Other blockchains
Bitcoin used a series of previous studies on cryptography and blockchains to lay the foundations for the technology we know today. However, over time, new needs arose, such as greater scalability, more memory capacity, and different approaches, which led to the emergence of other blockchains.
Distributed ledger technology has changed significantly since Bitcoin's emergence in 2009 and has experienced exponential growth, giving rise to numerous innovative applications in various sectors.
Although Bitcoin and Ethereum are two of the best known blockchains, there are many more. These new ecosystems have been created for different reasons:
- Improvements in technology: As technology has evolved, new protocols have been created with technical improvements in infrastructure and consensus mechanisms, such as greater scalability, faster transaction speeds, and security enhancements.
- Different approaches and objectives: While Bitcoin and Ethereum are general-purpose platforms, other blockchains have been created with specific goals in mind. For example, some focus on privacy and security, while others focus on token exchange or the creation of decentralized applications (dApps).
- Competition: As in any other market, competition is a driving force in the sector. Many blockchains have been created to compete with Bitcoin and Ethereum and offer a more scalable alternative and functionalities. y ofrecer una alternativa más rápida y segura.
- Scalability issues: Bitcoin and Ethereum have experienced scalability problems due to the great number of users and transactions carried out in their networks. The new protocols have been created primarily to address these issues and enable a higher volume of transactions on their network.
To sum up, the creation of new blockchains is due to the need of improvements in technology, specific approaches and objectives, competition, and scalability issues in existing ones.
Polygon (POL)
Polygon is a blockchain that seeks to address both scalability and cost issues on the Ethereum network.
Polygon works by creating a sidechain separate from the original Ethereum network, so that transactions are validated independently and more quickly on this sidechain and then entered in aggregate and summarized form into the original Ethereum blockchain.
This allows for a maximum validation volume of 65,000 transactions per second, a thousand times more than on the Ethereum network.
Applications and smart contracts that run on Ethereum can also run on Polygon, as it also supports EVM.
Polygon has its own native token, POL (previously MATIC), created on the ERC-20 standard, which is used as the platform's currency and to pay transaction fees on the network and as an incentive for validators. Polygon's consensus mechanism is proof-of-stake.
Cardano (ADA)
Cardano is a “third-generation” blockchain (bitcoin would be the first and Ethereum the second generation), whose native token is ADA and which focuses on addressing the scalability, privacy, interoperability and sustainability issues of the Ethereum network.
Cardano uses a consensus protocol called Ouroboros, which is based on the concept of Proof of Stake (PoS), separating transaction validation from application execution into two different layers, facilitating scalability.
Solana (SOL)
Solana is another “third-generation” blockchain, whose native token is SOL, and which focuses on improving the scalability and speed of the Ethereum network.
Solana works through its own protocol consensus called Proof of History (PoH), which is a consensus protocol similar to Proof of Stake (PoS) but incorporates a “timestamp” on each transaction. This allows validator nodes to act more efficiently in the validation process, without having to spend time and resources determining the order in which the transactions they validate are carried out.
Polkadot (DOT)
Polkadot is another “third-generation” blockchain” which focuses on interoperability between its different blockchains and the exchange of information between them.
This allows developers to create decentralized applications (dApps) that can operate on multiple blockchains instead of relying on just one. This is achieved thanks to the existence of a main chain (called Relay Chain) and different alternative chains (parachains). The main chain functions as a coordination mechanism, periodically checking the accuracy of the information on each of the alternative chains.
Avalanche (AVAX)
Avalanche is another “third-generation” blockchain” which focuses on scalability, interoperability, and security for the development of decentralized applications (dApps). Avalanche's native token is AVAX, which is used as the platform's currency to pay transaction fees and as a governance mechanism on the platform. AVAX holders have the right to vote on proposals and improvements to the platform, among other things.
Avalanche offers three independent but interconnected networks
- Exchange-chain (X-chain) responsible for the transfer and economic registration of AVAXencargada de la transferencia y registro económico de AVAX
- Platform-chain (P-chain) focused on governance
- Contract-chain (C-chain)which is the network dedicated exclusively to the execution of smart contracts.
Avalanche allows developers to create their own custom subnets within the network using “cross-chain bridges”. Avalanche uses a consensus mechanism called “snowball’ which is based on the random selection of validators.
In addition, Avalanche has established a partnership with Chainlink, a special blockchain platform known as an oracle, which can take information from the real world and pass it on to the blockchain, allowing developers to access real-time asset prices and on-chain event data.
But these are not the only blockchains on the market. Currently, there are hundreds of projects such as Ripple, EOS, Stellar, Cosmos, Algorand, and CELO, among many others. Each of these blockchains has its own specific characteristics and objectives, making them unique in the market.