Blockchain

Blockchain is one of the most advanced technologies today. It is a system that records information in a customized way so that it prevents any kind of fishing activities from outside. It primarily refers to a digital ledger of transactions that are subject to distribution through an entire network of computer systems on blockchain technology.

Every blockchain involves multiple transactions. Note that every new structure happens on the blockchain. However, a decentralized database operated by multiple candidates is called DLT or distributed ledger technology. Blockchain refers to a type of DLT that records each transaction with a HASH (an immutable cryptographic signature).

Blockchain technology is a digital system of record that records, stores and integrates transactions without the need for a third party. Blockchain technology creates "blocks" of transactions, which are then linked and secured using cryptography. Blocks are linked to each other and secured using the cryptographic hash of the previous block.

 

1.    Bitcoin Blockchain

Blockchain is a distributed, public ledger that contains the history of every bitcoin transaction. Anyone can download a copy of the blockchain, and it can be inspected to trace the path of bitcoins from one bitcoin transaction to another. It should be noted that there is a record of every Bitcoin transaction, but these transactions are not inherently linked to real-life identities. For this reason, Bitcoin is considered a pseudonym (Anonymous).

Bitcoins themselves are not files stored on your computer's hard drive like MP3s or PDFs. Rather, "owning bitcoins" means owning a bitcoin address, the balance of which is recorded on the blockchain. To own a Bitcoin address means to control the corresponding private key, and therefore to be authorized to sign transactions.

 

2.    Ethereum

Ethereum is a decentralized blockchain platform that establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts. Smart contracts allow participants to transact with each other without a trusted central authority. Transaction records are immutable, verifiable, and securely distributed across the network, giving participants full ownership and visibility into transaction data. Transactions are sent and received from user-created Ethereum accounts. The sender must sign the transaction and spend Ether, Ethereum's native cryptocurrency, as the cost of processing the transaction on the network.

Ethereum offers a highly flexible platform on which to develop decentralized applications using the native Solidity scripting language and the Ethereum Virtual Machine. Decentralized application developers who deploy smart contracts on Ethereum benefit from a rich ecosystem of developer tooling and established best practices that come with the maturity of the protocol. This maturity also extends to the quality of the user experience for the average user of Ethereum applications, with Metamask, Argent, Rainbow and more offering simpler interfaces with the Ethereum blockchain and the smart contracts deployed there, can be interacted with. Ethereum's large user base encourages developers to deploy their applications on the network, further strengthening Ethereum as the primary home for decentralized applications such as DeFi and NFTs. In the future, the backwards-compatible Ethereum 2.0 protocol, currently under development, will provide a more scalable network for building decentralized applications that require higher transaction throughput.

 

3.    Solana

Solana is a public blockchain platform with smart contract functionality. Solana is a highly active open-source project that implements a new, permissionless and fast Layer 1 blockchain. Created in 2017 by Anatoly Yakovenko, a former Qualcomm executive, Solana aims to exceed the throughput typically achieved by popular blockchains while keeping costs down. Solana has implemented an innovative hybrid consensus model that combines a unique Proof-of-History (PoH) algorithm with a lightning-fast synchronization engine, a version of Proof-of-Stake (PoS). Because of this, the Solana network can theoretically process 710,000 transactions per second (TPS) without the need for a scaling solution.

Solana's third-generation blockchain architecture is designed to facilitate smart contracts and decentralized application (DApp) creation. The project supports decentralized finance (DeFi) platforms as well as non-fungible token (NFT) markets.

Solana Blockchain was launched during the initial coin offering (ICO) boom of 2017. The project's internal testnet was released in 2018, followed by multiple testnet phases leading to the eventual official launch of the main network in 2020.

 

4.    Cardano

Cardano's founder, Charles Hoskinson, was one of the original developers of Ethereum. Even as they have peaked in the past few years, most cryptocurrencies have had a chaotic growth trajectory. The scandals, hacks, and disagreements that resulted in hard forks have brought a bad rep for their ecosystem.

Cardano is a blockchain project founded by Charles Hoskinson, to "provide a more balanced and sustainable ecosystem" for cryptocurrencies. According to its website, ADA is the only coin with a "scientific philosophy and research-based approach." In practical terms, this means that its open-source blockchain undergoes a rigorous peer-review process by scientists and programmers from academia.

The non-profit foundation that runs Cardano has also partnered with a group of academic institutions to research and evaluate all aspects of its blockchain. For example, researchers at Lancaster University are developing a "reference treasury model" to find a sustainable way to fund future development for Cardano's blockchain.

ADA calls itself the first third-generation cryptocurrency and aims to address the scaling and infrastructure issues that first arose in Bitcoin, the first-generation cryptocurrency that introduced the idea of ​​digital coins, and Ethereum, a second-generation cryptocurrency with expanded use cases. Smart Contract Coins In particular, Cardano aims to solve issues related to scalability, interoperability, and sustainability on cryptocurrency platforms.

 

5.    Avalanche

Avalanche is a blockchain platform that aims to solve the blockchain trilemma of scalability, security and decentralization thanks to its unique proof-of-stake (PoS) mechanism. Like Ethereum, Avalanche supports smart contracts to run decentralized applications (DApps) on its network. Because Avalanche's smart contracts are written in the Solidity language, which is also used by Ethereum, it aims to create more blockchains by integrating multiple decentralized finance (DeFi) ecosystems, including the likes of Aave and Curve, well established projects.

AVAX, the native token of the Avalanche platform, is used to power transactions in its ecosystem. AVAX acts as a means of facilitating transactions on the network by distributing system rewards, participating in governance and paying fees.

Although Avalanche's platform is complex, there are three main aspects of its design that distinguish it from other blockchain projects: its consensus mechanism, its inclusion of subnetworks and its use of multiple built-in blockchains.

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(All the material in this article is only the author's opinion, and could not be considered as "Financial Advice")

 

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