Blockchain technology has come a long way since its inception in 2008 as the underlying technology for the first cryptocurrency, Bitcoin. Today, the use cases for blockchain technology go far beyond just cryptocurrencies, and the number of blockchain protocols has exploded in recent years, and records are available in CryptoManiaks.
However, with so many options available, it can be challenging to know which protocols to pay attention to. This crypto guide will examine the top ten blockchain protocols worth knowing about in 2023.
10 Blockchain Protocols to Know in 2023
For ease and comfort, our experts have researched the top ten blockchain protocols you need to know in 2023. Below is a list of the blockchain protocols we have gathered from the best crypto education resources worldwide.
1. Smart Contract & Ethereum
Ethereum is the second largest cryptocurrency according to world market capitalization, and we often refer to it as the “world computer.” The Ethereum network is designed as a decentralized platform for building and running applications, focusing on smart contracts.
A smart contract is a self-executing system that helps to settle agreements between buyer and seller available in lines of code. This scene means the contract can automatically execute when the platform meets certain conditions without intermediaries.
Ethereum has several features that make it an attractive platform for developers. For example, it has a built-in programming language called Solidity, making it easy for developers to write smart contracts. Additionally, the designs of the Ethereum network are scalable. It can handle many transactions per second, making it ideal for decentralized applications requiring large amounts of data.
2. Proof-of-work Consensus Mechanism & Bitcoin
Bitcoin is the largest crypto available according to market capitalization and is often considered the “gold standard” of cryptocurrencies. The Bitcoin network is a decentralized digital currency and peer-to-peer payment system that allows users to send and receive payments without intermediaries.
One of the critical features of the Bitcoin network is its decentralized nature, which means that any single entity does not control it. This offer provides a high level of security and makes it difficult for governments or other organizations to interfere with transactions. Additionally, the Bitcoin network uses a proof-of-work consensus mechanism, which requires participants to contribute computational power to validate transactions and secure the network.
3. Proof-of-stake Consensus Mechanism in Binance Smart Chain
Binance Smart Chain (BSC) is a high-performance blockchain network launched by Binance, one of the largest cryptocurrency exchanges in the world. The Binance Smart Chain is designed for decentralized applications and enables fast and low-cost transactions.
One of the critical features of the Binance Smart Chain is its scalability, which allows it to handle a large number of transactions within a short period of time. This system makes it an ideal platform for decentralized applications requiring a high volume of data. Additionally, Binance Smart Chain uses a proof-of-stake consensus mechanism. However, this system makes the network more energy-efficient than the usual proof-of-work mechanism used by Bitcoin.
4. Ouroboros and Cardano (ADA)
Cardano is a blockchain platform for secure and sustainable decentralized applications and smart contracts. It uses a proof-of-stake consensus mechanism(Ouroboros), which means that participants validate transactions by holding and staking their tokens.
One of the critical features of Cardano is its focus on sustainability, which means that it is designed to be energy-efficient and have a low carbon footprint. Additionally, Cardano uses a modular architecture that allows it to be upgraded and improved over time, making it a future-proof platform for decentralized applications.
5. Polkadot (DOT) & Parachains
Polkadot is a multi-chain network that enables interoperability between different blockchain systems. This network means that developers can build decentralized applications to communicate and transfer data between other blockchains, making it possible to create more complex and interconnected applications. In addition, Polkadot enables the transfer of assets and information between different blockchains and provides a shared security model for all connected chains.
6. Proof of Stake & Solana
Solana is a fast and scalable blockchain protocol designed for decentralized finance applications. Solana uses a unique consensus algorithm, Solana Proof of Stake (PoS), which enables it to process thousands of transactions per second. Solana strongly focuses on developer adoption and provides several tools and resources to help developers build on the platform.
7. Chainlink (LINK) & Oracle Network
Chainlink is a Bitcoin-like oracle network that is capable of supplying real-world data to smart contracts. Chainlink enables smart contracts to access data from external sources, such as stock prices, weather data, etc. This link allows the creation of decentralized applications that can interact with the real world, making it possible to create a wide range of new decentralized applications.
8. Cosmos (ATOM) & DeFi
Cosmos is a decentralized network with independent blockchains that enables the transfer of assets and information between different blockchains. Cosmos provides a shared security model for all connected chains and offers fast and secure transactions. Cosmos strongly focuses on scalability and interoperability, making it a popular choice for decentralized exchanges and DeFi projects.
9. Smart Contracts & TRON (TRX)
TRON is a decentralized platform that enables the creation of smart contracts and decentralized applications. TRON has its cryptocurrency, TRONix (TRX), used to pay transaction fees and computational services within the network.
TRON’s strong focus on the entertainment industry provides a platform for content creators to publish, store, and monetize their digital content. TRON also has a large and active community, and it has partnerships with several well-known companies in the entertainment industry.
10. Proof of Stake & Hive (HIVE)
Hive is a blockchain protocol with designs similar to decentralized social media applications. Hive provides fast and secure transactions and has a large and active community of content creators and curators. Hive is known for its focus on society and a strong culture of collaboration and engagement.
Finally, these top ten recommended blockchain protocols represent a diverse range of use cases and technologies, impacting the world of decentralized systems. Each protocol has unique strengths and weaknesses, and it is up to developers and users to determine which protocols best suit their needs. Therefore, staying informed and updated on the latest developments in the blockchain world is essential as this technology continues to evolve and mature.