Have you ever wondered what exactly blockchain is and how it works? It seems to be a buzzword that gets thrown around a lot these days, but many people are still unsure of its true meaning and potential.

Blockchain technology has gained a lot of attention in recent years, especially with the rise of cryptocurrencies such as Bitcoin. However, its applications go far beyond just digital currencies. Understanding the concept of blockchain is crucial as it has the potential to disrupt various industries and revolutionize the way we transact and store data.

Hello, I’m Zifa. As a long-time crypto enthusiast and writer, I’ve prepared this article to give you a clear understanding of blockchain. We’ll go over the basics, discuss the benefits, and address some of the challenges. Let’s dive in!

What is Blockchain Technology?
Blockchain technology is a decentralized ledger system that uses a distributed network and cryptographic hash to securely record and verify transactions.

Blockchains are designed to make data secure and increasingly difficult to change, by providing a secure, immutable and distributed ledger shared across a network of computers.

These distributed ledgers are the backbone of cryptocurrencies like Bitcoin, but DeFi applications have expanded far beyond their original use cases to form the basis for NFTs and smart contracts.

What is Blockchain in Simple Terms?
A blockchain is like a shared database or ledger where information is stored in blocks. Let me explain this concept by comparing it to a more mundane tool, Google Docs.

At first glance, blockchain and Google Docs may seem worlds apart: one is the cutting-edge technology underpinning cryptocurrencies, the other a popular online word processing tool. However, a closer look reveals some interesting parallels:

Real-time Collaboration and Transparency: Just as multiple users can access, view and edit a Google Docs document at the same time, participants in a blockchain network can see transactions added in real-time. This transparency ensures that everyone is on the same page, literally in the case of Google Docs and figuratively in the case of blockchain.
Decentralized Access: Traditional word processors save documents on a single computer. If you want someone else to view or edit it, you need to send them a copy. This is similar to centralized databases or systems. Google Docs, on the other hand, is cloud-based and allows multiple users to access it without sending copies back and forth. Similarly, blockchain works on a decentralized model. Instead of a central authority holding the master copy, each participant (or node) in the network has a full copy of the blockchain.
Immutable History: Google Docs has a Version History feature. It allows users to view past document versions and see what changes were made, when and by whom. The blockchain works on a similar immutability principle. Once a transaction is added to a block and that block is added to the chain, it is almost impossible to change this information without changing every subsequent block, which requires the agreement of the majority of the network. This ensures that transactions are recorded in a permanent and tamper-proof way.
Reconciliation and Validation: In Google Docs, if two users are editing the same line at the same time, the software can flag a conflict and require users to review and decide on the final version. Blockchain also works by consensus. Before a transaction can be added, network participants (or at least a majority of them, depending on the type of blockchain) must verify and agree on the legitimacy of the transaction.
Security through Transparency: One might think that having data visible to many people would be a security concern. However, both Google Docs and blockchain turn this transparency into a security feature. In Google Docs, real-time visibility means that unauthorized changes can be quickly detected. The decentralized and transparent nature of the blockchain makes malicious tampering evident, as changing data would mean changing it across the majority of nodes, which is computationally impractical.
Why Blockchain Matters
Blockchain’s importance stems from its transformative potential across sectors. It offers unparalleled transparency with an immutable ledger, increasing trust in sectors such as banking, supply chain and healthcare.

How to Use Blockchains?
Blockchains find many applications in different sectors and industries.

Financial Transactions: The decentralized and transparent nature of blockchain offers a secure way to conduct financial transactions, reducing the involvement of intermediaries and the risks of fraud.

Healthcare: Blockchain can revolutionize medical records management. It securely stores patient data, supports privacy and facilitates efficient sharing between healthcare providers. I previously published an article examining blockchain applications in the healthcare sector.

Banking and Finance: Blockchain speeds up interbank payments by bypassing intermediaries. Transactions are settled in minutes and transparency minimizes fraud risks. Institutions like Singapore Exchange Limited (SGX) have adopted blockchain to streamline business processes and reduce costs and time. Learn more about blockchain in banking in this article.

Currency: Blockchain offers a stable financial system by reducing risks and transaction fees.

Property Records: Blockchain can modernize property records management. It ensures accurate and transparent recording of property rights, reducing disputes and fraud. Digital property records on the blockchain also keep the risk of loss or destruction at bay.

