Blockchains and their features
Hello, everyone, Just Dreamer🍀 is here again. This article is more for beginners in crypto, I tried to write as understandable language as possible.
For start, what is blockchain?
Blockchain — It is a sequence of blocks. Each block contains a hash of the previous block.
How does blockchain work?
How does it work in a bank?
Suppose you decide to send money to your friend Henry. How would that work through a bank? First you would send the money to the bank, after processing the request the bank would send the money to your friend, this is lled the CENTRALIZED NETWORK.
How does it work in blockchain?
You create a request in the blockchain, for example you want to send $50USDT to your friend Henry. Then VALIDATORS check if you have the currency in your wallet and confirm the transaction (there could be 2, 3, or even millions of Validators). Once confirmed, you send the currency directly via blockchain to your friend Henry. This is called a DECENTRALIZED NETWORK.
Validators — people and their servers who are allowed to validate transactions (miners).
So, now that we understand what blockchain is, get to the point. I'm sorry, but there's no need for complicated words. I will break down the most popular blockchains. (For NFT)
3. Binance Smart Chain (BSC ; BEP-20)
Ethereum ($ETH)
The second most capitalized network.
Ethereum is a universal tool for launching decentralized applications running on smart contracts. Ethereum cryptocurrency is the exchange unit of the ecosystem. Ethereum is sometimes called Bitcoin 2.0, but despite a certain similarity, these projects have fundamentally different purposes.
The main value of the Ethereum network is not the crypto-coins, but the capabilities of the virtual platform. All sorts of blockchain projects, from sports betting and online casinos to charities and NFTs, are launched based on Ethereum.
Ethereum blockchain makes it possible for everyone to use all the advantages of distributed ledger technology for specific tasks. After the emergence of the Ethereum system, it is no longer necessary to create a personal crypto-network. For a relatively small fee, it is possible to use an off-the-shelf solution.
The functionality of the Ethereum network allows:
- Run smart contracts of increased complexity to manage supply chains.
- Create any type of application (NFT games, utility programs, etc.).
- Digitize physical assets (oil, gold, gems, industrial goods).
- Manage customer identification and document authentication services.
- Organize decentralized trading platforms.
Solana ($SOL).
Ranked #9 in terms of capitalization
Solana is a blockchain created to support scalable decentralized applications
It is an advanced open-source blockchain project that aims to leverage several breakthrough technologies for the next generation of DApps.
The project aims to create a scalable, secure and maximally decentralized platform that can support potentially thousands of nodes without sacrificing bandwidth, helping to avoid some of the problems competing systems face.
And yes, that's exactly the project most prospective NFT collections and top P2Es are on right now.
The architecture has the theoretical ability to process up to 710,000 transactions per second. So far, a result of 60,000 transactions has been achieved. But even this figure makes it one of the fastest platforms in existence.
The network is designed so that it can easily handle a growing workload. Several technological innovations, including the original Proof-of-History protocol, make this platform a flexible and highly scalable tool.
With hundreds of thousands of users, the project has achieved savings at the expense of audience size. It has managed to keep transaction prices low within the system and in decentralized applications based on the platform.
Due to the fact that users do not need to deal with shards or second-tier systems, a high degree of compatibility is achieved. Solana can interoperate with other crypto-platforms as well.
Binance Smart Chain ($BNB).
Ranked #5 in terms of capitalization
Binance Chain is a peer-to-peer blockchain network created by Binance cryptocurrency exchange with the participation of its community of like-minded people (binancians). According to exchange CEO Changpeng Zhao (CZ), it is a simple network with a minimal number of features, the main advantages of which are almost instant transactions, low fees, fast block generation (less than 1 second) and the ability to withstand high loads.
The digital fuel of the chain is the cryptocurrency BNB. Binance Chain has a high throughput, but is not suitable for the development of dApps. Therefore, the specialists of Binance launched a new network Binance Smart Chain. It runs parallel to the main blockchain, is fully autonomous and is compatible with the Ethereum virtual machine. Unlike the core network, a full working environment is available here to release decentralized applications, while maintaining high throughput and reliability.
Technical features of the architecture:
- Blockchain is autonomous. It is not a Layer 2 solution. Therefore, even if Binance Chain fails, BSC can continue to function successfully.
- Compatibility with Ethereum. Most decentralized applications developed for Ethereum will run on BSC virtually unchanged.
- Consensus and steering involving stacking. The Proof-of-Stake consensus mechanism is secure and highly environmentally friendly, and gives more flexibility for community management.
- Strong mutual communication with Binance Chain. The communication protocol focuses on moving digital assets between BC and BSC.
TRON ($TRX)
Ranked #5 in terms of capitalization
You might say, "Buddy, why are you shoving us a blockchain that ranks 14th? You'll find out in a moment) a little patience)
TRON is a blockchain platform that aims to exchange free, decentralized user-generated content.
TRON aims to "heal the Internet" by giving "data liberation" to its users. They will be able to control their data and get paid directly for what they produce.
On the territory of this platform, participants receive full control not only over the placement of their own creations, but also over their further promotion and monetization. TRON cryptocurrency was created by the developers specifically for the authors to gain full independence in the process of implementing their creativity, without reference to a variety of external factors. For example, participants do not depend on the owners of the site, modern social networks, publishers, PR managers, etc.
Accordingly, this is a terrific space for NFT. Now a lot of promising projects on this blockchain are being launched.
Okay guys, it's been a very exciting and difficult journey, but you made it to the end and I congratulate you! Now you know about the most popular blockchains and the most necessary in my opinion for NFT. Thank you all for reading my article, I tried my best)
Just Dreamer🍀 was with you.
Well, it's time for me to say goodbye, and good luck to everyone!