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Blockchain Architecture
Updated on 26th May, 23 296 Views

A blockchain is a type of repository or digital ledger where encoded blocks of data about virtual currencies are kept and linked together to create a time-based single point of truth for the information.

Instead of being cloned or transmitted, digital assets are dispersed. Because digital assets are decentralized, several parties can govern them and access them in real time.

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Now, we will go through Blockchain Architecture to get understand more about it;

Table of content:

What is Blockchain Architecture?

The banking sector is making extensive use of blockchain architecture. However, today’s technology encourages the creation of software solutions for payment systems, digital notaries, and cryptocurrency record-keeping.

Meanwhile, the general distribution in the blockchain architecture functions in complicated ways, with each block distributing data across networks. The shared state in a database refers to the fact that all systems are configured with similar data criteria and conditions.

Decentralization, liability, and protection comprise the three pillars on which this architecture bases its whole functioning. Applications based on blockchain technology are frequently evolving continuously due to the significant potential for maximizing efficiency in cost-effective methods.

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Blockchain Architecture Types

There are three types of Blockchain Architecture:

Types of Blockchain Architecture

Public Blockchain Architecture:

With a public blockchain design, anyone who wants to get involved can obtain the information and use the network.

Example: Bitcoin, Dogecoin, and Ripple blockchain systems are public.


  • A public network runs on an incentive system that motivates new users to sign up and maintains the network’s flexibility.
    • From the perspective of an operation that is decentralized, democratized, and authority-free, public blockchains present a particularly attractive answer.


  • Securing public blockchains has a few drawbacks, but their greatest drawback is how much energy is needed to keep them running. 
    • The issue is caused by a consortium blockchain that forces users to compete for rewards to grant the network access to their computing power.

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Private Blockchain Architecture:

In contrast to public blockchain architecture, the private system is run entirely by participants who have been invited or who are members of a specific organization.

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  • Private blockchains are not decentralized.
    • It is a distributed ledger that functions as a restricted database protected by cryptographic principles and the requirements of the organization.


  • If a user or administrator can’t make modifications, a private blockchain may simply have the originality of data entered.
    • Private blockchains lack many of the beneficial features of uncensorable systems despite being specifically created for business applications because they aren’t as extensively used.

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Consortium Blockchain Architecture:

This blockchain structure might include a few different companies. In a consortium, the initially designated users set up and manage the operations.


  • The benefit of Consortium blockchain architecture is that, anyone can connect to the network following a proper identification verification procedure.
    • Some grant exclusive privileges to carry out only particular actions on a network.
    • One of the numerous services made possible by permission blockchains is Blockchain-as-a-Service (BaaS), a blockchain designed to scale for the needs of multiple companies or jobs that the providers rent out to other companies.


  • Depending on how they are set up Consortium blockchains can have the same drawbacks as public and private blockchains.
    • Consortium blockchains have several drawbacks, including the fact they are susceptible to hacking because they need internet connectivity.
    • Immutability strategies like cryptographic protective measures and validation via consensual methods may be used by some people on purpose.

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Blockchain Architecture Components

The basic components of blockchain architecture are as follows:

  • Transaction: Conversely, transactions, which include the addresses of the sender, beneficiary, and associated values, are what power any blockchain platform. It is the blocks of transactions that are compiled, transferred between nodes, and analyzed one by one by each node.

This ongoing data flow is what creates the blockchain architecture. An individual transaction may contain one or many inputs and outputs.

In this case, the set point from a prior transaction serves as the input, and the quantity and location serve as the result.

  • Blocks: The data is contained in a block along with transactions. Blocks are data structures that serve as containers for groups of transactions and are replicated across all network nodes. Miners are the people who build blocks in the blockchain.

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Types of  Blocks in Blockchain:

These are the different types of Blocks in Blockchain:

  • Main Branch Blocks – These are the additions to the actual main blockchain platform.
  • Side Branch Blocks – Parent blocks that are absent from the contemporary blockchain are referred to as side branch blocks.
  • Orphan Branch Blocks – Orphan blocks are those whose parents are unknown to the node examining the live blockchain.
  • Mining: The blockchain architecture’s ability to function smoothly is powered by mining.

Their work is comparable to that performed by the system that processes credit cards. Here, the details of each transaction in the queue are cross-checked to ensure accuracy.

The transaction is bundled into the appropriate blocks and added to the system once it has been determined to be authentic.

  • Consensus: In a blockchain that has been verified, it is the phrase that denotes the consensus of all network nodes.

It can be seen as a set of laws that are harmoniously upheld by each block on its own. With the growth in the network, the miners and nodes update the aggregate consensus with more recent nodes.

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Features of Blockchain Architecture

Here the some of the features of Blockchain Architecture.

  • Anonymity: Each member of the blockchain network has a created address rather than a user identification. This preserves user privacy, particularly in a public blockchain system.
  • Cryptography: The intricate calculations and cryptographic evidence among the people concerned make blockchain transactions legitimate and trustworthy.
  • Decentralization: The entirety of the distributed database is accessible to every participant of the blockchain structure. Compared to central-based systems, consensus algorithms enable network control.
  • Provenance: As per the fact that each transaction’s source can be found inside the blockchain record.
  • Immutability: A blockchain’s data cannot be altered or erased.
  • Transparency: The blockchain system is impervious to fraud. This is quite unlikely to occur because it would take a lot of processing power to totally replace the blockchain network.


The term ‘blockchain’ refers to distributed-ledger technology that employs payment systems to share multi-party operations with the participating businesses in a business network. This powerful concept of blockchain is fueling the establishment of a new wave of transactional apps.

Blockchain certification is also a credential that verifies an individual’s knowledge and skills related to blockchain technology. With the growing adoption of blockchain in various industries, blockchain certification has become increasingly popular among professionals looking to advance their careers in this field.

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