Smart Contracts: These are programmed agreements that are automatically executed according to set conditions. Smart contracts are embedded in platforms such as Ethereum. They facilitate asset transfers, making transparent and tamper-proof transactions a reality.

Supply Chains: Blockchain’s ability to track product journeys from source to destination ensures quality control and increases brand trust. It also simplifies processes, reducing paperwork and increasing efficiency. I wrote about blockchain in supply chain management in this article.

Voting: Blockchain can improve voting integrity by preventing fraudulent transactions. Every vote becomes an immutable record, ensuring transparency and trust in election results.

The potential applications of blockchains are vast and continue to expand as more industries realize the benefits and potential of this innovative technology.

What are the Key Components of Blockchain Technology?
At its core, blockchain consists of three main components: cryptographic keys, a computer network and a shared public ledger.

Cryptographic keys secure and authenticate transactions: only authorized parties can access and modify data.

The network of computers, also known as nodes, work together to verify and record transactions on the blockchain.

Finally, the blockchain ledger is a digital database that stores all transaction data in a chronological and immutable way.

These three components work together to create a secure and transparent system that can be used for a wide range of applications, from financial transactions to supply chain management and even health records.

What is a Block?
In the context of blockchain technology, a block can be seen as a container that holds a set of data. It is the basic building block of a blockchain network.

A block consists of three basic elements: the data it holds, the nonce and the hash. The data within a block can vary depending on the specific blockchain implementation, but it usually contains transaction information or related data that needs to be stored securely.

Short for “number used only once”, a nonce is a random number generated during the mining process. Its purpose is to add additional complexity to the block header hashing process.

A hash is a unique fingerprint representing the contents of the block. It is created by passing the block data and nonce through a cryptographic hashing algorithm. This hash acts as the digital signature of the block, ensuring its integrity and providing a way to link to the previous block in the blockchain.

The combination of data, nonce and hash in a block creates an immutable relationship. This makes it easier to detect any tampering attempts, as any change to the data or nonce will result in a completely different hash. This immutability guarantees the security and integrity of the blockchain network.

In a nutshell, a block in a blockchain network is a container that holds data. The data itself consists of a nonce and a hash. The immutability of data, due to its link to the nonce and hash, is fundamental to the security and reliability of blockchain technology.

What is Public Key Cryptography?
Public key cryptography is a fundamental component of blockchain technology as it protects the security and integrity of transactions. It involves the use of two keys: a public key that is openly shared and a private key that is kept secret.

In the context of blockchain, when a transaction is created, the sender uses their private key to sign it and create a digital signature. This signature is then verified through the sender’s public key. Only the corresponding private key can be used to create a valid signature, making it virtually impossible for anyone else to tamper with the transaction.

The transaction receiver uses the sender’s public key to verify the transaction. This process ensures that the transaction is not altered or manipulated during transmission. If the verification process is successful, the transaction is considered valid and added to the blockchain.

Public key cryptography provides a high level of security in blockchain networks as it allows users to verify data integrity without revealing their private keys. It also provides secure digital identities, making it possible for participants to maintain their privacy while continuing to participate in the network.

What is a Miner in Blockchain?
A miner in the blockchain is an important participant in creating new blocks and maintaining the integrity of the decentralized network. Miners solve complex mathematical problems to verify and add new transactions to the blockchain.

When a new block of transactions needs to be added to the blockchain, miners race to solve a mathematical puzzle. This puzzle requires significant computational power and involves finding a “golden nonce” – a random number that, when hashed against the block’s data, produces a hash that meets certain criteria set by the blockchain protocol. Finding this golden nonce requires trial and error, with miners trying multiple combinations until they find the right one.

The difficulty of manipulating blockchain technology lies in the computational power required to solve these complex math problems. As the network grows, the difficulty of the puzzles increases, making it even more difficult to manipulate the blockchain.

When a miner successfully finds the golden nonce and solves the puzzle, they broadcast the new block to the network and other nodes verify it and add it to their own copies of the blockchain. As a reward for their efforts and to incentivize continued mining, the miner who successfully mines a block is awarded a certain amount of digital currency, usually Bitcoin.

In summary, miners play a crucial role in maintaining the integrity of the blockchain network by creating new blocks by solving complex math problems. The difficulty of manipulating the blockchain and the rewards received by miners ensure the security and stability of the blockchain system.

