Blockchain Networks That Will Rule The Future

Blockchain networks are growing in popularity, so which network is suitable and promising for your business?

Many individuals are currently focusing on quicker and more energy-efficient blockchain solutions after Bitcoin’s debut. There are new blockchains that are improving Bitcoin’s speed and energy usage, and Web 3.0 will further accelerate this progress. The market for blockchains is predicted to increase from USD 3.0 billion to USD 39.7 billion from 2020 to 2025, and an increasing number of businesses are beginning to experiment with the technology. In this article, we’ll go through the many kinds of blockchain networks, and a list of top blockchain networks for you to consider.

Blockchain Technology Explained: A Secure Web of Transactions

Imagine a record book, not owned by a single person or institution, but by everyone using it. This record book is constantly being updated and verified by a vast network of computers, making it nearly impossible to tamper with. This is the essence of blockchain technology: a decentralized, secure way to track and record information.

At its core, blockchain is a distributed ledger – a database shared across a network of computers. Each piece of information, or transaction, is grouped into a “block” that contains details like time, participants, and a unique identifier. These blocks are then chained together chronologically, forming a tamper-proof record. This chain of blocks is what we call the blockchain.

Here’s what makes blockchain so powerful:

• Decentralization: There’s no single authority controlling the information. This eliminates the risk of manipulation and fraud.
• Immutability: Once a block is added to the chain, it’s virtually impossible to change it. This creates an undeniable record of all transactions.
• Security: Cryptography secures each block, making it extremely difficult to hack into the system.
• Transparency: Anyone can view the blockchain, fostering trust and accountability.

Key Market Takeaways For Blockchain Technology

The global market for blockchain technology has experienced significant growth and is poised for further expansion in the coming years. According to industry estimates, the market reached a value of USD 17.57 billion in 2023. This value is projected to surge to USD 27.84 billion in 2024 and reach a staggering USD 825.93 billion by 2032, reflecting a compound annual growth rate (CAGR) of 52.8% during the forecast period (2024-2032).

This market analysis encompasses various technology platforms, solutions, and services offered by leading companies. Examples include distributed ledger blockchain technology solutions, ecosystem services advisory, consulting services, platform services, and application services. It also incorporates offerings like Microsoft’s Azure service and Azure digital ledger workbench.

Key Features Of Blockchain Technology

Blockchain relies on a decentralized network of users to validate and record transactions instead of a central authority. This characteristic makes blockchain transactions constant, fast, secure, inexpensive, and tamper-proof.

What Are The Types Of Blockchain Networks?

Blockchain is an online ledger used for decentralized peer-to-peer transactions. Blockchain technology delivers increased user confidence, lower risk, cheaper production costs, permanent, tamper-proof records, and speedier transaction times. There are four types of blockchain networks that are defined by their degree of decentralization and the identification of persons responsible for maintaining the network.

1. Public Blockchain

Public blockchains are open to anybody who wants to use them. It is a permission-less and non-restrictive distributed ledger system. Anyone with a computer and a safe internet connection can join and become an authorized node. No one has exclusive control over it and it is mostly used for mining and exchanging cryptocurrencies. A record of all blockchain transactions is stored on every node in the network. Public blockchains are trustworthy and untraceable, but they are time-consuming to process and must be recognized by authoritative bodies. It is only at risk when the participants don’t follow the security protocols. Public blockchain networks include Ethereum, Litecoin, and Bitcoin.

Some Features Of Public Blockchain Are : 

•  High Security 
• Open Environment 
• Anonymous Nature 
• No Regulations 
• Full Transparency 
• True Decentralization 
• Full User Empowerment 
• Immutable  
• Distributed 

2. Private Blockchain

A new type of blockchain, private blockchains, has emerged due to the widespread use of blockchain technology. The benefits of private blockchains include enhanced speed, better scalability, greater anonymity, and even network performance, all attained by limiting participation to a predetermined set of nodes. It is a restrictive blockchain that operates only in a closed network. The level of authorizations, accessibility, permissions, and security is mismanaged by the controlling organization. 

However, they are more prone to security breaches, have a more centralized structure, and are more vulnerable to disruptions because of the fewer nodes in the network. Private blockchain networks are deployed for supply chain management, voting, asset ownership, digital identity, etc. Private blockchain networks include Hyperledger, Multichain, and Corda.

