What Is Blockchain Used For? What Are The Types Of Blockchain?

Blockchain, a decentralized ledger technology that secures and manages assets in a corporate network, has revamped almost every industry, today.

Individually, the technology is evolving but at the same time, it is helping other sectors in their growth.

The technology has many more potential use cases other than processing transactions securely and efficiently throughout the network. Let’s have a look at its use cases in different industries:

Different Use Cases Of Blockchain Technology

1. Capital Market:

The system based on blockchain technology has the ability to improve capital markets.

In the year 2015, McKinsey published a report, specifying the benefits of blockchain technology in the capital market:

• Faster clearing & settlement
• Consolidated audit trail
• Operational improvements

2. Money Laundering Protection:

The encrypted database of the network helps the industries in combating crimes related to money laundering.

3. Supply Chain Management:

Blockchain technology linked with supply chain management enables accurate asset tracking, offers transparency into the provenance of consumer goods, and enhances the license of the product.

4. Voting:

The voting process can become more accessible and secure with blockchain technology.

Blockchain has a distributed ledger of transactions shared throughout the network, which makes it nearly impossible for hackers or spammers to modify the data. As a result, it becomes easier for the officials to tally votes more efficiently and effectively.

5. Cybersecurity:

While offering services to cybersecurity, blockchain removes the risk of a single point of failure and offers end-to-end encryption and privacy.

Now that we have seen a few of the use cases of Blockchain Technology, let’s know which type of blockchain technology is helping the industries.

Different Types of Blockchain Technology

The underlying technology supporting Cryptocurrency was a Public Blockchain. It helped the industries in resolving the shortcomings of centralization. However, the upcoming developers later did realize that the Distributed Ledger Technology or DLT needs a modification. Because when applied in certain scenarios, the outcome of technology was not the same as everyone expected.

As developers started resolving the use cases, private blockchain came into existence. This new solution was completely dedicated to those parties, who are actually involved in the activity.

After the private blockchain, two other kinds of solutions were introduced, they are consortium blockchain and hybrid blockchain.

1. Public Blockchain

As the name suggests it is a public network, anyone can join this blockchain and see the information available on the network. It is best for those organizations that promise trust and transparency to their audience. But at the same time, this network is not for private sector businesses, as it can’t keep the data private.

2. Private Blockchain Network

It is just the opposite of a public network. It secures the data and is best for private organizations and businesses around the world. This network is centralized in nature, which means organizations can control it without revealing their information.

Along with providing all key features of blockchain technology, this network helps private organizations in building trust among their audience through immutability and security.

3. Consortium Blockchain Network

Unlike private and public blockchain networks, this consortium blockchain is managed by a group of organizations. It is neither centralized nor decentralized, this blockchain network is just pre-selected nodes, which is considered to be a good blockchain network for the supply chain management.

4. Hybrid Blockchain Network

This blockchain network has features of both private and public blockchain networks, but compared to them, this network has minimal disadvantages.

Conclusion

Each blockchain network that we have talked about has its own advantages and disadvantages. It depends on the businesses and organizations to wisely choose the networks for themselves and attain as much benefit from them as they can. And currently, the technology is in its budding phase, so we can expect more new innovations in this technology.

If you are looking for blockchain development services and assistance, please reach out to our blockchain experts.