Features of Blockchain Networks

The conversation about blockchain networks should start with a reminder that it was Bitcoin who has become a pioneer in the field of blockchain technology. And since the advent of the first blockchain, their number has grown many times, numbering today hundreds, if not thousands of networks.

This number includes personal, private and corporate chains. It should be remembered that each blockchain has its own structure, protocols, consensus, etc. It is the internal structure and the variety of technical solutions of any blockchain that affect the principles of its operation in a particular network for the end user.

As the popularity of all kinds of decentralized innovations grows, blockchains themselves, as systems, have also received a powerful impetus for development. This, in turn, has led to the desire of many companies to ensure their business success using blockchain services.

Variety of blockchain networks

Today, there are several main blockchains that have a large number of applications, services and protocols with the ability to combine and interact with each other. Analyzing their functioning, we can confidently assert that crypto currency networks can constantly expand by creating new blockchain-based applications.

The more services and platforms are launched on the basis of some kind of blockchain, the larger and larger this network becomes. It is no secret that each such network has its own currency or, in other words, a native token designed for internal interaction. Most often, the name of the native token is similar to the name of the blockchain itself.

In order to carry out any operation or use any application, interaction with the blockchain is necessary, i.e., in other words, it is necessary to change the state of the blockchain. And the change in the state of the blockchain occurs with the help of various transactions that are paid for by the coins of every particular network.

Here are some examples of the currencies of the most popular blockchains: ETH for ETHEREUM, BNB for BNB CHAIN, SOL for SOLANA, MOON for TERRA, AVAX for AVALANCHE, TRIX for TRON, MATIC for POLYGON, etc.

Interaction of various blockchain networks

The functioning of the ETHEREUM network is based on a special virtual environment or virtual machine – EVM. Inside the virtual machine, the interaction between the nodes takes place, namely: transaction processing, calling smart contracts, etc. The virtual machine is also the infrastructure through which other blockchains can be created.

An example of this is networks such as BNB CHAIN, AVALANCHE, POLYGON, etc. These networks are not only compatible with each other, but also compatible with ETHERIUM, since the aforementioned virtual environment is the basis of their infrastructure.

It is thanks to the virtual machine that it is easier for developers to create applications and services, since there is already a ready-made base for use in development and there is no need to write code from scratch.

However, such interaction of networks does not mean at all that these networks are identical, since each network has its own consensus mechanism, technical solutions, features of operation, etc.

In addition to its own currency, other coins can exist within each network. In addition, blockchains are also the basis for the creation of various tokens that can be used both within the platform or network, and on other platforms or networks.

This possibility is provided by the creation of a certain standard for issuing tokens. However, it should be noted that it is impossible to use tokens of one standard in some other network, so there are many solutions that facilitate the transfer of assets between networks. These solutions are kind of blockchain bridges.

Each crypto currency network is unique and has its own characteristics and properties, and each network has its own purpose. In addition to unique networks, there are also universal blockchains, within which you can create any application. It is obvious that the family of blockchain networks continues to expand, as specialized blockchains are being developed, for example, the Flow blockchain. It is designed to create games, applications and assets for players.

Choosing the Right Blockchain

Within any network, there are various applications, they are divided into certain categories: wallets, oracles, exchanges, payments, infrastructure, NFTs, as well as applications related to decentralized finance. These ecosystems are constantly evolving and replenished with new solutions and protocols.

Therefore, users can choose a network depending on their goals and the amount of deposits. However, when making a decision, one should not forget that most projects within the networks, as well as the networks themselves, are popular and in demand due to some hype around crypto currencies, decentralized finance, NFTs, etc.

At the same time, most of them either have no value or are copied from more reliable and popular platforms in other networks, which is important to consider when choosing a particular network, as well as projects for investment.