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Three core types of blockchains exist: public networks like Bitcoin, permissioned networks such as Ripple, and private networks like Hijro.

Blockchains perform a couple of straightforward functions:

 They move value and trade value quickly and at a very low cost.

 They create nearly permanent data histories.

Blockchain technology also allows for a few less-straightforward solutions, such as the ability to prove that you have a “thing” without revealing it to the other party. It is also possible to “prove the negative,” or prove what is missing within a dataset or system. This feature is particularly useful for auditing and proving compliance.

ssss1 lists common use cases that are suited for each type of blockchain.

ssss1 Common Uses for Different Types of Blockchains

Primary PurposeType of Blockchain Move value between untrusted parties Public Move value between trusted parties Private Trade value between unlike things Permissioned Trade value of the same thing Public Create decentralized organization Public or permissioned Create decentralized contract Public or permissioned Trade securitized assets Public or permissioned Build identity for people or things Public Publish for public recordkeeping Public Publish for private recordkeeping Public or permissioned Perform auditing of records or systems Public or permissioned Publish land title data Public Trade digital money or assets Public or permissioned Create systems for Internet of Things (IoT) security Public Build systems security Public

There may be exceptions depending on your project, and it is possible to use a different type of blockchain to reach your goal. But in general, here’s how to break down different types of networks and understand their strengths and weaknesses: