What are the Different Types of Blockchain Development Services?

The growth of Blockchain technology has highly influenced the working nature of various business organizations across the world. Due to its efficiency and simplicity, it is possible to transfer huge funds from one account to another in a few minutes. As an impact of this, it is easier to send and receive in any corner of the world.

In simple terms, Blockchain technology is a set of databases in which it is not possible to change the data after its execution. Here the whole database is managed by a series of computers and not by a single computer. The technology works strictly on cryptographic principles making it safer and protected technology for the transfer of funds than other available methods.

The Blockchain is typically a Distributed Ledger Technology (DLT) in which all the transactions are performed through an immutable cryptographic signature, distributed into various nodes. It is a decentralized database that is maintained by a team of various users.

Meaning of Decentralization in Blockchain:

Decentralization is an important part of blockchain technology. Here every person linked in the chain is independent and free to connect with each other, instead of being controlled by a centralized authority. This is helpful in protecting the network.

Because of this reason, there is a regular debate on the matter of centralization and decentralization. There are lots of industries that believe in centralized technology due to its use for a long time. The emergency of blockchain technology does not accept the concept of centralization and regard it as an obsolete way of working.

Meaning of Centralization:

It is a self-explanatory term where the whole data is under the control of a centralized authority. Let us for instance talk about social media platforms like Facebook, it works on a centralized system and records all the information provided by its users according to their permission. The centralization of activities minimizes the operational costs, helps in taking quick decisions and their implementation, and making the required changes in the network by one authority.

Types of Blockchain Development Services:

Due to its multifarious uses, Blockchain technology is widely accepted by most industries. As the working of each organization differs from others, there are different types of blockchain development services to meet their specific needs.

The commonly used blockchain development services are:

Public Blockchain Service:

As the name suggests it is accessible by everyone associated with your organization without any restriction. As it is controlled by all the associated members it cannot be controlled by a single person. This makes the data secure and immutable. The best examples of public blockchain services are Bitcoin, Ethereum, and Litecoin. Its benefits are:

1. Anyone can join the network

2. Helps in developing the trust between the users

3. No need for intermediaries

4. Secure and transparent.

Private Blockchain Service:

Here one single authority is allowed to control the whole network or only allowed members can operate the whole network. It is also known as allowed blockchain and only approved members have the freedom to access it. These members are selected by the responsible or the owners, and they are given permission by the developers at the time of developing the application. The network administrator is responsible for granting permission to the new users or cancelling the permission from the permitted users. This type of service is mainly used by private organizations for protecting their sensitive data and allowing only a few persons to access it. The most notable benefit of this service is that it is fast and measurable.

Consortium Blockchain:

This type of service is similar to decentralized service which is under the control of various entities. These entities can access and share any type of information within them. This type of service is mainly used by banks and government organizations.

The benefits of Consortium Blockchain are:

1. Customized properly and full control of the access.

2. More efficient than public blockchain.

3. Secure and scalable

4. Suitable for government organizations.

Hybrid Blockchain:

This type of service has a combination of both private and public blockchain. It is a multifarious service where an individual can save the data according to his preference. That means either openly or retaining its control individually.

1. No need to make it open for everyone

2. The permission to access the data can be changed according to conditions

3. Less risky

4. More scalable than public blockchain.

Summary: Every blockchain development service has its own benefits. Depending upon the nature of your organization’s need a blockchain development company will provide the necessary service.

Originally published at https://www.mrjourno.com.