How Many Blockchains Are There in 2023?
Blockchain technology has witnessed a tremendous rise in popularity and adoption over the years.
As of 2023, there are over 1,000 blockchains in circulation, catering to a wide range of industries and applications.
These blockchains can be categorized into four major types: public, private, consortium, and permissioned. Each type serves different purposes and appeals to different clientele based on their specific needs and requirements.
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The Four Major Types of Blockchains
Public Blockchain Network
A public chain network is a permissionless and decentralized network that allows anyone with an internet connection to access, download, and join the blockchain as an authorized node.
Cryptocurrency exchange and mining often find application in this type of chain.
Public blockchains, such as Bitcoin and Ethereum, rely on a consensus mechanism like proof-of-work (PoW) or proof-of-stake (PoS) to validate transactions and add them to the chain.
While public blockchains offer transparency and immutability, they lack privacy and can be slower and more expensive due to the large number of participants.
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Private Blockchain Network
In contrast to public blockchains, a private blockchain network is permissioned and controlled by a single entity or organization.
Selected participants with granted read and write access control the entry to the blockchain.
Private blockchains prioritize privacy, security, and confidentiality of the stored data, making them suitable for industries like finance and healthcare.
These blockchains are faster and more efficient than public blockchains as they have fewer nodes and a centralized system. However, they lack the decentralization and transparency associated with public blockchains.
Consortium Blockchain Network
A consortium blockchain network is a hybrid between public and private blockchains.
It is operated by a group of organizations that collaborate to maintain a decentralized network. Unlike public chains, consortium chains restrict access to selected participants rather than the general public.
This type of chain offers a higher level of decentralization compared to private blockchains but is not fully open like public chains.
Consortium chains are often used in industries where multiple organizations need to share and verify data, such as supply chain management.
Permissioned Blockchain Network
A permissioned chain network can be either public or private but requires permission to access.
Before joining the network and validating transactions, participants need authorization.
Industries like financial services commonly employ these chains, prioritizing regulatory compliance and data privacy.
Industries like financial services frequently employ these chains, where regulatory compliance and data privacy hold paramount importance.
The Top Five Blockchain Networks
Several chain networks have gained significant popularity and adoption among companies and individuals.
Here are the top five chain networks based on their usage by the world’s top 100 public companies:
- Hyperledger Fabric: Twenty-six of the world’s top 100 public companies actively utilize this network. Hyperledger Fabric is an open-source framework that provides flexibility and scalability for various enterprise use cases.
- Ethereum: Among the top 100 public companies, Ethereum stands as the second most utilized chain network, with 18 companies leveraging its capabilities. Ethereum boasts smart contract functionality that empowers the creation and execution of decentralized applications (DApps).
- Quorum: Eleven companies among the top 100 public companies rely on Quorum, a permissioned chain platform developed by JPMorgan Chase. Quorum, designed exclusively for financial service institutions, presents advanced privacy features.
- Corda: Eight companies in the top 100 public companies use Corda, a chain platform developed by R3. Corda caters to industries like trade finance, insurance, and healthcare, furnishing them with secure and efficient transaction processing solutions.
- Mediledger: Three companies among the top 100 public companies utilize Mediledger, a chain platform focused on the pharmaceutical industry. Mediledger enables traceability and transparency in supply chain management, ensuring the authenticity and integrity of pharmaceutical products.
Conclusion
In conclusion, chain technology has revolutionized various industries and applications, offering benefits such as security, transparency, automation, efficiency, and cost reduction.
With over 1,000 chains in existence, including public, private, consortium, and permissioned networks, businesses and individuals have a wide range of options to choose from based on their specific requirements.
The top blockchain networks, including Hyperledger Fabric, Ethereum, Quorum, Corda, and Mediledger, have proven their value and gained significant adoption among leading companies.
