Blockchain Networks

In conceptual terms, a Blockchain network refers to a group of connected participants that transact and share data using a peer-to-peer, consensus approval method. In technical terms, a Blockchain network is the physical network of computer servers, each running its own blockchain software to store, exchange, and synchronize transactions and data.

Blockchain networks can be private or public. A private network is intended for transactions between a closed group of participants, where one can join by invitation only. A public network is one where anyone is free to join as long as they adhere to the rules and regulations and processes and protocols set up by the participating community.

In most cases, for both public and private networks, multiple organizations or individuals come together as a consortium to form of the network, and their permissions are determined by a set of policies that are agreed by the consortium when the network is originally configured.

A Blockchain network is made up by Participants (individuals or organizations that transaction on the network). Every participant deploys and runs a Node, which executes transactions and synchronizes them with the other participants nodes on the network. Every participant has an Account which is used to maintain a balance of the currency traded on the network. Participants have to pay to execute transactions on a network.

There are multiple Blockchain implementations, each with their own technology stack and their own currency (in some cases this is publicly traded as cryptocurrency with real monetary value). We will be using Ethereum (which uses a currency named as Ether) for our implementation.

Blockchain Network Types

Within each implementation there are multiple types of networks, categorized by their purpose:

• Mainnet

This is the primary public network used for trading the Blockchain cryptocurrency (Ethereum and Ether for example). Cryptocurrency on this network has a real (generally dollar denominated) monetary value. The network can be used to execute public transactions and deploy publicly accessible Smart Contracts deployed and managed by a publicly recognized organization or a consortium.

• Testnet

This is a public network that closely mimics the Mainnet but the traded currency has no real monetary value. The purpose of this network is to allow developers to test transaction and Smart Contracts before deploying them on the Mainnet.

• Private Network

A private network can be set up by any organization or a consortium of organizations using the same technology stack used by the public networks (with some limitations) with access only to select participants. A private network can be used to execute transactions and deploy Smart Contracts accessible only within the selected participants.

• Devnet

A Devnet is a private network used by developers to execute test transactions and deploy and test Smart Contracts.

Implementation Options

You have two options to learn the process of implementing a Blockchain network, deploying a Smart Contract and executing transactions.