Some Features Of Private Blockchain Are : 

• Full Privacy
• Centralized 
• High Efficiency 
• Faster Transactions
• Better Scalability

3. Hybrid Blockchain

The hybrid blockchain combines the advantages of both private and public blockchains, as the name indicates. It can have a public permission-less system and a private permission-based system. The number of nodes that may access the network and perform the verification process is smaller than in public blockchains, and these nodes are specifically designated for that purpose. These blockchain networks may pick and choose which users are allowed to take part and whose transactions are made public.

Hybrid blockchain allows only a selected section of records to become public while maintaining the confidentiality of the remaining data in the private network. Users may simply combine a private blockchain with various public blockchains because of the adaptability of the hybrid blockchain architecture. When a hybrid blockchain is used, a transaction is often validated only within the private network. However, users also have the option of putting it on the public blockchain, where it can be confirmed by anybody. Public blockchains need more nodes for verification, which increases hashing. Because of this, the blockchain network is much more secure and transparent.

Although it has improved, it needs help with openness, efficiency, and low participation rates. Some blockchains combine different technologies, such as the Ripple network and its XRP cryptocurrency. Dragonchain is the ideal example of a hybrid blockchain.

4. Consortium Blockchain

Consortium blockchains, also known as federated blockchains, are novel blockchain implementations that adhere to the hybrid blockchain principle by keeping specific data private while making other data accessible to the public.

In a consortium blockchain, many entities work together to oversee a blockchain network, making it a semi-decentralized system. It’s the opposite of what we witnessed with private blockchains, which are controlled by a single entity. To participate in the blockchain’s data exchange or cryptocurrency mining, more than one entity can play the role of a node. 

Here, blockchain transactions are verified by a small network of nodes and are managed by a number of different entities. Decentralization occurs when many entities serve as authority; this setup also provides anonymity and adaptability. The topics of exposure, divergent interest perspectives, and openness are also addressed. Financial institutions, government agencies, etc., frequently utilize consortium blockchains. Blockchains like Tendermint and Multichain frequently use this technique.

How to Choose the Best Blockchain Platform?

• If it is a public or private blockchain network and how it affects performance and security. It largely determines privacy and cost.
• Consensus mechanisms, such as Byzantine fault tolerance, PoW, or PoS. PoW is relatively older than the other mechanisms that are faster, newer, and more efficient. 
• The ledger technology and how it records transactions. A common method of working here is with a UTXO and account model. The account model keeps track of the balance, while the UTXO model is like carrying around cash with serial numbers. The account model is used in Ethereum, Stellar, Tron, and EOSIO while UTXO is used by Hyperledger Fabric, Hyperledger Sawtooth, and IBM Blockchain.
• Smart contract functionalities intended for encapsulating business logic on the blockchain. In point of fact, the value of the platform is derived from the automation and programmability provided by the smart contract feature.
• The requirements of development tools. The amount and variety of support that a platform offers to developers is typically used as a criterion for determining whether or not it is suitable for use in the development of business applications.
• Maturity checks on the platform as maturity platforms have stronger vendor support, developer communities, and stronger interoperability.
• If it is centralized or decentralized as it affects redundancy, data integrity, security, price, and performance.
• The cost associated since ostensibly free products usually cost more than the commercial ones to use and deploy.

Top Blockchain Networks To Look For In 2024   

Here is a list of the top 10 blockchain networks to consider in 2024 to keep you abreast of the upcoming blockchains that are likely to govern the technical world.

1. Ethereum

Introduced in 2013, Ethereum is still a widely-used blockchain network in 2022 due to its status as the first public blockchain to employ smart contracts for transactions. Ether (ETH), the cryptocurrency used by Ethereum, has the second-highest market capitalization.

Many additional token standards, such as Basic Attention Token (BAT) and USD Coin, are built on Ethereum’s underlying blockchain (USDC). Also, in 2022, Ethereum activated its proof-of-stake mechanism, which is superior to the proof-of-work architecture in terms of safety, energy efficiency, and the ability to accommodate novel scaling solutions.

2. Solana

In the last several months, the Solana network, based on the Solana SOL coin, has become one of the prominent participants in the cryptocurrency market. It marked its position among the top 10 cryptocurrencies worldwide. The market valuation for Solana is roughly $12.04 billion, with 346 million circulating SOL.

Like Ethereum in many ways, Solana is an open-source, decentralized cryptocurrency network with the goal of being more efficient. Solana’s blockchain employs a proof-of-history consensus technique to accurately record the dates and timestamps of SOL currency and other digital asset transactions, including those involving NFTs. 

This blockchain infrastructure relies on three pillars: 

• scalability, where it leverages historical data to scale at the rate of Moore’s Law, 
• cheap costs to accommodate applications with billions of users, and 
• interoperability.

