There are many points that an investor pays attention to when investing in a cryptocurrency. The white papers, the reliability of the project and the potential promised by the project are some of them. One of the most important features of a cryptocurrency is actually the blockchain network it is on.
Some cryptocurrencies use their own blockchain networks, while others use existing ones. Today, the most known network is the Bitcoin network, but we can say that the most used network has become the Ethereum network, especially with the popularization of NFTs. Let’s take a brief look at popular crypto networks.
Popular Crypto Networks
Introduced in 2013, Ethereum is one of the oldest and most established blockchain networks. The truly decentralized blockchain it provides is comparable to the Bitcoin blockchain network. The main strength of the network is that it is supported by smart contracts, enabling a truly decentralized platform. Its main weaknesses are long transaction times and higher transaction costs compared to other networks. Besides the role of a blockchain platform supporting enterprise applications, it has its own cryptocurrency called Ether.
In development since 2014, Tezos is a legacy platform that supports decentralized applications, smart contracts, and new financial instruments such as NFTs, which can be thought of as a modern variation of trading cards linked to digital assets. The network supports a dynamically upgradeable protocol and modular software clients that allow it to adapt to new uses. The Tezos community is rapidly upgrading the platform with recent enhancements that improve performance and increase the size cap on smart contracts. It has also developed tools to help automate the process of converting NFTs into enterprise supply chains.
Cardano is an open-source blockchain platform powered by the widely used ADA cryptocurrency token to host globally decentralized systems and applications. The Cardano ecosystem was founded in 2015 by one of the founding members of Ethereum, Charles Hoskinson.
Unlike the Bitcoin (BTC) origin story, Cardano lacked an authoritative whitepaper to predetermine its position within crypto finance. Instead, Hoskinson envisioned building layers of a system to solve problems that exist in other crypto ecosystems.
Solana is a public, open source and decentralized blockchain platform. It is provided by the combination of proof of share and proof of past. The internal cryptocurrency is SOL. Bloomberg sees Solana as “a potential long-term competitor for Ethereum.” Like Ethereum, Solana can interact with smart contracts.
The Solana platform has become increasingly popular due to the perception that the blockchain will be relatively easy to use when run by a large number of computers, mining efficiency and scalability. The perceived scalability, in particular, leads many to think it would be an effective DeFi platform. Solana’s scaling ability, which can comfortably handle around 50,000 transactions per second, is also faster than its major competitors.
Questions answered by the blog:
- What is the most popular crypto network?
- Which is the most used crypto network?
- How many crypto networks are there?
- Why is the crypto network important?