, compliance, performance, and many of the properties which can be provided by a private blockchain. Private Blockchain is a little bit of the personal end of the spectrum. People who use the blockchain want to monitor who can write data and who can read the data. And to do this, identity is the first step. It is hard, if not impossible, to define what data they can commit to the directory and what data they can consume in the repository if a user’s identity is not known.
Consortium Blockchain Architecture
If different organizations operate a blockchain together, then that is a consortium blockchain. The participating companies need also to be involved in consensus and decision-making processes in the chain, in order to be a Consortium and not a private chain. Technological solutions such as parity allow for consortium chains to be readily implemented. However, it is essential that the partners concerned control the consortium in a balanced way.