Let's break down public, private, and consortium blockchains

Today's newsletter is brought to you by

🍍 Market flavor today

🧱 What are the different types of blockchains?

Yesterday, we cracked open the tech behind blockchain - the digital notebook that never forgets.

But not all blockchains are built the same. Some are open books, some are locked diaries, and some are... something in between.

Let's pour them out and see what each one tastes like 👇

1/ Public blockchains - the open ones

These are blockchains anyone can join, use, or verify.

Every transaction is visible to everyone, and anyone can help confirm it.

That's what makes these chains fully decentralized and transparent- no single person or company is in control.

However, that openness comes with trade-offs. Because every participant must agree on each transaction through a consensus process, confirming transactions takes time. And the more people involved, the longer it can take.

On top of that, users compete to get their transactions processed first by offering fees to validators or miners. When demand is high, those fees increase.

Examples:Bitcoin, Ethereum, Solana.

✅ Pros: Open, secure, censorship-resistant.

⚠️ Cons: Slower and sometimes pricey.

Think of public blockchains like a public park: anyone can walk in, everyone enjoys it - but it can get crowded.

2/ Private Blockchains - the closed ones

These are the opposite. A single organization controls who can join and what they can do.

You need permission to participate, and data is often kept private, which is ideal for businesses that deal with sensitive information.

And because only a limited number of trusted participants validate transactions, these networks can process data much faster and more efficiently than public ones.

Example: Hyperledger Fabric, used by IBM and other companies.

✅ Pros: Fast, efficient, private.

⚠️ Cons: Centralized.

A private blockchain is like a corporate office building: everything runs smoothly inside, but you'll need an access badge to get past the front desk.

3/ Consortium or hybrid blockchains - the mix-and-match ones.

These combine elements of both public and private systems.

They're often run by a group of organizations that share control - or they blend public transparency with private permissions.

Examples: R3 Corda, Energy Web Chain, and even parts of Ripple's XRP Ledger.

✅ Pros: Collaboration with some decentralization.

⚠️ Cons: Still relies on a few trusted players.

Think of consortium chains like a members-only coworking space - shared access, limited entry, and everyone inside has skin in the game.

Anyways, no matter which flavor you sip on, the recipe's the same at its core:

Every blockchain keeps a secure, verifiable record of who did what, and when - the difference lies in who gets to write in the notebook.

👉 Public blockchains = everyone's invited;

👉 Private blockchains = only a few have the pen;

👉 Consortium blockchains = a group takes turns writing.

Sooo… did you learn something new today? 😎 Any questions? Just reply to this email - I'll try to get back to you ASAP. I'd love to talk about it!

And if you enjoyed today's Crypto 101 edition, check out the previous ones I've written on different types of trading, CEXs vs. DEXs, hot vs. cold wallets, how to spot a coin's red flags, and what dApps are.

🚀 New Missions = more Bits = bigger share of the $15K Airdrop!

BitDegree Season 8 is heating up, and your path to the $15,000 Airdrop got even easier - thanks to a fresh batch of Missions!

Each Mission helps you earn more Bits, climb higher on the Season 8 leaderboard, and unlock exclusive extra rewards along the way 👀

Here are a few of the latest Missions you can check out:

🎯 Explore Bank-Free Ways to Send and Receive Money

🎯 Non-Custodial By Design: Discover Ogvio Security

🎯 Ledger Nano Gen5: The New Playful Signer

It's a win-win: complete Missions, learn something new, earn Bits, and move closer to your share of the $15K Airdrop before November 30! 🏆

Don't just watch others participate:

🍌 Juicy memes