With the expansion of blockchain technology, several new decentralized platforms have emerged now
with
distinctive qualities. Therefore, it is difficult to analyze and determine which is the most
appropriate
as
per the requirement of the company. Shortlisting and then choosing one appropriate blockchain
protocol
needs
a lot of investigation, analysis, and comparison. A parallel comparison of the blockchain
platforms is
essential for the evaluation of the type of components that they present. The execution of
blockchain
technology originally started with Bitcoin. Blockchain utilized for the functioning of Bitcoin
was a basic
spread ledger mechanism that would record the Bitcoin transactions. Bitcoin was a public chain;
however,
with a period, Blockchain protocols developed, and currently, there are four fundamental types
of
blockchain
protocols:
Blockchain technology, with its numerous types, serves as an encrypted repository of digital
information.
It operates and is sustained established on the consensus
mechanisms,
distributed, decentralized, and autonomous network of computers. With the help of a blockchain
network,
transactions are protected with the help of consensus
mechanisms.
For
example, the horizontal Proof-of-History keeps a track of the transaction procedure completely,
thus,
eliminating any sort of fraudulent activities on the network.
What’s a blockchain protocol?
A blockchain protocol creates the foundation of the blockchain. This is, intrinsically, a
foundational
layer of code that forms the framework for blockchain activity.
This can use for cryptocurrency but is not restrained to it. For instance, Bitcoin is a
cryptocurrency.
Bitcoins are exchanged using the Bitcoin Protocol. Protocols can determine how digital purchases
are
shared.
The Bitcoin Protocol, as well as the Ethereum one, uses a proof-of-work scheme that affects
mining. This
implies that data is distributed (but secure) and numerous computers must come to an agreement
to prevent
any malicious attacks.
Some protocols work differently. Hyperledger Fabric, for one, does not use proof-of- stake or
proof-of-work. It is not a protocol developed for cryptocurrency. It is, however, fully
permissioned. This
indicates that companies can have power over the blockchain network. A full permission approach
is not
feasible in Bitcoin or Ethereum.
Why Does Blockchain Require a Protocol?
The main idea behind blockchain is its decentralized nature. This suggests that centralized
control is
missing. To make it work as intended, protocols are used. As there is no centralized commodity,
peers or
nodes require to be connected and keep a ledger copy. There is a consensus method that also
functions in
the
network to validate transactions into blocks.
These blocks, once completed, cannot be changed. All of this is done using protocols. It acts as
a
guideline. This also suggests that we have other types of blockchains that try to do something
differently,
relying on what they like to earn from their actions.
Bitcoin, for instance, is a cryptocurrency that aims to enhance decentralized buy exchange.
However,
right
now, it has become more of an asset utilized for preserving value, just like gold.
Blockchain is also
flourishing
rapidly in the past few years. It has come along a long way from what bitcoin has created. There
are
dedicated people, teams, and organizations trying to revolutionize blockchain with a more
suitable
solution
that can be implemented in various scenarios.
What are the different kinds of blockchains?
With companies and start-ups increasingly integrating blockchain into their organization’s
strategies,
the
decentralized technology has been categorized into four major classes based on its use points:
Public blockchain
Public blockchains are open-source blockchain networks. They authorize everybody to be a part of
the
network as users, designers, network members, and miners. Public blockchains are available for
equal
participation from all the members without any hindrance. Transactions being processed on the
public
blockchain are completely fine and available to all the parties of the network for examining the
elements
of
it.
A public blockchain is completely decentralized, with no major authority in control. It is
extremely
censorship-resistant as anybody can enter the network as per their wish, irrespective of the
place and
nationality. Therefore, public blockchains can never be shut down.
Private blockchain
Private blockchains are permissioned blockchains. People require approval to join these
blockchains.
Transaction on the private blockchains is private and is only available to the network players
who have
permission to function on the private blockchain.
These blockchains are essential for the companies that collaborate and share their data, but they
do not
like to submit their confidential business information in the procedures on a public blockchain.
A private
blockchain is way better centralized as the different entities of the network are driving the
chain, thus
keeping similar control over various participants and the systems of governance.
Hybrid blockchain
A hybrid blockchain has an ecosystem with the integrated components of both a public and a
private
blockchain network. This elaborated that the hybrid blockchain has the privacy and security of
the private
blockchain along with the transparency of the public blockchain. Thus, a hybrid blockchain
powers the
flexibility of a firm process by delivering the privacy and preference to put up any information
publicly
as
per their comfort.
The hybrid ecosystem is feasible because of the patented interchain attribute. This component
lets the
chain link with other blockchain protocols. With the use of a hybrid mechanism, the formation of
a
multi-chain network is easily possible. As they can run different public blockchains in a single
go to
improve the privacy of the transactions, they leverage the integrated hash power being utilized
for the
public chains.
Consortium blockchain
Consortium blockchains are also known as federated blockchains. They authorize any further
participant on
the block to join the established structure and share data instead of starting from the very
beginning.
With
the use of consortium blockchains, organizations conveniently get answers to ensure their time
and the
cost
of development.
There are different benefits of the consortium blockchain like the assurance, security,
economically
feasible, control, flexibility, and energy needed for the process of mining. Industries like
logistics,
banking & finance, healthcare & insurance implement the consortium blockchain.
Parallel comparison of different blockchain networks
With years of development, blockchain technology is now divided into different generations. Each
era of
blockchain has a level-up consensus mechanism handling the
problems
that the last generation of blockchains could not crack. For example, the scalability factor is
better
solved in the third generation blockchains as compared to the second and first-generation
blockchains.
The initial age of blockchains also lacked the quality of smart
contracts. Similarly, other elements like interoperability and TPS is more useful in
the third
blockchain era. This is why we must do a tabular and thorough comparison of other blockchain
platforms to
comprehend their characteristics and the development of P2P networks for successfully
implementing them in
our interactions.
Check out the table given below for an in-depth comparison of the blockchain protocols.
In Conclusion
The above comparison table is based on some essential parameters that will help you research and
choose
one
platform as per your organization’s necessities. The most significant fact of the blockchain
protocol
comparison is that it is never endless and grows from time to time with new upgrades and consensus mechanisms. For example, the second generation of
blockchains
evolved with a more suitable consensus mechanism in the
third
generation of protocols. They used horizontal proof-of-work and park chains in the case of
Polkadot,
to address the scalability problems. Thus, a parallel comparison of protocols can never end and
will
continue to transform with time for better analysis of the immutable blockchain technology.