Types of Blockchain
With the development of the blockchain industry, it becomes increasingly important to establish customized chains for specific scenarios. Different types of blockchains for specific purposes are hence created.
Introduction
As all these technologies are still developing, there is no precise definition of public chains or private chains, nor are there clear boundaries for different layers. The following classifications and explanations are given based on public opinions.
Public chains & private chains
Most public chains are completely open; everyone can initiate transactions freely
Public chains refer to the blockchain networks that anyone can participate; they are the mainstream of blockchain networks in the market. As public chains are usually the basic layer of a blockchain, the term Layer 1 is used instead in multi-chain and roll-up scaling solutions that rely on the security of the mainnet.
The public chain is open to everyone, allowing everyone to freely access, send, receive and verify transactions on it; the consensus mechanism is used to verify the legitimacy of the data, and the nodes assist in adding the correct transactions to the ledger to obtain cryptocurrency rewards.
Private chains are usually managed centrally by a single organization or institution
A private chain, or private blockchain, refers to the blockchain network that is managed by a single organization or a group of people. It is not open to the public. Only authorized users can access or edit the blockchain network ledger.
Although the private chain is the same as the public chain in terms of peer-to-peer interaction, its Identity and Access Management (IAM) system makes it less possible to become a decentralized blockchain network.
A private chain usually runs on small networks within a company or an organization; only authorized nodes can verify its transactions and update ledgers. A private chain is very efficient; only a few nodes participate in maintaining the operation of the network, meaning that a consensus can be reached in a shorter time to confirm the transaction. In terms of scalability, the performance of the private chain is also significantly better than that of the public chain. Enterprises can easily expand or reduce the size of their network according to their own needs.
The non-transparent nature of the private chain increases the trust cost of users. In addition, due to its centralized nature, if one of the nodes gains access to the central management system of the network, it can hack all nodes, steal data and destroy the blockchain network. Further, the centralized nature of private chains runs counter to the decentralized vision of blockchain technology, making it difficult to meet the general expectations of the community for the blockchain vision.
What is Layer 1
Layer 1 is the base layer of the blockchain that provides the infrastructure needed to manage, store and process transactions.
Layer 1 is designed to maintain the “ledger consistency” and “transaction finality” of the blockchain, allowing nodes to record data that is immutable and to reach consensus in a cryptographic manner.
Most layer 1 has native tokens, each with its own advantages and characteristics
Most Layer 1 blockchain networks have their own native tokens, which can be used to pay transaction fees. Nodes can obtain rewards by verifying transactions on the chain through the consensus mechanism. This is currently the most popular blockchain category.
Each Layer 1 (public chain) has their own characteristics. For example, Flow focuses on introducing mainstream IP to boost the NFT ecosystem; Cosmos is committed to creating the “Internet of Blockchains”; Polygon is compatible with the programming language of Ethereum; the high-performance public chain Solana can load up to 60,000 transactions per second; Avalanche is a blockchain that is both scalable and interoperable.
What is Layer 2
Layer 2 is the second layer of the blockchain. It is built on top of the base layer and is responsible for providing additional features to the blockchain network.
Layer 2 solutions are designed to improve the scalability, privacy, and other capabilities of blockchain networks. Layer 2 is typically built on smart contracts, aiming to facilitate the transfer of value and data between users on a blockchain network.
Layer 2 is based on the security of the main chain and introduces better scalability
Layer 2 generally lags behind Layer 1 in terms of security and decentralization, but it leverages the advantages of the main chain to develop better scalability, driving the blockchain ecosystem to support more user needs and applications.
At present, Ethereum-based Layer 2 projects are considered to have great potential. Among them are Optimism and Arbiturm which use optimistic roll-up and zkSync which adopts zk-rollup.
These protocols share the security of Ethereum to allow faster and cheaper execution of transactions. However, the roll-up technology is still in its early stages. At present, no one can confirm that the technology is 100% secure. But as the cooperation between the project teams and community developers deepens, these projects are sure to progress continuously.
key takeaways
Most mainstream blockchains are completely open, allowing anyone to join, access and transfer data.
Layer 1 blockchain is still the mainstream, responsible for storing the most important information. Popular Lay 1 blockchains include Ethereum, Solana, Cosmos, etc.
Layer 2 is a scalable solution for Layer 1. For example, Optimism, Arbiturm, and zkSync are Layer 2 projects that use different consensus structures and algorithms, but all are based on Ethereum.
Main video
Related articles
Lição 1:What is blockchain
Lição 2:How does Blockchain Work?
