# Types of blockchain

By [Alexandr](https://paragraph.com/@alexandr-3) · 2023-01-13

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Types of blockchain Blockchain can work both in a public (open) network, to which any user has access, and in a private (closed), for example, in a corporate network in case of using confidential data. In private versions of the blockchain, different levels of access for users and different complexity of information encryption can be provided. The most famous example of a public blockchain is Bitcoin and other cryptocurrencies. Corporations use blockchain not only in the financial sector, but also in other sectors, for example, in the entertainment industry (for issuing tickets) and healthcare (to protect patient data).

There are also hybrid networks that combine the properties of both open and closed networks.

The Central Bank classifies the blockchain according to various criteria:

by transaction objects: – information;

*   virtual value (a value that has no analogue in the "real world" - for example, bitcoin);
    

by type of network access: – unlimited (networks in which participants are allowed to carry out any activity);

– limited (networks that limit the activities of participants);

according to the requirements for passing identification: – anonymous;

*   pseudo-anonymous;
    

– complete identification;

Pick up cryptocurrencies according to the applied network consensus protocol: – PoW (Proof-of-work) — the right to certify a block is given to a participant based on the performance by him of some fairly complex work that satisfies predetermined criteria.

– PoS (Proof-of-stake) — the right to certify a block is given to the account holder when the amount of his funds and the period of their ownership meet the specified criteria. The formulas for calculating the criteria may vary slightly.

– PoS + PoW - a hybrid of PoW and PoS, when blocks can be verified both through calculated PoS criteria and PoW enumeration. The purpose of this approach is to complicate the recalculation of the entire chain (from the very first block), which is possible in the case of using PoS in its purest form.

– PBFT (Practical Byzantine Fault Tolerance), Paxos, RAFT — multi-stage network consensus establishment algorithms. The algorithms of this group allow the blockchain to function at low cost and have a significant throughput, but are weakly resistant to an increase in the number of participants.

– Non-BFT (Non Byzantine Fault Tolerance) — consensus algorithms that are unstable to behavior in which some participants start working against the network. Such algorithms are applicable in closed networks with full identification.

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*Originally published on [Alexandr](https://paragraph.com/@alexandr-3/types-of-blockchain)*