Before we discuss more about Blockchains, let’s first define what it is. If you are familiar with the term “blockchain” this is basically just a collection of computer-generated files that describe a particular transaction, such as how money from one user was spent in another user’s account. The technology behind blockchains has been around for quite some time, but only recently has it started to gain attention from mainstream businesses and organizations. There are different ways to approach the question of how blockchains will impact your business, but all agree that it is inevitable and very important to understand how it works. Let’s go over the main types of blockchains, as well as an overview of how you can start using the technology.
The two primary types of blockchains are public and private. A public chain allows anyone to view every transaction that has been made in the system and therefore, it is the most popular. A private transaction doesn’t allow any one person to see all transactions that have happened in the system, thus, it is also the least popular. Each system will allow users to add their own comments or other information to transactions that have already taken place.
With so many choices, how do you know which type of Blockchain is best for you? This is largely dependent upon how much money you want to save on transaction fees. Public chains eliminate transaction fees completely, while private ones usually charge fees only when a transaction is processed. It is a good idea to shop around before making a final decision. You should never feel compelled to follow the rules of any one particular Blockchain because doing so may cause your business to be shut down by federal authorities, or suffer significant losses.