What is Nonce in Blockchain?
Miners generate random 64-bit hexadecimal numbers – nonces (numbers used only once) – as fast as possible. In Bitcoin mining, a nonce is 32 bits and a hash is 256 bits. The first miner to produce a nonce equal to the target hash receives a reward.

As mentioned above, the blockchain is a great database that stores data in the form of blocks, meaning the system is structured. Each block holds a certain amount of information. The capacity of a block on the Bitcoin network is 1,000,000 bytes or 1 megabyte. A BTC block also contains its own hash and the hash of the previous block. Bitcoin miners produce a block every ten minutes. The Bitcoin network is capable of generating about seven transactions per second.

What is Decentralization in Blockchain?
Decentralization is a key concept in blockchain technology because of what it means for its integrity and trustworthiness. It refers to the decentralization of power, decision-making and data to a network of participants rather than relying on a central authority. This decentralization provides several important benefits.

In the context of blockchain, decentralization is achieved through a distributed ledger that acts as a transparent and tamper-proof record of all transactions. The ledger is not stored in a single location, but replicated across multiple network nodes, creating redundancy. Thanks to this redundancy, even if a node fails or is compromised, the data is accessible and the network continues to function smoothly.

Another important component of decentralization is cryptographic proof. Each transaction added to the blockchain is encrypted and associated with the previous transaction using cryptographic algorithms. This contributes to the immutability of the data, preventing unauthorized changes or tampering.

Decentralization ensures a higher level of trust and integrity in the system. With no single point of control, it becomes extremely difficult for malicious actors to manipulate data or conduct fraudulent activities. This creates a high level of trust between participants, allowing for secure and transparent transactions.

Furthermore, decentralization provides scalability, as the network can be easily expanded by adding more nodes. This scalability removes the limitations of traditional centralized systems, making blockchain technology suitable for a wide range of applications beyond financial transactions, such as supply chain management and medical records.

What are the Layers in Blockchain?
There is the concept of building multiple blockchain layers – i.e. blockchain layers – on top of each other, each with its own consensus mechanisms and functionality. This approach allows for greater scalability and flexibility in blockchain networks.

At the base layer, the underlying blockchain provides the basic infrastructure and security for the entire system. It enables transactions to be verified and confirmed using a consensus mechanism such as proof of work or proof of stake. This layer protects the immutability and integrity of the data stored on the blockchain.

On top of the base layer, additional layers can be built to increase the functionality of the blockchain network. These layers can be customized with specific features and consensus mechanisms to suit different applications or industries. For example, the Lightning Network is a second layer solution built on top of the Bitcoin blockchain. It enables faster and cheaper transactions by creating payment channels between participants, reducing the burden on the main blockchain.

As blockchain layers distribute the workload across multiple layers and consensus mechanisms, their use increases scalability. This increases transaction throughput and improves network performance.

How Does Blockchain Work?
Let’s examine the mechanisms underlying blockchain technology and explore its core processes.

Step 1 – Start the Process
A blockchain transaction is a record of an exchange of assets between two or more parties on a distributed ledger. It can be used for many different types of exchanges, such as the transfer of real-world currency, valuable goods, services, commodities and even property titles. The details recorded in the data block include who was involved in the transaction (sending/receiving) and when and where the transaction took place.

This information can provide a comprehensive history of all transactions within the network, which can be extremely valuable for understanding how assets are exchanged between the various participants. Furthermore, unique identifiers such as timestamps are used to prevent later modification or misuse. As a result, blockchain transactions are immutable and secure against illegitimate actors seeking to manipulate or steal data or assets on the network.

Step 2 – Build Consensus
In a distributed blockchain network, establishing consensus is a critical step to ensure that recorded transactions are valid and accepted by all participants. Consensus refers to the collective agreement between network participants on the validity and order of transactions on the blockchain.

To achieve consensus, network participants need to agree on the authenticity and integrity of recorded transactions. This agreement is achieved through a consensus algorithm or protocol that sets the rules for verifying and validating transactions.

Specific agreement rules can vary depending on the type of network, such as a public or private blockchain, and are usually set at the outset. For example, on a public blockchain like Bitcoin, consensus is achieved through the proof-of-work algorithm, where miners compete to solve complex mathematical puzzles.

Once a group of transactions is selected to be added to the block, miners validate the transactions according to agreed rules. If the majority of miners agree that the transactions are valid, consensus is reached and the block is connected.

