Jun 24th 2022 | 09:20 | 3 min read
What is the Meaning of Blockchain Protocol?
Blockchain comprises multiple interconnected nodes. It is a peer-to-peer distributed ledger that keeps a record of all transactions after verification from the participants. Blockchain’s critical components are protocols with which businesses can share information reliably, securely, and automatically across various cryptocurrency networks. In simple words, protocols are the rules that dictate the rules for transferring data between multiple computers. Protocols have a significant impact on network performance.
Top 5 blockchain protocols That You Should know
Hundreds of protocols are floating in the digital world of blockchain development, but researching through them will consume excessive time. So we are giving you a rundown of the top 5 blockchain protocols.
1. HYPERLEDGER FABRIC
In 2015, the Linux Foundation released Hyperledger as an open-source DLT (Distributed Ledger Technology) platform. It is one of the top blockchain protocols. Hyperledger Fabric has a configurable and modular architecture that promises versatility, optimization, and innovation for various industries, including healthcare, insurance, finance, banking, and supply chain.
- First, DLT platforms that support smart contracts are authored in programming languages such as Java, Node.js, and Go.
- Permissioned network: Only known participants can view the information and the transactions. The governance model operates the network.
- Supports pluggable consensus: The platform can be easily customized for each industry use case. All you have to do is plug in and get started.
- No native cryptocurrency required
- Data is available on request
- Immutable DLT platform supporting queries
- Improving the supply chain management process
- Optimized network performance and scalability
- Fewer verification levels are required across various node types.
- Data available on a need-to-know basis
Ethereum is a distributed, open-source top blockchain platform and blockchain-based. It has its native cryptocurrency – Ether – and programming language – Solidity. Being decentralized, no one can stop you from using services or receiving payments on Ethereum. It enables blockchain-based applications and smart contracts to run seamlessly without downtime, fraud, or interference.
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- Smart Contracts: Ethereum permits to develop and deploy smart contracts.
- EVM (Ethereum Virtual Machine): With this underlying technology, you can understand and interact with smart contracts.
- Decentralized applications: With Ethereum, you can create decentralized applications – Dapps.
- DAO (Decentralized Autonomous Organizations): These are created for making democratic decisions.
- Ether: This is the native cryptocurrency of Ethereum.
- More than 40 million unique addresses
- Daily trading volume is $1.5 billion
- More than 94% blockchain is Ethereum-based
- Daily transactions are more than 500,000 plus
- More than 14,000 live nodes
- Privacy: Sometimes, enterprises need to withhold some data being shared with specific participants, which isn’t possible with Ethereum.
- Permissioned networks: The businesses can build on private or public Ethereum networks to conform to all security and regulatory requirements.
- Data coordination: Information is better allocated across the network so that participants can efficiently mediate the transactions while eradicating the need for a central authority.
- Performance: The consortium networks of Ethereum can manage hundreds of transactions every second.
- Customizable consensus mechanism: Ethereum offers a customizable consensus mechanism for different enterprise networks. This is to ensure transaction finality and reduce the infrastructural demands of the PoW (Proof of Work).
- Tokenization: Businesses can easily tokenize all the assets that are digitally registered on Ethereum. Thus organizations can expand their product line or fractionalize monolithic assets.
Polygon is a scaling solution running with the Ethereum blockchain. Plogon’s native cryptocurrency is Matic. This interoperable platform serves to grow and connect blockchains and projects that are Ethereum-compatible. Matic tokens help to make payments for the transactions and govern the Polygon network.
Polygon addresses several limitations of Ethereum, such as delayed transactions, no community governance, or poor user experience. Polygon enables developers to launch blockchain networks with tailored features per their needs. Developers can create blockchains with specific attributes as further customization is possible with several modules of Polygon. Its architecture has four layers: Ethereum, Polygon networks, Execution, and Security.
- High throughput: Enables more than 7000 tps on one sidechain.
- Availability: Polygon sidechains enable safe, quick, and low-cost transactions.
- Security: Polygon chain operators are the stakers also in the PoS system.
- Customer experience: Polygon offers a rich user experience owing to WalletConnect support and SDK and mobile apps.
- Works well for the Decentralized finance applications.
- Focuses on scale & interoperability.
- Provides various tools for scaling several dApps and blockchain protocols.
- Polygon allows blockchain to maintain autonomous status as it has an optional security mechanism.
- Polygon’s holistic approach to scaling solutions can future-proof the network. It can never be obsolete.
- Being versatile, it enables the developers to build interoperable DApps reaping the benefits of the linked blockchains.
4. AVALANCHE (AVAX)
The blockchain industry’s fastest platform for smart contracts is Avalanche which advances blockchain technology for scalability, interoperability, and usability. The Avalanche platform is capable of working on smart contracts. It delivers scalable solutions focusing on reducing operational costs, augmenting the transaction speed, and maintaining security.
Avalanche is powered by multiple consensus mechanisms and Avalanche AVAX – (native utility token). This token is the currency used for operating in the avalanche ecosystem for incentives or fee collections. It provides an alternate option for Ethereum. It addresses two significant issues of congestion and higher gas fees. It intends to tackle these problems by employing three different blockchains that make for its main net – X-chain (to manage assets), C-chain (build smart contracts), and P-chain (for coordinating validators).
- Current worth of Avalanche TVL is $8.41 billion.
- Addresses all the significant concerns of Ethereum
- AVAX is one of the most widely used cryptocurrencies.
- Smart contract-enabled platform
- Achieved fastest finality-time for various blockchain transactions
- After achieving finality, no one can alter transactions.
- Scalability: In comparison to other blockchains that require professional computing and energy; and have the limitation of processing only 15 tps, scaling is a primary concern. Avalanche boasts of high tops and tremendous processing capacity.
- Interoperability: Avalanche allows data sharing and interoperability of various blockchains.
- Easy-to-Use: Avalanche has high usability and easy implementation in different applications.
5. IMMUTABLE X
Developers created Immutable X primarily to augment Ethereum’s scalability for the NFT projects. It offers a layer 2 solution for various NFT collections placed on Ethereum. With this platform, users can easily trade and mint digital collectibles. Starkey technology – zero-knowledge-rollup powers the immutable X.
With this technology, the NFT creators and game developers can have negligible gas rates for mining and trading the NFTs in a carbon-neutral ecosystem.
It shelves some of the best services for trading, such as world-class security and transparency. This platform lets you seamlessly create and scale your NFT business by employing the portal’s powerful tools and services. It is more ethical in comparison to bitcoin. It has gained popularity as a more viable solution for blockchain gaming projects.
- Ability to set individual trading fee
- P2P trading has no gas fees
- Users access their private keys with zero custodial risks
- Enormous scalability. Nearly 9000 tps
- 100% carbon neutral NFTs traded on this platform
- Users can trade the assets instantly
- Trade confirmations are given instantly
- NFT trading and minting have zero gas fees.
- Asset security is guaranteed
- Ethereum’s top layer-2 solution
- Lowers the barriers for developers and content creators who find it daunting to create their platforms.
- Enables the users to check the entire trade history, including the previous transactions.
As long as there is a problem, a solution will exist too! If you are also facing problems with business growth and lesser revenue streams, Chaincode consulting brings exclusive and best blockchain development solutions to help you scale your growth. Request a consultation now.
Top 8 Use Cases Of Blockchain That are set out to Reshape The Healthcare Sector
Blockchain has become synonymous with technological transformation and revolution. We all have heard about blockchain in relation to finance, metaverse, NFTs and cryptocurrencies. But do you know that there are pivotal applications of blockchain in the healthcare domain too? Yes!