There are several chains of digital currency

The chain type of digital currency is determined by the underlying blockchain technology, mainly including: public chain: open and permissionless, such as Bitcoin and Ethereum. Private chain: controlled by a specific organization and requires authorization to participate. Alliance chain: jointly managed by multiple organizations, and participants need to be authorized. Side chain: It is associated with the main chain and has independent rules, such as the Bitcoin Lightning Network. Privacy chain: Focus on protecting privacy, such as Monero and Zcoin. Programmable chain: smart contracts can be created, such as Ethereum and EOS. Cross-chain: Connecting different blockchains, such as Polkadot and Cosmos.

Chain type of digital currency

The chain of digital currency refers to the underlying blockchain technology, which is digital The basis of money. According to the structure and function of the chain, digital currency mainly has the following types of chains:

1. Public chain

• The most common chain type
• Open, no permission required, anyone can participate
• For example: Bitcoin, Ethereum

2. Private chain

• Controlled by a specific organization or institution
• Requires authorization to participate
• For example: Blockchain solutions used by enterprises

3. Alliance Chain

• Co-management by multiple organizations or institutions
• Participants need to be authorized
• For example: blockchain applications in the fields of healthcare and supply chain

4. Sidechain

• is associated with the main chain, but has independent rules and functions
• allows developers Innovate without affecting the main chain
• For example: Bitcoin Lightning Network

5. Privacy chain

• Focus on protecting user privacy
• Use encryption technology to hide transaction information
• For example: Monero, Zcash

6. Programmable chain

• Allows users to create smart contracts and other custom functions
• Provides a platform for the development of decentralized applications (dApps)
• For example: Ethereum Square, EOS

7. Cross-chain

• Connecting chains of different blockchains
• allows in different blocks Transfer assets and information between chains
• For example: Polkadot, Cosmos

Each chain type has its advantages and disadvantages, and the specific application depends on the specific needs of the digital currency.

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