Types Of Blockchain Architecture

Types of Blockchain Architecture

Everything You Need to Know about Blockchain Architecture – Explained

It doesn’t seem like a straightforward effort to comprehend the blockchain method and design, does it? You may easily learn the various elements of blockchain technology by reading the text that follows.

In this article, we describe the structure of the blockchain, its elements, and how they work together, specifically: Within the P2P network, nodes, Block characteristics, and the genesis block Activities recorded in the ledger, mining for the validation process, The blockchain architecture’s “consensus”, and Proof-of-work.

In 1991, the term “blockchain” was first introduced. A team of researchers aimed to develop a program to authenticate digital documents, making them impossible to modify or retroactively date. Additionally, Satoshi Nakamoto modified and innovated the technique.

“The first cryptocurrency, a blockchain-based project dubbed Bitcoin, was established by Nakamoto in 2008”

What is Blockchain Architecture?

The logical definition of a blockchain is a network of interconnected blocks that securely and authentically transport specified information (database) (peer-to-peer). In other words, blockchain makes the entire network decentralized because it is made up of numerous connected computers as opposed to a single, centralized server.

To further simplify the blockchain concept, it may be compared to work produced using Google Docs. You could recall the previous occasions when participants would circulate the documents and wait for others to make the required modifications. Thanks to Google Docs, it is now feasible to work on the same document simultaneously.

Digital information can now be disseminated rather than copied thanks to blockchain technology. With the help of this distributed ledger, data security, trust, and transparency are all supplied.

Blockchain architecture is widely used in the banking industry. However, today, this technology helps to develop software-based solutions for smart contracts, digital notaries, and cryptocurrency record-keeping.

Database vs Blockchain Architecture

A client-server network is used in the World Wide Web’s conventional architecture. Because the server is a centralized database maintained by several administrators with access rights, it saves all the necessary information in one location so that it is simple to update.

The distributed network of the blockchain architecture is maintained, authorized, and updated by each network participant. In addition to specific people, the entire blockchain network as a whole controls the system. Each member makes sure that all records and processes are in order, which results in the production of data that is legitimate and secure. So, parties that might not always trust one another can come to an agreement.

In a nutshell, the blockchain is a decentralized, distributed record of many types of transactions organized into a P2P network. It can be public or private. Although there are numerous machines in this network, the data cannot be changed without the network as a whole agreeing to it (each separate computer).

A list of blocks with transactions in a specific sequence serves as a representation of blockchain technology’s organizational structure. These lists can be kept in a simple database or as a flat file (.txt format). Blockchain utilizes two significant data structures, including:

  • Pointers are variables that store details about where another variable is. This is specifically indicating where another variable is located.
  • Linked lists are collections of blocks, where each block contains particular information and connects to the block after it using a pointer.

Since this block is the first in a chain, it makes sense that it does not contain the pointer. At the same time, a final block with a pointer to a valueless object may appear in the blockchain database.

The blockchain sequence diagram that follows is essentially a connected list of records:

The following uses of blockchain architecture are possible for businesses and organizations:

Cost Reduction: Keeping data current and secure against cybercrimes and other corrupt intentions saves a lot of money on maintaining centrally maintained databases (such as those used by banks and governmental entities).

Data History: In a blockchain framework, it is always possible to look up the past of every transaction. This is a continuously expanding archive, whereas a centralized database is more of a snapshot of data at a single point in time.

Data Security and Validity: The blockchain’s design makes it difficult to tamper with data after it has been entered. Since record validation uses separate independent networks rather than a single pool of computing power, it takes longer to complete. This shows that the system prioritizes high levels of data security and dependability over performance speed.

Types of Blockchain Architecture

All blockchain architectures can be divided into one of three groups:

Public Blockchain Architecture

Due to a public blockchain design, everyone who wants to join can access the system and the data.

Private Blockchain Architecture

The private system is managed solely by members of a certain organization or people who have been invited to participate, in contrast to public blockchain design.

Consortium Blockchain Architecture

There may be several separate businesses included in this blockchain system. The original designated users of a consortium develop and oversee the procedures.

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Blockchain is a distributed journal where each party has a local copy, as was previously explained. But the system might be more centralized or more decentralized depending on the blockchain structure type and its environment. This merely refers to the blockchain architecture and the person in charge of the ledger.

Since it is managed by a specific organization with greater secrecy, a private blockchain is seen as being more centralized. A public blockchain, however, is unbounded and therefore decentralized.

In a public blockchain, every one may see all the records and participate in the agreement process. On the other hand, this is less effective because it takes a long time for the blockchain architecture to accept each new record.

A public blockchain requires a lot more computing power than a private blockchain architecture, hence it is less efficient in terms of the time it takes for each transaction.

Fundamental Elements of the Blockchain Architecture: How Does It Operate?

The following are the fundamental components of a blockchain architecture:

Node: In the blockchain architecture, a node is a person or device (each has an independent copy of the whole blockchain ledger)

Transaction: It is the smallest unit in a blockchain system, which also includes records, information, and other things. Transactions are what allow a blockchain to function.

Block: A block is a type of data structure used to store a set of transactions that are dispersed among all network nodes.

Chain: Blocks are arranged in a chain in a specific order.

