The name “blockchain” refers to the way transaction data is stored—in blocks that are connected in a chain. The blockchain expands as more transactions are made. It is a distributed database that keeps track of a growing collection of bills known as blocks.

Data that has been stored on a blockchain is very difficult to alter or erase. Users in the network who have validation control confirm a proposed transaction when someone wants to add a record to a blockchain, also known as a transaction or an entry.

Things can get complicated in this system as each blockchain has a slightly different idea of how this should operate and who can validate a transaction.

The different types of blockchains are:

Public blockchains: Anyone can join and take part in a public blockchain network. For the network to attract new participants, there is often an incentive system in place. One of the biggest public blockchain networks now in use is Bitcoin.
Private blockchains: A private blockchain network, similar to a public blockchain network, is a decentralized peer-to-peer network. A single organisation, however, controls the network’s governance, executing a consensus procedure and managing the shared ledger.
Permissioned blockchain networks: Businesses that create a private blockchain typically create a network that is permissioned. It’s crucial to remember that public blockchain networks can have permissions as well. As a result, there are limitations on the transactions and who can participate in the network.
Consortium blockchains: In a consortium blockchain, the maintenance might be split across several companies. Details on users who can submit transactions or access the data is decided by these pre-selected companies.