Since participants must mutually agree on the validity and order of transactions, consensus guarantees that the blockchain remains secure and reliable. This distributed consensus mechanism eliminates the need for a central authority and allows for a transparent and decentralized network.

What is proof of work and how is it different from proof of stake?
Proof of work (PoW) and proof of stake (PoS) are consensus mechanisms in blockchains.

PoW requires miners to solve cryptographic puzzles to validate blocks and earn rewards, and consumes significant amounts of energy for this purpose.

PoS reduces energy usage by allowing users to “stake” cryptocurrency to validate blocks based on the amount they hold. While both secure blockchains, PoW is energy intensive while PoS is more environmentally friendly and cost-effective. At its core, PoW is based on puzzle solving, while PoS is based on coin ownership and staking.

Step 3 – Connect the Blocks
In blockchain technology, the process of linking blocks together is vital to protect the integrity and security of recorded transactions. Transactions are written in blocks, which are then linked together to form a chain known as a blockchain.

Once a group of transactions has been verified and agreed upon, it is saved in a new block. Each block contains a unique identifier called a cryptographic hash, which is generated through a complex mathematical algorithm. This hash acts as a digital fingerprint representing the data contained in the block.

The cryptographic hash plays a crucial role in chaining blocks together. When a new block is created, it contains the hash of the previous block, so these blocks are directly linked together and form a chain. Any attempt to change the data within a block causes a change in the block’s hash value. This will break the hash chain, alerting the network to potential data tampering.

Blockchain technology enhances the verification process through cryptographic hashes. The hash of each block acts as a secure reference, creating an immutable record of transactions. This not only strengthens the security of the blockchain, but also increases trust in the system by providing a reliable method to detect unauthorized changes to data.

Step 4 – Share the Notebook
In a blockchain network, the latest copy of the central ledger is distributed to all participants to promote transparency and consistency among them. The process of sharing the ledger is one of the key aspects of blockchain technology.

The central ledger containing all recorded transactions is shared over the distributed blockchain network. When a new block is added to the chain, it is immediately transmitted to all participants in the network. Thanks to this mechanism, every participant has access to the most up-to-date version of the ledger.

Sharing the ledger is important because it allows all participants to have a synchronized view of transactions. It also promotes transparency as everyone can independently verify and confirm transactions recorded on the blockchain. This transparency reduces the need for trust in centralized authorities, as participants can rely on the shared ledger for accurate and reliable information.

Also, sharing the notebook increases consistency among participants. Since everyone has the same copy, there is no room for inconsistencies or conflicting versions. Any changes or updates to the ledger are instantly reflected across the entire network, maintaining a consistent and unified view of transactions.

What are the Types of Blockchain Networks?
Blockchain networks vary in accessibility and participation in the consensus process. The main types are public, private, consortium and hybrid blockchains.

Public Blockchain Networks: Open to everyone, these decentralized networks, such as Bitcoin and Ethereum, allow for unlimited participation. Transactions are transparent and verified by a distributed network of nodes. Popular for cryptocurrency trading, these systems introduced the concept of distributed ledger technology (DLT), which offers security advantages over centralized systems.

Private Blockchain Networks: Limited to invited participants, these networks are controlled by a single entity. They offer customization, scalability and enhanced privacy. Ideal for organizations, these systems ensure that sensitive data remains in a trusted environment.

Hybrid Blockchains: Combining features of both public and private blockchains, hybrid networks offer selective transparency. Some data remains private, accessible only to authorized participants, while other data is public. Hybrid Blockchains use smart contracts for secure private transactions, making them suitable for scenarios that require both privacy and transparency.

Consortium Blockchains: Consortium blockchain platforms, managed by a group of organizations, allow for collaborative verification of transactions. They are useful for supply chain management, where stakeholders need transparent product tracking, and financial services, where institutions can jointly conduct secure transactions.

Fundamentally, the choice of blockchain type depends on the desired balance between transparency, privacy and collaboration needs.

What are the Benefits of Blockchain Technology?
Blockchain technology, initially the driving force behind cryptocurrencies, has now outgrown its original domain and is making waves across a variety of sectors. From finance to healthcare, supply chain to real estate, its transformative potential is being recognized and harnessed. But what makes this technology so universally appealing?

