The advancement of blockchain technology has led to its use in diverse sectors ranging from supply chain management to governance. These extensive uses of this technology resulted in the showcasing of the many challenges associated with the earlier versions. To mitigate these challenges, the different versions of blockchain technology were developed with each version giving priority to certain properties over others.
Basically, there are three main types of blockchain namely; public blockchain, private blockchain and hybrid blockchain. For the purpose of clarity, we will briefly discuss both public and private blockchains before diving into the hybrid blockchain technology.
The public blockchain is the first division of blockchain developed. Also called the permission-less blockchain, a public blockchain is a blockchain network that allows anyone with an internet connection to send transactions and also participate in the execution of a consensus protocol. The blockchain has absolutely no access restrictions and is open to the public. Thus, every user can download the blockchain's software and run their own node, allowing them to verify its information and add new blocks to the blockchain. This feature makes public blockchains get filled with thousands of nodes actively contributing to the maintenance of the network. These nodes form a global and decentralized network of independent nodes with each node communicating with and verifying the work of other nodes.
The benefits of the public blockchain are extensive. The network offer users high security, an open environment to transact, no regulations, immutability and true decentralization with the ability of the users to keep their anonymous nature. However, it does not ensure privacy and has low efficiency when compared to other types of blockchain. Also, it is highly unstable, costly and is sometimes used to perpetrate illegal activities hence raising concerns in private enterprises.
On the other hand, a private blockchain also called a permissioned blockchain is a blockchain network in which participation and validator access is restricted. This means that a user cannot join the blockchain unless he or she is invited by the network administrators. Unlike public blockchain platforms, private blockchains tend to focus on privacy concerns hence, they offer users full privacy for transactions.
Also, private blockchains are highly efficient, stable and regulated. They also offer users a low fee since the cost of maintaining a private blockchain is miniscule. Furthermore, private blockchain platforms have authentication processes that help to prevent illegal activities from taking place. However, private blockchains do not offer users true decentralization, anonymity and immutability. The central point is controlled by a single entity or a small body of entities.
HYBRID BLOCKCHAIN
A hybrid blockchain is a blockchain network that attempts to utilize the features of both public and private blockchains to create the perfect transaction space. The blockchain combine both centralized and decentralized features. To provide the utmost user experience, this blockchain combines private blockchains features such as privacy and low transactional cost with that of public blockchains such as security and transparency.
In the hybrid blockchain network, the members of the blockchain decide who can participate in the blockchain or which transactions are made public. Also, every transaction that takes place in the blockchain is kept private and is always open for verification when required. This ensures that each transaction is written once and cannot be changed in the future.
ALGORAND BLOCKCHAIN
The Algorand blockchain platform is the technology company that built and developed the world's first open, permission-less, pure Proof-of-Stake blockchain protocol which provides, without forking, the necessary security, scalability and decentralization needed for today's economy. Algorand removes the technical barriers that has undermined mainstream blockchain adoption for years; decentralization, scale and security. Its consensus mechanism is permission-less and utilized the Pure Proof-of-Stake protocol which ensures full participation, protection and speed within the truly decentralized network.
ALGORAND BLOCKCHAIN'S EFFECTIVENESS OVER THE AVERAGE HYBRID BLOCKCHAINS
Generally, the Algorand blockchain network may be classified as a hybrid blockchain. However, a closer look speculates otherwise.
Unlike the average hybrid blockchain, the Algorand blockchain utilizes only the good features of both the public and private blockchains to give their users the best experience. To start with, Algorand offers their users true decentralization which means that there is no powerful central authority or single point of contact as seen in average hybrid blockchains. This helps to ensure fairness, transparency and accuracy of transactions.
Also, unlike the average hybrid blockchain platforms that offer select permission to users, the Algorand blockchain platform is public and open to all. Users do not need the approval of a trusted authority to use the platform. The Algorand node repository is open-sourced and publicly available for anyone to audit, use and build upon.
These special features which the Algorand blockchain platform offers users are complimentary to the general beneficial features the average hybrid blockchain offers.
IN CONCLUSION,
Although the reader might be tempted to categorize the Algorand blockchain as an average hybrid blockchain, a closer look at its founding principles of transparency, inclusivity and collaboration which is maintained by a dedicated community with a shared vision of a decentralized, borderless and global economy will change the reader's mind positively.
Written by Musa Aminu Bio- Algorand ambassador.
