What Block Chains will use New Digital Currencies
Intro
It seems that every financial site you go to these days are all talking about the new proposed digital currencies about to emerge. Every country around the globe seems to have a plan to go digital. One very important question for investors is What Block Chains will use new proposed digital currencies. Let’s explore the most important Block Chains that just might explode in price.
Top Block Chains for new Digital Bank Currencies
There is no definitive answer to what blockchains will digital currencies use, as different digital currencies may use different blockchains or other technologies to secure and transfer their transactions. However, some of the most common and popular blockchains that are currently used by digital currencies are:
- Bitcoin blockchain: This is the original and most widely used blockchain, which powers the Bitcoin cryptocurrency and its forks, such as Bitcoin Cash and Bitcoin SV. The Bitcoin blockchain uses a proof-of-work (PoW) consensus mechanism, which requires miners to solve complex mathematical problems to validate transactions and create new blocks. The Bitcoin blockchain is decentralized, meaning that no single entity or authority controls it, and it is immutable, meaning that once a transaction is recorded, it cannot be reversed or altered.
- Ethereum blockchain: This is the second-largest and most versatile blockchain, which powers the Ether cryptocurrency and thousands of other tokens, applications, and smart contracts. The Ethereum blockchain uses a PoW consensus mechanism, but it is planning to transition to a proof-of-stake (PoS) consensus mechanism, which requires validators to stake their tokens to secure the network and earn rewards. The Ethereum blockchain is also decentralized and immutable, and it supports the creation of decentralized applications (DApps) and decentralized finance (DeFi) platforms.
- Binance Smart Chain (BSC): This is a blockchain that runs in parallel with the Binance Chain, which powers the Binance Coin (BNB) cryptocurrency and the Binance exchange. The BSC is compatible with the Ethereum blockchain, and it supports the creation of DApps, DeFi platforms, and smart contracts. The BSC uses a PoS consensus mechanism, which makes it faster and cheaper than the Ethereum blockchain. The BSC is not fully decentralized, as it is controlled by 21 validators selected by the Binance exchange.
What Block Chains will use New Digital Currencies
- Cardano blockchain: This is a blockchain that aims to provide a more scalable, secure, and sustainable platform for DApps, DeFi platforms, and smart contracts. The Cardano blockchain powers the Ada cryptocurrency, and it uses a PoS consensus mechanism, which is claimed to be more energy-efficient and democratic than the PoW consensus mechanism. The Cardano blockchain is also decentralized and immutable, and it is designed to support interoperability and governance1.
- Solana blockchain: This is a blockchain that claims to be the fastest and most scalable blockchain in the world, capable of processing over 50,000 transactions per second. The Solana blockchain powers the Solana (SOL) cryptocurrency, and it uses a novel consensus mechanism called proof-of-history (PoH), which uses a cryptographic clock to timestamp transactions and order them in a single sequence. The Solana blockchain is also decentralized and immutable, and it supports the creation of DApps, DeFi platforms, and smart contracts.
Opinion
These are some of the most prominent blockchains that are currently used by digital currencies, but there are many others that have different features and advantages. Some digital currencies may not even use blockchains, but other technologies, such as directed acyclic graphs (DAGs), which are networks of nodes that do not form loops or cycles. For example, IOTA is a digital currency that uses a DAG called the Tangle, which does not require miners or validators, and allows for feeless and instant transactions.
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