Enhanced Security:
Cryptography: Blockchain uses complex mathematical algorithms to encrypt transaction data, ensuring its privacy and resistance to tampering.
Decentralization: Instead of a centralized control point, blockchain runs on a distributed network of nodes. This structure eliminates a single point of failure, making the system more resilient to breaches.
Consensus Mechanisms: Methods such as proof of stake and proof of work add another layer of security by verifying transactions. With these mechanisms in place, all network participants agree on the validity of transactions.
Increased Efficiency:
Eliminating Intermediaries: The decentralized nature of blockchain allows for direct peer-to-peer interactions, eliminating the need for intermediaries and the associated delays.
Smart Contracts: These are self-executing contracts with terms and conditions written directly into lines of code. They automate and enforce agreements by eliminating manual interventions and reducing negotiation times.
24/7 Operation: Blockchain networks run continuously, enabling faster transactions – international transfers especially benefit.
Transparency and Trust:
Public Ledger: All transactions on a blockchain are recorded in a public or permissioned digital ledger that is visible to participants. This transparency ensures that all parties can verify and trust the recorded data.
Immutable History: Once a transaction is added to the blockchain, it cannot be changed.
Cost Savings:
Automation: Blockchain’s ability to automate various processes, especially through smart contracts, minimizes manual efforts and associated costs.
Reduced Transaction Fees: By eliminating intermediaries such as banks, blockchain can significantly reduce transaction fees and make transactions more cost-effective.
Improved Data Integrity:
Immutability: One of the key features of blockchain is that once data is recorded, it cannot be changed or deleted.
Reliability: The decentralized nature of blockchain means that data is stored on multiple nodes, reducing the risks of data loss or system failure.
Faster Inspection:
Transparent Records: Auditors can quickly access and review the entire transaction history on the blockchain, speeding up the audit process.
Reduced Verification Time: The transparent and immutable nature of blockchain transactions eliminates extensive data validation, making audits more efficient and accurate.
Electronic Transaction Benefits: Blockchain helps create, exchange, archive and reconstruct digital transactions, providing a reliable and efficient audit trail.
Disadvantages of Blockchain
While blockchain technology offers numerous advantages, it also has limitations.

Scalability Concerns
Scalability remains a major concern, especially with legacy blockchain systems such as Bitcoin. As these early blockchain networks grow and see greater adoption, they often encounter bottlenecks, leading to slower transaction processing times and increased costs. While blockchain promises decentralization and security, its initial architecture struggles to keep up with the transaction speeds of traditional centralized systems. However, newer blockchains have recognized and addressed this problem and implemented solutions to increase scalability. This evolution is crucial to the wider adoption of blockchain technology and its potential to revolutionize industries.

High Energy Costs in Blockchain Technology
Blockchain mining consumes large amounts of energy, especially in proof-of-work systems like Bitcoin. This consumption is due to the need to solve complex mathematical puzzles to verify transactions. The environmental consequences, including increased carbon emissions, are of concern. Such energy demands also hinder the wider adoption of blockchain. However, alternative models such as proof of stake, which reduce energy consumption by eliminating resource-intensive calculations, are gaining popularity. Adopting such energy-efficient mechanisms could make blockchain more sustainable and environmentally friendly.

Risk of Asset Loss in Blockchain
The decentralized nature of blockchain poses a risk of asset loss, especially if private cryptographic keys are misplaced. Unlike traditional systems where account recovery is possible, blockchain transactions are irreversible. The loss of the private key means the permanent loss of the associated digital assets. To minimize this risk, it is crucial to securely store private keys, back them up regularly and maintain robust security practices.

Potential for Illegal Activity on Blockchain
Blockchain, due to its privacy features, can inadvertently facilitate illegal activities. Although it provides transparency, it also creates challenges for law enforcement in tracing illegal transactions.

The decentralized nature of blockchain makes it difficult to trace transactions. The example of Silk Road, an online marketplace known for illegal drug sales and money laundering, which uses the pseudonym of blockchain, is quite telling.

But blockchain is not completely anonymous. While traditional financial systems have regulations in place to prevent illegal activities, blockchain’s features can attract those who want to bypass them. Efforts are underway to address these risks and develop regulatory frameworks for blockchain.

How Blockchain Technology Evolved
Since its inception in 2008, blockchain technology has evolved rapidly. Originally conceived as the basis for Bitcoin, it has evolved far beyond cryptocurrency. Over time, the technology has evolved and various types of blockchain networks and platforms have emerged.

