BLOCKCHAIN COMPARISON OF DIFFERENT CRYPTOCURRENCY PROJECTS.
◽️ Bitcoin BTC
One of the main ideas of First Cryptocurrency, which appeared in 2009, is decentralized anonymous transactions that would be completely independent in external financial management — the BTC Blockchain.
The main disadvantages of BTC blockchain are:
• low-speed of work — can’t process more than seven transactions per second;
• high network fees;
• the increasing complexity of mathematical calculations for mining new blocks makes it impossible to confirm user blocks without high-tech equipment.
Further development of blockchain technology solves many problems inherent with the first cryptocurrency and develops practical solutions
◽️Litecoin LTC
Launching Litecoin LTC in 2011, Charlie Lee’s project was positioned as “silver” compared to “gold” Bitcoin.
They managed to increase the speed of transactions eight times and significantly reduce their cost.
◽️Ripple XRP
This cryptocurrency appeared in 2012 and constituted the RippleNet payment network used by central banks and financial institutions.
Ripple works very differently than other digital currencies, which has led some to question its merits as a truly decentralized cryptocurrency.
The most substantial benefit is lightning transaction speed — up to 1,500 transactions per second.
The most significant disadvantage is centralization.
◽️Ethereum ETH
The concept was proposed in 2013 by Vitalik Buterin, and it was launched in 2015.
Ethereum is the first decentralized platform that has become a benchmark for the next generation and opened up a whole industry of new possibilities.
It allows deploying the smart contracts on the Ethereum blockchain quickly.
Benefits:
• greater openness
• huge popularity
• cooperation with reputable organizations
• dominating platform for ICO, Dapps, Defi.
Disadvantages:
• the network vulnerability to overloads
• low speed
• very high network commissions during peak loads
• errors in smart contracts
Switching to a different Proof-of-Stake consensus algorithm will eliminate almost all the network’s disadvantages. However, the Ethereum 2.0 network runs parallel to the leading network in test mode.
◽️Binance Smart Chain
Binance Smart Chain, launched in September 2020, is a blockchain service that allows developers to create their decentralized apps using smart contracts.
The original Binance Chain could not provide this functionality. However, the Binance Smart Chain is designed to offer both fast transactions and significantly expand its capabilities.
The Binance Smart Chain is fully compatible with the Ethereum Virtual Machine (EVM), which means that decentralized applications can be transferred from Ethereum and then potentially enhanced and extended in the Binance Smart Chain.
Benefits:
• world-famous name;
• massive popularity of the trading platform;
• ambitious funding — $ 100 million was directed to finance and support Defi projects, developed on the Binance Smart Chain;
• network fees are significantly lower than Ethereum.
Disadvantages:
• the popularity of BSC is not yet sufficient to take over the leadership from Ethereum.
Perhaps in the next year or two, Binance Smart Chain will become the leading blockchain platform for decentralized applications.
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