Miners: Blocks are verified by miners, specialized nodes, before being added to the blockchain’s structure

Consensus Protocol: Using blockchain technology requires following a set of rules known as consensus

Any new record or transaction within the blockchain implies the establishment of a new block. Then each record is verified as authentic and digitally signed. Before being added to the network, this block should be verified by the vast majority of nodes in the system.

The blockchain architecture diagram that follows demonstrates how this functions as a digital wallet.

Blockchain combines three well-known technologies.

  • Cryptography keys
  • A group of peers who collaborate with a shared ledger
  • A way of computing that keeps track of network activity and records
  1. A cryptography key is made up of two parts: a private key and a public key. These methods assist in the effective completion of two-party transactions.
  2. A secure digital identity reference is created by combining each person’s unique set of two keys, which are unique to them.
  3. This secure identification is the main feature of Blockchain technology. This is known as a cryptocurrency’s “digital signature,” and it is used to approve and manage transactions.
  4. A lot of people who function as authorities utilize the peer-to-peer network and the digital signature together to agree on transactions and other issues. 
  5. They immediately approve a transaction, which results in a successful secured transaction between the two network-connected parties after it has been mathematically proven to be genuine. 
  6. Finally, Blockchain users employ cryptography keys to carry out various types of digital transactions via the peer-to-peer network.

Creating a Private Blockchain Architecture

To create your own blockchain architecture, you should take into account:

  • Blockchain Network: The infrastructure for the application that is set up in a specific setting inside one or more businesses is referred to as the blockchain network.
  • Blockchain Code: The functions and objectives for which this blockchain solution has been designed are referred to as the blockchain code.

To create a private blockchain architecture, a few open-source tools are available. Among them, Hyperledger by the Linux Foundation is the most well-known. Also heavily utilizing this project are IBM and other well-known tech companies. A collection of tools are available for building blockchain architecture through Hyperledger Composer.

Ethereum and Corda are some additional tools you can use to create your own blockchain.

Required Skills to Build Blockchain Architecture

Competent blockchain developers require a wide range of skills. When beginning a career in blockchain development, it may be difficult to decide which skills to concentrate on developing. Although job advertisements might give applicants some insight into what companies are searching for, these “criteria” frequently take into account a company’s specific needs. However, there are six key skills that every blockchain developer should possess.

Understanding of the Blockchain Architecture: It is essential for blockchain developers, as is knowledge of how the technology works. They should be familiar with any other concepts, such as distributed ledgers, smart contracts, consensus, cryptography, and hash operations, that are necessary to understand how blockchain works. Developers should also be aware of the consortium, private, public, and hybrid blockchain architectures.

Understanding of Cryptography: To create a secure blockchain environment, developers should have a firm understanding of cryptographic principles and procedures, including wallets, keys, and digital signatures. They ought to understand how to use public-key cryptography to thwart illegal access to data as well as the variations between cryptographic hashing algorithms like SHA-256 and Keccak-256.

Understanding of Data Structures: The blockchain network is entirely made up of data structures. Each block, which may be viewed as a unit, is a type of data structure that combines transactions for the public ledger. Blockchain developers must frequently employ data structures and be familiar with their roles inside the blockchain network. They should also be familiar with the many types of data structures, such as graphs, heaps, hash trees, Patricia trees, and Merkle trees.

Knowledge of Smart Contracts: Smart contracts are self-executing contracts that allow two parties to transact goods and services directly between themselves. Because smart contracts have become a standard component of blockchain systems, developers should have a solid understanding of what they are and how they enforce business logic. Blockchain engineers must also be familiar with popular smart contract programming languages such as Vyper, Solidity, and Chaincode.

Fundamentals of Web Development: Web development and blockchain go hand in hand, especially given the latter’s emphasis on decentralized applications. Blockchain engineers must be well-versed in web development. This requires not only working knowledge of web application design and development, but also of supporting technologies and the steps required for their optimization and security.

Programming Language Proficiency: Depending on the platforms used to build blockchain ecosystems, multiple programming languages are frequently used in blockchain technology. Even if they cannot be experts in all languages, developers must be proficient in a number of them. Java, C++, Python, and JavaScript are some of the more popular blockchain languages. Developers should also have a strong background in object-oriented programming and be familiar with a variety of development frameworks and libraries.

Although different employers may place different weights on these skills, all six are required for a successful blockchain engineer. They are, however, not the only blockchain competencies that developers should possess. They should have fundamental skills such as understanding DevOps techniques, using team source control, participating in code reviews, developing secure and effective code, and staying current with new technologies. They should also be knowledgeable about open standards and technologies that promote interoperability, as well as have excellent cross-disciplinary skills. Furthermore, effective participation in today’s Agile development environments necessitates soft skills such as collaboration and communication.

How can someone learn to build blockchains?

Although there are no set requirements for becoming a blockchain developer, professionals can take some steps in that direction.


Blockchain development firms frequently seek candidates with degrees in computer science or a closely related field. Although it is not required, you should be aware that it may be an issue. Aside from that, there are numerous ways to advance your blockchain career. Begin with our Blockchain Training in Chennai to launch a promising career in cryptocurrency and other fields.

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