First Generation – Bitcoin and Cryptocurrencies
The first generation blockchain spawned Bitcoin and other cryptocurrencies, introduced by the enigmatic Satoshi Nakamoto.

Nakamoto’s whitepaper presented a decentralized ledger for secure and transparent digital currency transactions using 1 MB blocks for Bitcoin transactions. The principles Nakamoto laid out, such as decentralization, cryptographic security and an immutable ledger, remain fundamental.

The emergence of Bitcoin marked a paradigm shift in financial transactions, enabling global peer-to-peer exchange without traditional financial intermediaries. This breakthrough set the stage for further blockchain developments.

Second Generation – Smart Contracts
The second generation blockchain is characterized by the emergence of smart contracts that digitize and automate contractual agreements.

Smart contracts are a groundbreaking feature in the world of blockchain technology. By leveraging a distributed ledger, they can enable the secure and reliable exchange of goods and services. Records of these digital contracts are stored on-chain and implemented with public key cryptography, which ensures that all parties involved in the transaction are legitimate.

Unlike traditional legal contracts, smart contracts provide automatic execution when conditions on both sides of the agreement are met. This eliminates the need for manual intervention by third parties such as legal oversight, making it much more cost-effective and time-efficient.

Third Generation – Looking Ahead
The third generation of blockchain technology heralds the future by addressing challenges faced by previous generations, such as scalability and computational power. Significant investments are being made to develop blockchains that can quickly process large transaction volumes.

Innovations such as sharding, layer 2 protocols and consensus mechanisms (e.g. proof of stake) increase scalability. This generation unlocks a multitude of applications, from supply chains to healthcare and finance. With advances in privacy, interoperability and governance on the horizon, third-generation blockchains are poised to offer even broader possibilities.

In conclusion, the future of blockchain is brimming with potential. It is ushering in an era of decentralization, transforming the way we manage and transact digital assets. As research and blockchain adoption progresses, the technology promises to redefine numerous industries in our digital age.

Blockchain, Explained: FAQ
Who invented the blockchain?
The concept of blockchain was first introduced by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. In 2008, Nakamoto published a whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System”, which outlined the design and functionality of blockchain technology.

Are you curious about Satoshi’s real identity? I have collected everything we know about him in this article.

How many blockchains are there?
As of 2023, there are over 1,000 blockchains in circulation. The wide variety of blockchains reflects the different applications of blockchain technology in various industries such as finance, supply chain management, healthcare and more. The continuous increase in the number of blockchains underscores the ongoing development and innovation in the blockchain space.

How many cryptocurrencies have their own blockchain?
There are currently around 8,900 cryptocurrencies with their own blockchain.

What is a node in a blockchain?
A node in the blockchain is a computer that participates in the blockchain network by maintaining a copy of the distributed ledger. Full nodes store the entire blockchain and validate transactions, while miner nodes aggregate transactions into blocks. Lightweight nodes only download block headers, relying on full nodes for detailed data. Archive nodes store the entire history, and in some blockchains, validator nodes validate and add new transactions. The nodes collectively ensure the decentralization, security and resilience of the network.

What is an example of blockchain?
Bitcoin is the pioneering blockchain, but there are many other notable blockchains developed for various purposes:

Ethereum is another leading blockchain platform known for smart contracts and the Ethereum Virtual Machine (EVM). Its innovations allow developers to create decentralized applications (dApps) on its platform.

Ripple (XRP Ledger) is primarily designed for payment and remittance services and aims to facilitate real-time, cross-border transactions between financial institutions at lower costs.

Often considered the silver to Bitcoin’s gold, Litecoin offers faster transaction times and a different hashing algorithm.

Cardano aims to create a more secure and scalable blockchain and is known for its research-driven approach.

Binance Chain is the native blockchain of Binance, one of the largest cryptocurrency exchanges in the world. It supports the Binance Coin (BNB) cryptocurrency.

EOS aims to offer a platform that surpasses its competitors in efficiency by focusing on scalability and user-friendliness for dApps and smart contracts.

These are just a few examples and there are many other blockchains, each with their own unique features, consensus mechanisms and use cases.

Disclaimer Please note that the content of this article is not financial or investment advice. The information provided in this article is solely the opinion of the author and should not be considered as offering trading or investment advice. We do not guarantee the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader or regular crypto users should research multiple perspectives and familiarize themselves with all local regulations before making an investment.