> For the complete documentation index, see [llms.txt](https://docs.haven1.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.haven1.org/learn/blockchain-basics.md).

# Haven1 Blockchain basics

## Understanding Public, Permissioned Networks

### A Primer on Blockchain Technology Fundamentals

Blockchain technology fundamentally reshapes the way data is stored and transactions are recorded and verified. It's a decentralized, distributed ledger technology (DLT) where each block contains a number of transactions. Every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant's ledger.

### **Types of Blockchain Networks**

* **Public Blockchains**: These are open and decentralized networks where anyone can join and participate in the network. The most well-known public blockchains are Bitcoin and Ethereum. Transactions on public blockchains are transparent and immutable.
* **Permissioned Blockchains**: These networks are typically used purpose-built as opposed to general-purpose blockchains and can be private. In permissioned blockchains, access is restricted to certain users, and the network owner has control over who can participate.

<figure><img src="/files/zWONunWXVulORvTCcqid" alt=""><figcaption></figcaption></figure>

### Context of Haven1

Haven1 utilizes a permissioned blockchain model, building on the foundation of GoQuorum, which is a modification of Ethereum’s standard protocol. In Haven1’s context:

* **Robust Security Framework**: The primary focus of Haven1 is to bolster security, a crucial aspect for enterprises dealing with sensitive information. Utilizing GoQuorum's advanced features, Haven1 ensures a highly secure network, safeguarding data and transactions.
* **Controlled Access**: Haven1's blockchain network access is meticulously controlled. Only verified and authorized entities are granted access, which is essential for applications that prioritize data integrity and a secure operational environment. This level of regulated access is key in ensuring that the network remains secure and functional for real-world assets.

### Smart Contracts and Consensus Mechanisms in Haven1

### Smart Contracts in Haven1

Smart contracts are self-executing contracts where the terms of the agreement are directly written into lines of code. In Haven1:

* **Enhanced Smart Contract Functionality**: Haven1 enhances GoQuorum's smart contract capabilities, enabling the development of more complex and secure contract structures. This is particularly beneficial for real-world assets and applications, where the complexity and security of contracts are crucial.

### Consensus Mechanisms in Haven1

Consensus mechanisms are fundamental to blockchain technology, ensuring that all transactions are verified and agreed upon by the network. Haven1 inherits&#x20;

* **GoQuorum’s Consensus Mechanisms**: Haven1 inherits GoQuorum’s consensus mechanisms, which are more efficient for consortium and enterprise use, like Istanbul BFT and Raft-based consensus.
* **Tailored for Enterprise Needs**: These mechanisms are particularly suited for Haven1’s scalability and security focus, providing faster and more efficient consensus than traditional Proof of Work (PoW) used in public blockchains.

<figure><img src="/files/wWW0QRj2vRHtjRDOwE7y" alt=""><figcaption></figcaption></figure>