Applications built on Ethereum run exactly as programmed without any possibility of downtime, censorship, or third-party interference. Bitcoin stands as a leader among cryptocurrencies, but a plethora of others also exist in the digital realm.
How many blockchains are there? In the ever-evolving sphere of blockchain technology, a pivotal aspect takes center stage—the categorization of blockchains into three distinctive types. These categories create rules for who can use the blockchain, how it’s controlled, and what it’s useful for. As we learn more about these categories, we’ll also find out how many blockchains are there in 2023?
Many Types of Blockchain
- Public Blockchain- Embracing Openness
- Private Blockchain- Precision through Controlled Access
- Consortium/Hybrid Blockchain- Harmonizing Openness & Control
- Ethereum’s Pervasive Impact- The Most Common Blockchain
1) Public Blockchain- Embracing Openness
Public blockchains are like open digital spaces where anyone can join. People worldwide can participate in transactions and decisions, making it a key aspect of how blockchain technology works. When we wonder how many blockchains there are for cryptocurrencies, it’s clear that public ones are quite common. Most of the time people invest in public blockchain. Anyone can join it as a note and make transactions from it.
It is also called a permissionless blockchain. If any note is a part of the public blockchain network, then the note must verify and validate the transactions. So that, the public blockchain network works. Bitcoin, a famous example, uses just one special way to keep track of transactions. This helps people from all over the world trade money safely and with honesty.
Advantages
- Anyone can join it.
- People work together socially.
- Every member has all access to data
Disadvantages
- Transaction speed is very low.
- It has problems with scalability.
2) Private Blockchain- Precision through Controlled Access
Unlike open public networks, private blockchains have limited access. These special blockchains are chosen by companies that want to use blockchain technology while keeping things under control. When we think about how many blockchains exist for cryptocurrencies, we also need to think about private ones.
In the world of cryptocurrencies, private blockchains are chosen by industries like finance because they ensure that only authorized people can take part in transactions, keeping sensitive information safe. This highlights how adaptable blockchain technology is, suiting various requirements.
This blockchain works in the restricted environment. People need to ask before they can be part of this blockchain. The organization that needs some selected participants in its blockchain, prefer this private blockchain. The group gives special stuff to the chosen people, like being clear, trustworthy, and safe. Ripple and R3 Corda are the examples here.
Advantages
- It works faster than public blockchain.
- There is less scalability issue
Disadvantages
- It is a centralized blockchain that opposes the concept of blockchain.
3) Consortium/Hybrid Blockchain- Harmonizing Openness & Control
In the world of Consortium or Hybrid Blockchains, there’s a mix of being open to some people and having rules in place. Different organizations work together using the same blockchain system. So this blockchain keeps properties of public and private blockchains.
This makes more blockchains everywhere and helps things stay steady. They allow specific groups to work together safely and adjust the rules as needed. They can perform easy transactions there however, some selected notes can verify and initiate the transactions.
These blockchains are good for tasks like taking care of supply chains and healthcare, where it’s crucial to share information safely. In the big world of blockchains, these hybrids have their own special place. It’s some examples are Macropolo and IBM Food Trust.
Advantages
- There are no problems when it comes to making it bigger or handling more.
- It is a secured and efficient blockchain.
Disadvantages
- Changing or improving the blockchain can sometimes make things harder.
4) Ethereum’s Pervasive Impact- The Most Common Blockchain
You know, how many blockchains are there in cryptocurrency. Now let’s talk about the most common one. Amid the diverse classifications, Ethereum’s dominance shines as the most prevalent and impactful. When it brought in smart contracts, it changed how blockchains work, causing lots of new things to be made.
What is the most common blockchain? Ethereum’s impact goes beyond just one kind of blockchain. Contemplating the number of Ethereum blockchains reveals complexity. How many Ethereum blockchains are there? Ether transactions flow through Ethereum’s mainnet, complemented by layer-2 scaling solutions and interconnected blockchains addressing scalability. Ethereum’s importance echoes in different areas, like making decentralized finance and NFT places possible.
Bitcoin works on one special blockchain, showing how a cryptocurrency can use only one type of blockchain.
The exact count of blockchains worldwide is a constantly shifting figure due to the dynamic nature of blockchain technology and the continuous emergence of new projects. By 2023, there are many different blockchains, each designed for specific things like businesses and different uses.
In 2023, blockchain trends emphasize scalability for increased transactions, interoperability for seamless data sharing across blockchains, and sustainability with energy-efficient consensus mechanisms. Decentralized finance (DeFi) and special non-fungible tokens (NFTs) are still growing, proving how useful blockchains can be in many different ways.
As we navigate the blockchain landscape of 2023, the categorization into Public, Private, and Consortium/Hybrid blockchains unveils blockchain’s multifaceted nature. The question of how many blockchains exist globally remains fluid due to continuous innovation.
From open Public Blockchains to careful Private and Consortium models, different types of blockchains help industries in special ways. Among all of this, Ethereum’s smart ideas influence how blockchains grow and change over time.
Final Thoughts