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ToggleBlockchain technology was created with a clear purpose: to establish a system that allows direct transactions between individuals without relying on centralized intermediaries, such as banks. Since its inception with Bitcoin in 2009, this technology has transformed global finance, becoming the core of the cryptocurrency industry.
However, not all blockchains are the same. Choosing the right blockchain network can optimize your transactions and save you time, costs, and a lot of headaches if you make the wrong choice. In this content, we will explore what makes the most important blockchains unique, how they work, and which ones you can use on Bitnovo to maximize your crypto experience.
Although the underlying technology of Blockchain is quite complicated to explain and generalize, to understand the basic concept, imagine a digital ledger that is not controlled by any individual or central authority (like the government, a bank, or a CEO). That is a blockchain: a decentralized database that records transactions securely, transparently, and immutably.
Each record or “block” of information is linked to the previous one using cryptography, creating a “chain” of blocks that cannot be altered without the consensus of the majority (50.1%) of all users.
This decentralized consensus system ensures that no central entity can manipulate the data, making blockchain one of the safest technologies in the world for storing information. This can include everything from the amount of money in an account (as in the case of cryptos) to presidential voting data, medical records, and many other use cases, showing that it’s not just about Bitcoin (BTC) and cryptocurrencies.
However, not all blockchains are the same; each network has unique features defined by its consensus mechanism, speed, cost, and scalability.
Now, a key point mentioned in the previous Blockchain concept is “consensus,” which is essentially how the blockchain network and its validators (miners, in the case of the Bitcoin (BTC) network) decide whether or not a transaction is added to the Blockchain.
These consensus mechanisms can be as varied and complex as human minds and mathematics imagine. However, the two most common are Proof of Work (PoW) and Proof of Stake (PoS).
PoW, used by Bitcoin (BTC), requires miners to solve complex mathematical problems to validate transactions. Although it is extremely secure, it is also costly and consumes a lot of energy, making it slower compared to other methods. Thus, BTC transactions are slow and expensive compared to other cryptocurrencies or altcoins.
On the other hand, PoS, adopted by networks such as Ethereum after transitioning to Ethereum 2.0, selects validators based on the amount of cryptocurrency they hold and “stake” on the network. This method is more energy-efficient and faster but can lead to some level of centralization if a few control large amounts of tokens.
In the crypto universe, each blockchain has features that make it ideal for specific uses. Let’s see how the significant networks compare:
On Bitnovo, we give you access to the major blockchain networks to perform your transactions efficiently and, most importantly, tailored to your specific needs:
Each network has specific advantages depending on your needs. For example, if you’re transferring USDT, you can choose between TRC-20 to minimize costs or ERC-20 if you prefer maximum compatibility with the crypto world.
Selecting the right network is not just a matter of preference but also of ensuring the success of your transaction. Each token is tied to a specific network, and using the wrong one can result in the permanent loss of your funds. We always recommend that you double-check and double-check again and make sure that the address shared with you is on the same network you intend to send to.
Moreover, transaction costs and speeds vary considerably between networks. For example, sending 100 USDT via the TRON network could cost you less than a penny, while the same transaction on Bitcoin could cost you over 10€.
🎯 Start today! Download our app and choose the network that best suits your needs. Make every transaction an optimal and secure experience. Download here.