According to Simplilearn, blockchain is a technology that combines 3 systems in order to develop an optimal structure that takes advantage of both their pros and cons. Simply put, it is information about assets and transactions stored in the ledger. While this structure is flexible, security and scalability remain issues. Today, 3 blockchain platforms are involved: 1st, 2nd and 3rd levels.
In this article we will focus on blockchains, which belong to the 1st layer. Recall that the first level deals with the execution of transactions. As an example, the well-known bitcoin, which we will start with.
It saw the world in 2009. The main advantage is the excellent security, thanks to which bitcoin is practically unhackable. Bitcoin is a native coin, which, according to the data of the first half of March 2020, is equivalent to 39 thousands US dollars. To avoid asset inflation, the number of mined units will not exceed 21,000,000 BTCs. The high speed of transactions and the absence of problems in scaling is achieved through a tool such as the Lightning Network.
As a separate blockchain platform, Ethereum was launched in mid-2015. In its structure, Ethereum is somewhat similar to Bitcoin, for example, they both use Proof of Work. The native coin is ether (ETH). Thanks to Ethereum directly on the blockchain network, it became possible to develop products. The most striking example of a project built in this way is the Polygon platform. It also led to the ability to use smart contracts. At the moment, the key task is to optimize the consensus mechanism: Proof of Stake is being seriously considered as an alternative.
Founded in 2017, Algorand is recognized as the most secure among all POS-platforms. Some time later, the ALGO token were launched along with the main network. The choice of validators is completely unpredictable and in no way depends on the set tokens. According to the experts, the advantages of Algorand are faster verification technology, the use of a competent decentralized structure and the presence of experienced employees working on the project.
Charles Hoskinson, co-founder of Ethereum, launched Cardano in 2017. The native network token is ADA. The consensus mechanism used for this blockchain focuses on managing, scaling, decentralizing, founding and using smart contracts at the same time. Cardano is a product recognized as completely environmentally friendly. High efficiency is achieved through a two-layer architecture. The ability to pay minimal commissions when trading ADA was the result of the exploitation of a special cleaning level. Some of its advantages include that it is an environmentally friendly product, its two-layer architecture provides more efficiency than other platforms. Special attention is paid to dApps of enterprises to facilitate access to Cardano tools, such as Atala SCAN.
The author of the project is Dr. Lemon Baird. Hashgraph Consensus is used as a consensus mechanism, which features striving for ABFT (Asynchronous Fault Tolerance of Byzantine type) and synchronous interaction with the POS framework. The result of this structure is to ensure that transactions are completed on time and properly, even in the face of verification delays.
The Hedera low-level blockchain platform is characterised by fast completion, excellent scalability, low transaction fees, and support for smart contracts and operations performed on them. Also in this blockchain, the developers have successfully implemented a system that proves the deletion of stored files.
In addition to the above blockchains of the first layer, I would like to add Terra Blockchain, NEAR Protocol, Polkadot, Centrality, Solana, Avalanche, CRO and Fantom. And although Layer 1 blockchains are fully developed, the blockchain structures of the second and third layers are clearly lacking. And this is becoming more and more noticeable with the increase in the number of people who are interested in blockchains. I really hope that in the near future this problem will be given due attention.