Blockchain Types Classification

Blockchains are classified according to the availability of a data ledger; this parameter divides the blockchain into classes. Although, the division into types is quite arbitrary because the technology itself is remaining the same. However, blockchain specialists have their own methods of classifying this system.

Canadian version

In summer 2015, Vitalik Buterin, the creator of Ethereum, published an article on the company’s blog in which he categorised blockchains into 3 types:

1. Public blockchain, where everyone can take part in the reconciliation, transactions are not controlled by anyone and are conducted in a free order.
2. Consortium blockchain, where only selected nodes control the reconciliation procedure.
3. Fully private blockchain, where all transactions are monitored and controlled by centralized authority.

British version

Sir Mark Walport, the Government Chief Scientific Adviser in the UK, classified blockchains in almost the same way. In his report on distributed ledgers and the blockchain potential in the field of public administration, he categorised blockchains into these 3 types:

1. Unpermissioned public ledgers.
2. Permissioned public ledgers.
3. Permissioned private ledgers.

Russian version

Often, to avoid confusion and to facilitate understanding, experts simply divide blockchains on open and closed ones. Russian blockchain experts adhere to this approach. Olga Skorobogatova, deputy chairman of the Central Bank of the Russian Federation, classifies blockchain exactly this way. She presented this topic at the ‘Blockchain and open platforms 2016’ conference.

Despite different opinions in the professional environment, any blockchain division for types is based on the degree of blockchain openness for its participants. Therefore, to understand the specifics of the ledger, it is usually enough to know whether it is open or closed. The answers to the following simple questions will help you classify the blockchain as one of those types:

• Who can create records in the system?
• Who can view the data?
• Who ensures the network integrity?