Four main types of decentralized or distributed blockchain networks.
Public Blockchain Network
Public blockchains require no permissions and anyone can join them. All members of such a blockchain have equal access to read, edit, and verify the blockchain.
Public blockchains are primarily used for exchanging and mining cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
Private Blockchain Network
An organization can control multiple private blockchains, also known as managed blockchains. The institution decides who can be a member and what permissions they have within the network. Private blockchains are only partially decentralized because they have access restrictions.
An example of a private blockchain is Ripple, a digital currency exchange network for businesses.
Hybrid Blockchain Network
Hybrid blockchain combines elements of private and public networks. Companies can build private, permission-based systems alongside public systems. With this approach, companies can control access to specific data stored in the blockchain while keeping the rest of the data public. The company uses smart contracts to allow public members to check whether private transactions have been completed.
For example, a hybrid blockchain could grant public access to digital currencies while keeping bank-owned currencies private.
Alliance Blockchain Network
Consortium blockchain networks are overseen by a group of organizations. Multiple pre-selected organizations share responsibility for maintaining the blockchain and determining access to data. Consortium blockchain networks are often preferred for industries where many organizations share common goals and can benefit from shared responsibilities.
For example, the Global Shipping Business Network Consortium is a non-profit blockchain consortium dedicated to digitizing the shipping industry and enhancing cooperation among maritime industry operators.
