Different Types of Blockchain Technology for Data Protection
Blockchain technology is used for all types of cryptocurrency transactions. Blockchain is a completely digitalized, decentralized, and public ledger. Blockchain stores all data in the form of blocks for all transactions and these blocks can be added and deleted from Blockchain in chronological order. For all digital currency transactions, it is good if all of its users have kept a record; Blockchain technology provides this record-keeping option to all users. This record information will also download automatically to the computer used by users. Information is downloaded only when the computer is connected to the internet.
For the first virtual currency, which is Bitcoin, there is a need for a security mechanism so that users can make secure and effective transactions with complete data protection. In the current trend, famous distributed ledger technology (DLT) is used so that all transactions will be verified. DLT technology is used for verifying transactions that are based on digital currencies. Blockchain technology creates a block for storing information and maintaining a record. This record cannot be changed at any cost, and the whole community is here for following Blockchain technology.
Interrelation between Blockchain and Bitcoin
According to average, a new block is appended to Blockchain within 10 minutes. One of the most famous developed technology innovations has been done due to Bitcoin, termed Blockchain. There is no authority over its rules and regulation because it is a decentralized technology. Only the users of Bitcoin can validate and check all digital transactions when one user is paying another user for purchasing his services or goods. There is a one-to-one relation between Bitcoin and Blockchain, no requirement for including a third party whom you can trust, such as banks. All information from Blockchain is stored in blocks. Each block in the whole Blockchain contains:
- A set of all valid transactions
- Link with the previous block
Blockchain is categorized into the main three categories: public Blockchain, consortium Blockchain, and private Blockchain.
- Public Blockchain
A Blockchain, which everyone and everyone read can transfer digital currency to another person without any doubt, is known as a public Blockchain. Blockchain users will also get an option to check whether transactions are valid or not for participation in the consensus process.
- Consortium Blockchain
Consortium Blockchain is one where a set of nodes is required for all processes, including consensus. This set of a node is pre-selected. For validating its transaction, every user must have to sign every block.
- Private Blockchain
All written permissions are authorized only for one organization in private Blockchain, while read permissions are available for all users. Auditing and database management are organization applications for using private Blockchain technology.
This Blockchain technology is used in every field. The economic status of every country is taking growth with excessive use of Bitcoin and digital currency because data protection is the purpose of this technology. All payment related transaction facilities are so effective with this technology, and you will also have to know about its benefits.