3. KLAYTN

Another recent public blockchain network, Klaytn, launched in June 2019, emphasizing commercial use. Its modular network design facilitates the development of blockchains focused on certain commercial services. These service chains are the sub-networks based on the Klaytn architecture.

Real-world applications like gaming, domain name administration, music management, and property management are a cinch for Klaytn to handle. As a result, the entry barriers for end consumers are lowered, and the cost of building blockchain applications is decreased. It provides another blockchain to keep an eye on with its –

• One-second block production and confirmation duration, 
• 4000 transactions per second capacity, and 
• One-tenth pricing of Ethereum.

4. Cosmos

Cosmos (using the cryptocurrency known as ATOM) seeks to facilitate interaction amongst all blockchains by addressing the issues of sovereignty, scalability, and sustainability plaguing blockchain technology. To guarantee that blockchains may interact safely, it employs the Tendermint consensus method and the Inter-Blockchain Communication (IBC) protocol. Or, to put it another way, Cosmos is a network of blockchains.

One of the reasons for its success is that even smaller development teams can work effectively with Cosmos. Cosmos has a market worth of about $4.09B with 292 million issued ATOM in circulation, according to Coinbase.

5. Tezos

Even though it has been under development since 2014, Tezos is still a valuable network in 2022. Smart contracts, NFTs other innovative financial instruments, and decentralized applications are all supported by this public, open-source blockchain network.

Smart contracts on the Tezos network now have better performance and an immense size limit, thanks to recent changes to the underlying architecture. Tezos’s newest features make it easier than ever to incorporate NFTs into corporate supply chains through automation. Its Delegated Proof of Stake (XDPoS) consensus process, self-amendment protocol, and on-chain governance differentiate it from the other blockchain networks. It ensures the security and logical correctness of coding for digital assets and is employed in decentralized applications. Tezos has been put to good use in the gambling industry and online markets.

6. Stellar

Stellar is a distributed ledger system that debuted to the public in 2014. You may create, transmit, and exchange digital dollars, pesos, bitcoins, and a wide variety of other currencies on this network dedicated to financial transactions.

For banks and other financial organizations concerned with the safety and openness of their transactions and services, Stellar is quickly proving to be the ideal option. In 2024, Stellar will be another blockchain network to keep an eye on due to its potential to facilitate the rapid creation of fintech apps, digital assets, and tokens.

Stellar offers a fixed yearly inflation rate of 1%, a confirmation time of under 3-5 seconds, support for smart contracts and multiple signatures, and the capacity to process millions of daily transactions. Peer-to-peer token trading, asset issuance, and currency conversion are all simplified by this system.

7. ELROND

Elrond is an exceptionally new blockchain that only appeared in July 2020 and has garnered tremendous traction since. This public blockchain was developed with dApp scalability, security, and decentralization in mind. It also serves the needs of businesses by providing them with solutions at lower costs and with more throughput.

Transacting in Elrond is lightning fast because it employs sharding. In particular, it has been presented as a technology with broad applications in Web 3.0 for fintech, IoT, and decentralized financial systems. Its network reportedly processes 15,000 transactions per second, with a transaction fee of $0.001 and a latency of about six seconds.

Since its release, Aerotek Aviation, Black Hat Network, and decentralized exchanges like Maiar DEX have all been built on Elrond. Elrond has seen significant popularity and adoption growth in the short years since its launch, and this trend is only expected to continue.

8. XDC network

XDC network is a hybrid blockchain that is utilized primarily in the financial sector and international trade. It instantaneously regulates trade transactions by digitization and tokenization. Along with that, it leverages cross-chain smart contracts for transactions.

XDC launched in June of 2019 after an initial coin offering (ICO) in 2018 raised a total of $15 million. It promises to use the world’s fastest and most energy-efficient consensus protocol and employs Delegated Proof of Stake (XDPoS) and Stakeholder Approval Voting to handle consensus difficulties impartially. XDC has established itself as a one-of-a-kind digital asset by fueling the XDC Blockchain Network and the most well-known wallets of today, including Garuda, BitFi, Ellipal, Lumi, and Trezor.

9. EOS

Launched in June 2018, the EOS public blockchain network is designed to facilitate the development of decentralized applications (dApps) that are both scalable and safe. EOS uses multithreading and Delegated Proof of Stake (XDPoS) techniques to eliminate user fees.

EOS is a smart contract platform that also offers a means of governing and hosting dApps. Since it provides decentralized storage for business solutions, it addresses the scalability problems of Bitcoin and Ethereum. Additionally, it is one of the new blockchains to think about today as it supports multi-processing, upgrades, authorization schema, and adaptability.

