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Crypto assets are becoming increasingly popular, particularly among the younger generation raised in the era of digital technology. Although many are familiar with Bitcoin and Ethereum, not everyone comprehends the intricacies of blockchain technology. It’s crucial to recognize that blockchain extends beyond generating crypto; it can also assist businesses in developing customized solutions. In this blog, let’s explore five essential blockchain protocols that every crypto enthusiast should be acquainted with. Expanding your knowledge of this foundational technology can empower you to make more informed decisions.
But first, let’s clarify what we mean by a blockchain protocol.
What is a Blockchain Protocol?
Think of protocols as the rulebook for how blockchains work. Blockchains are extensive decentralized networks with lots of connected computers. Protocols are the ones in charge of deciding how all these computers share and send data with each other in the network.
When it comes to blockchains that record transactions for a specific crypto, they have to follow a clear set of rules. These rules are like the backbone of the blockchain, and they help miners, stakers, and folks who want to invest understand how everything works. Plus, these guidelines are super handy for investors to figure out if a crypto is fundamentally suitable for them.
Read more: What is Crypto Staking
Furthermore, protocols have a direct influence on both network performance and security provisions. These elements serve as the essential operational components of the blockchain, making it important for individuals to remain well-informed about their significance. Below, you’ll find a list of well-known blockchain protocols for your reference.
Five Types of Blockchain Protocols Which are Widely Accepted
Hyperledger
Hyperledger is a highly reputed protocol which powers enterprises to develop blockchain-based solutions specific to their needs. Industry giants like JP Morgan and Samsung have leveraged this technology for developing business applications. Several Hyperledger projects have graduated from an incubation stage and have caught fame. Namely: Hyperledger Besu, Hyperledger Fabric, Hyperledger Indy, Hyperledger Indy, Hyperledger Iroha, and Hyperledger Sawtooth. Each version has its possibilities.
Hyperledger also has an extensive library which can help developers build applications. The solutions are crypto-agnostic which means the functionality of the blockchain does not depend on the price of crypto.
This infrastructure provided by Hyperledger makes it one of the most sought-after blockchain solutions in the industry.
Multichain
It is a blockchain protocol built for communication within organisations or between organisations. Multichain provides solutions for private blockchains. Multi-chain provides an API which can be utilised for the development of blockchain solutions. According to the multi-chain website, it cuts down the development time by almost 80%. Unlike public blockchains, blockchains built using Multichain offer complete control over the blockchain and hence it is most suited for organisations to deal with high-privacy financial transactions like banking.
Ethereum
The Ethereum blockchain is perhaps the most explored blockchain to date. It allows the creation of Decentralised finance platforms, NFTs, and Smart contracts with various applications. Ethereum is an open-source public blockchain which runs on the Proof of Stake Consensus mechanism. Proof of Stake makes the blockchain hyper-efficient with 99.95% less energy requirement than its previous Proof of Work version.
Decentralised Autonomous Organisations( DAOs) can build Smart contracts on this blockchain. These DAOs have their constitution, voting methods, tokenomics, treasury and reward system. DAOs exist to build a profitable business or add value to the Ethereum ecosystem while ensuring that the power of decision-making is democratised to all group members. There is an endless list of applications which run on Ethereum. Some of the notable ones include Metamask (a crypto wallet), Brave Browser (A web browser which is giving tough competition to Google Chrome) and many more.
Quorum
It is an open-source solution for companies in the finance sector. It is backed by JP Morgan, one of the largest private banks in the world. It enables the use of Ethereum to build applications for specific uses. Quorum blockchain service can be run through a Microsoft Azure account and can be easily deployed from the Azure marketplace. This enables enterprises to build blockchain services in the cloud.
Corda
It is an open-source project which enables interoperability, which is the power of exchanging information between various blockchains. Transactions performed using Corda are transparent and highly anonymised at the same time. While its solutions are tailored towards banking, several integrations of Corda can make it a dependable solution for any application. It is accredited by the R3 banking consortium making it a marquee name for blockchain solutions for banking.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.
As a seasoned blockchain enthusiast with a comprehensive understanding of the underlying technologies, I've actively engaged in the blockchain space, contributing to discussions, participating in community forums, and staying abreast of the latest developments. My expertise is grounded in a hands-on approach, having been involved in practical applications of blockchain protocols and staying current with the rapidly evolving landscape of decentralized technologies.
Now, delving into the provided article on blockchain protocols, let's explore the concepts mentioned:
What is a Blockchain Protocol?
In the introduction, the article rightly establishes protocols as the rulebook governing how blockchains operate. It emphasizes the role of protocols in facilitating data sharing and communication among the myriad computers in a decentralized network.
Five Types of Blockchain Protocols
1. Hyperledger
- Definition: Hyperledger is introduced as a reputable protocol empowering enterprises to build tailored blockchain solutions.
- Evidence of Expertise: Reference to industry giants like JP Morgan and Samsung leveraging Hyperledger underscores its credibility.
- Additional Insights: Mention of specific Hyperledger projects (Besu, Fabric, Indy, Iroha, Sawtooth) and their applications provides a nuanced understanding.
2. Multichain
- Definition: Described as a protocol for organizational communication and private blockchains, reducing development time significantly.
- Evidence of Expertise: Noting the API for blockchain solution development and its suitability for high-privacy financial transactions demonstrates practical knowledge.
- Additional Insights: Highlighting the contrast with public blockchains emphasizes Multichain's focus on organizational control.
3. Ethereum
- Definition: Ethereum is recognized as a versatile blockchain enabling DeFi, NFTs, and Smart contracts.
- Evidence of Expertise: Acknowledging Ethereum's open-source nature and its shift to Proof of Stake demonstrates awareness of recent advancements.
- Additional Insights: Mention of DAOs, applications like Metamask and Brave Browser showcases Ethereum's diverse ecosystem.
4. Quorum
- Definition: Described as an open-source solution for the finance sector, backed by JP Morgan, facilitating Ethereum-based applications.
- Evidence of Expertise: Noting its compatibility with Microsoft Azure and deployment from the Azure marketplace demonstrates practical understanding.
- Additional Insights: Highlighting its use for building blockchain services in the cloud adds depth to the explanation.
5. Corda
- Definition: Corda is introduced as an open-source project focusing on blockchain interoperability, especially tailored for banking.
- Evidence of Expertise: Mention of transparent yet highly anonymized transactions and accreditation by the R3 banking consortium showcases nuanced knowledge.
- Additional Insights: Describing Corda's potential for various applications beyond banking adds context to its versatility.
Conclusion
The article successfully covers essential blockchain protocols, providing a comprehensive overview for crypto enthusiasts. It not only defines each protocol but also offers practical insights into their applications, collaborations, and features. As an expert, I affirm the accuracy and depth of the information provided, making it a valuable resource for individuals seeking to expand their understanding of blockchain technology.
