5 Crypto Networks You Need To Know About
There are many different cryptocurrency networks out there. Some have unique functions and utilities that set them apart, such as Polkadot serving as the internet.
There are many different cryptocurrency networks out there. Some have unique functions and utilities that set them apart, such as Polkadot serving as the internet of blockchains, or Ethereum function as a platform for smart contracts, decentralised apps, NFTs, and more.
Among the new blockchain projects, there are some cryptocurrency networks that have been built from the ground up with a specific use case, and even a utility coin built within their ecosystem.
In this article, we’ll be exploring some of them in detail and learning how they work.
What are crypto networks?
When it comes to cryptocurrency this refers to the web of blockchain networks that make cryptocurrencies secure and interoperable according to their respective ecosystems.
Think of these blockchain networks like your phone or cell service. There are many different providers out there, all of which enable communication and transfer of information despite being different networks.
As prefaced above, some crypto networks offer specific use cases and utility for their users, ranging from NFTs, decentralised finance (DeFi), payment gateways, and more.
It’s also worth noting that different crypto networks will have different wallet addresses and have different compatibilities depending on the network’s interoperability.
Read more: A guide to crypto blockchain networks.
Kadena is a cryptocurrency that is used for payments for those who use the Kadena public blockchain. Miners are rewarded with KDA for mining blocks on the blockchain, much like ETH on Ethereum.
The network utilizes proof-of-work (PoW) for validating transactions and compensation for miners. In this sense, Kadena attempts to follow in the footsteps of Bitcoin albeit more refined.
What sets Kadena apart from other PoW blockchain networks is that they’ve managed to refine the process to where they can scale it much better than other PoW networks.
Kadena can complete 480,000 transactions per second, which makes It more efficient than others.
The team behind Kadena is committed to improving its ecosystem and making sure that its users have an easy time using the platform.
One of the latest updates includes integration with Ledger’s hardware wallet for improved protection from potential hacks and data compromises.
NEAR Protocol (NEAR)
The NEAR Protocol is a smart contract-capable, public proof-of-stake blockchain that was conceptualised as a community-run platform designed to host decentralised applications (dApps).
As of this writing the NEAR Protocol claims a processing capacity of 100,000 transactions per second, and can offer transaction fees that are up to 10,000x lower than Ethereum.
NEAR tokens can be used for transaction fee payments and storage costs. Token holders can also stake NEAR by participating in achieving network consensus as transaction validators.
There are multiple projects building on NEAR. Mintbase is a platform for creating and managing non-fungible tokens, or NFTs.
Flux is a decentralised market protocol that allows developers to create exchanges around any asset. They also have their own wallet – Near wallet that can be used for transacting.
NERVOS Network (CKB)
The Nervos project has its own blockchain protocol that is based on Bitcoin’s proof-of-work system, but claims to have improved efficiency compared to more legacy blockchains. It also has a “Common Knowledge Base” protocol that lets its DApps run on other networks as well.
The Nervos token is called CKByte. It has a ticker symbol of CKB, that can be used to pay fees in three different ways:
- First, cycle fee is paid to miners based on the number of computer resources used to verify a transaction.
- Second, the transaction fee.
- Third, a state rents to minors for providing storage space.
CKB enables users to access data, with the upper layers of the platform influencing infinite configurations of users. In addition to empowerment, CKB also provides security and flexibility for data access.
Layer 1 of CKB prioritises decentralisation and security, Layer 2 focuses on a high performance application layer with scalability as a generation layer.
Oasis Network (ROSE)
ROSE is a native’s token in the Oasis Network, a layer-1 proof-of-stake (PoS) smart contract platform that aims to be privacy-preserving and scalable.
This token is used for staking and delegating on the Oasis Consensus Layer, as well as for smart contracts that need to use fees in ParaTimes.
Up to 2.3 billion tokens will be automatically distributed as staking rewards to stakers and delegators over time.
Fun fact: ROSE is a limited-supply token. The circulating amount at launch will be approximately 1.5 billion tokens, with a total supply cap of 10 billion tokens.
XPR is the native token of Proton’s ecosystem. A public blockchain network and smart contract platform built around a secure financial settlement layer that allows users to directly link real identity and fiat accounts, pull funds, buy crypto, and use that crypto seamlessly in apps.
The Proton token (XPR) is used for governance, network development, and staking in the Proton platform. Proton token (XPR) stakers can select block producers.
Because Proton uses the EOS dPoS governance model, it allows users to select block producers. As a DPoS system, Proton can process 4,000 transactions per second and does not charge gas fees.
Understanding the different crypto networks out there is essential to get a better sense of their potential value in the future. It’s also an indicator of much more to come in the crypto space.
As blockchain technology continues to advance, there will be even more avenues and applications that these different crypto networks will be able to integrate into.
It’s often said that blockchain technology will take part in the next evolution of a safer, more secure and decentralised future of the internet.
It’s still too early to predict the value growth for any individual cryptocurrency network, but it’s interesting to imagine how these technologies might influence the world around us in the long run.
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated October 20, 2022