10. Hyperledger Sawtooth

Hyperledger Sawtooth is a new private blockchain that uses a flexible and modular design to isolate its application area from the rest of the system. In January 2018, it was introduced, making it possible for smart contracts to function in accordance with business principles without requiring users to have knowledge of the underlying system architecture.

This blockchain network intends to be a neutral network that permits pluggable consensus mechanisms, such as Proof of Elapsed Time (PoET). Hyperledger Sawtooth’s parallel transaction execution capacity and interoperability with Ethereum contracts are two more selling points for businesses in the market for intelligent, scalable solutions.

11. Hyperledger Fabric

As a consortium blockchain, Hyperledger Fabric provides a plug-and-play modular architecture for rapidly developing solutions and apps. Because it allows the formation of a network of networks, it is precious for industrial use cases.

Fabric network participants collaborate yet protect their privacy by keeping their external networks separate. While a vendor may deal with several customers for a single product, they need not share the same network with each of them because of Hyperledger Fabric’s channel system. Because of this, private transactions and secret contracts are possible on the blockchain, which is now safe and scalable rather than open and permissionless.

Hyperledger Fabric’s rapid adoption may be attributed to the fact that it is incredibly flexible and can be easily adapted to meet the needs of different projects. It was first released in 2015, but today the food industry, online payment systems, online identification, and the tracking of valuable products are all finding more and more uses for it.

Industries That Benefit From Blockchain Networks

The financial sector, the supply chain, the real estate market, and even the gaming industry have all found applications for blockchain technology. Smart contracts allow businesses and people to conduct normal transactions without incurring the cost and uncertainty of interacting with third parties. This code is saved and accessible on an immutable blockchain.

Bitcoin, Bitcoin Cash (BCH), Litecoin (LTC), and many more cryptocurrencies designed specifically for making payments demonstrate that blockchain technology is ideally suited for this purpose. In many respects, blockchain-based payment systems are superior to their more conventional counterparts, both in terms of efficiency and ease of access.

Healthcare, the Internet of Things (IoT), and digital identification are just a few examples of sectors that rely heavily on efficient and secure systems of data ownership and management. These sectors also benefit from innovative solutions made possible by blockchain network protocols. Blockchains ensure users’ anonymity and the integrity of data transmission by employing public-key cryptography (PKC), a system that provides users with both a public key for receiving transactions and a private key for submitting them.

Which Is The Best Blockchain Network?

Before starting a single and firm answer, consider the table below:

Above are the different tables; we would like you to apply your understanding to choose which blockchain would best fit your needs. If you are a member of any blockchain network, all you need to do is understand how a blockchain works in order to make wise decisions in the future.

WrapUp!

It’s important to pick the correct blockchain network and platform. It fully relies on the project’s type and specifications. While selecting one, you must be aware of the advantages and disadvantages of each blockchain network. Therefore, selecting the blockchain that is best for your organization is essential for success. 

Businesses like Idea Usher are your best bet for finding professionals who can provide you with a complete understanding of the blockchain network and app development. Here, you can find experienced blockchain experts who can sort the possibilities for your business. The team can also help you build your application from the ground up on an appropriate blockchain platform.

Get in touch with us now!

Contact Idea Usher at [email protected]

Or reach out at: (+1)732 962 4560, (+91)859 140 7140

FAQ

Q. What are the top 10 Blockchains?

A: The top 10 blockchain networks are:

• Ethereum (ETH)
• Solana (SOL)
• Binance Smart Chain (BNB)
• Tron (TRON)
• Polygon (MATIC)
• Avalanche (AVAX)
• NEO
• EOS

Q. How do I create a blockchain network?

A: You can create a blockchain network with these steps:

1. Finding the right use case.
2. Choosing the consensus mechanism.
3. Choosing the platform 
4. Create the design of the node.
5. Create the blockchain instance layout.
6. Utilize an application programming interface (API) 
7. Create the user interface and the backend administration
8. Finalizing the blockchain

Q. What is a blockchain network fee?

A: When exchanging cryptocurrencies, customers have to pay a fee known as the blockchain fee. There is a cost for completing the transaction on the network, and the user has to pay the cost. To guarantee speedy Bitcoin transactions, it is mandatory to pay blockchain fees.

Q. How many blockchain networks are there?

A: There are only four main types of blockchain networks, namely private blockchains, public blockchains, hybrid blockchains, and consortium blockchains.