Lição 3:Blockchain trilemma : scalability, decentralization, security
Lição 4:Types of Blockchain
Lição 5:The Security of Blockchain
Lição 6:Revolutionary applications and innovative scenarios
Types of Blockchain
With the development of the blockchain industry, it becomes increasingly important to establish customized chains for specific scenarios. Different types of blockchains for specific purposes are hence created.
Introduction
As all these technologies are still developing, there is no precise definition of public chains or private chains, nor are there clear boundaries for different layers. The following classifications and explanations are given based on public opinions.
Public chains & private chains
Most public chains are completely open; everyone can initiate transactions freely
Public chains refer to the blockchain networks that anyone can participate; they are the mainstream of blockchain networks in the market. As public chains are usually the basic layer of a blockchain, the term Layer 1 is used instead in multi-chain and roll-up scaling solutions that rely on the security of the mainnet.
The public chain is open to everyone, allowing everyone to freely access, send, receive and verify transactions on it; the consensus mechanism is used to verify the legitimacy of the data, and the nodes assist in adding the correct transactions to the ledger to obtain cryptocurrency rewards.
Private chains are usually managed centrally by a single organization or institution
A private chain, or private blockchain, refers to the blockchain network that is managed by a single organization or a group of people. It is not open to the public. Only authorized users can access or edit the blockchain network ledger.
Although the private chain is the same as the public chain in terms of peer-to-peer interaction, its Identity and Access Management (IAM) system makes it less possible to become a decentralized blockchain network.
A private chain usually runs on small networks within a company or an organization; only authorized nodes can verify its transactions and update ledgers. A private chain is very efficient; only a few nodes participate in maintaining the operation of the network, meaning that a consensus can be reached in a shorter time to confirm the transaction. In terms of scalability, the performance of the private chain is also significantly better than that of the public chain. Enterprises can easily expand or reduce the size of their network according to their own needs.
The non-transparent nature of the private chain increases the trust cost of users. In addition, due to its centralized nature, if one of the nodes gains access to the central management system of the network, it can hack all nodes, steal data and destroy the blockchain network. Further, the centralized nature of private chains runs counter to the decentralized vision of blockchain technology, making it difficult to meet the general expectations of the community for the blockchain vision.
What is Layer 1
Layer 1 is the base layer of the blockchain that provides the infrastructure needed to manage, store and process transactions.
Layer 1 is designed to maintain the “ledger consistency” and “transaction finality” of the blockchain, allowing nodes to record data that is immutable and to reach consensus in a cryptographic manner.
Most layer 1 has native tokens, each with its own advantages and characteristics
Most Layer 1 blockchain networks have their own native tokens, which can be used to pay transaction fees. Nodes can obtain rewards by verifying transactions on the chain through the consensus mechanism. This is currently the most popular blockchain category.
Each Layer 1 (public chain) has their own characteristics. For example, Flow focuses on introducing mainstream IP to boost the NFT ecosystem; Cosmos is committed to creating the “Internet of Blockchains”; Polygon is compatible with the programming language of Ethereum; the high-performance public chain Solana can load up to 60,000 transactions per second; Avalanche is a blockchain that is both scalable and interoperable.
What is Layer 2
Layer 2 is the second layer of the blockchain. It is built on top of the base layer and is responsible for providing additional features to the blockchain network.
Layer 2 solutions are designed to improve the scalability, privacy, and other capabilities of blockchain networks. Layer 2 is typically built on smart contracts, aiming to facilitate the transfer of value and data between users on a blockchain network.
Layer 2 is based on the security of the main chain and introduces better scalability
Layer 2 generally lags behind Layer 1 in terms of security and decentralization, but it leverages the advantages of the main chain to develop better scalability, driving the blockchain ecosystem to support more user needs and applications.
At present, Ethereum-based Layer 2 projects are considered to have great potential. Among them are Optimism and Arbiturm which use optimistic roll-up and zkSync which adopts zk-rollup.
These protocols share the security of Ethereum to allow faster and cheaper execution of transactions. However, the roll-up technology is still in its early stages. At present, no one can confirm that the technology is 100% secure. But as the cooperation between the project teams and community developers deepens, these projects are sure to progress continuously.
key takeaways
Most mainstream blockchains are completely open, allowing anyone to join, access and transfer data.
Layer 1 blockchain is still the mainstream, responsible for storing the most important information. Popular Lay 1 blockchains include Ethereum, Solana, Cosmos, etc.
Layer 2 is a scalable solution for Layer 1. For example, Optimism, Arbiturm, and zkSync are Layer 2 projects that use different consensus structures and algorithms, but all are based on Ethereum.
Main video
Related articles