The blockchain is one of the hottest topics in technology today. From cryptocurrencies to IoT, the blockchain is almost everywhere you look. While the true potential of this technology remains to be unlocked, many industries are starting to explore its use cases and possibilities.
In this article, we will be exploring the differences between several of the most prominent blockchain projects out there. We will also be looking at their similarities so that you can make more informed decisions about which one might be a good fit for your business.
Without further ado, let’s take a look at some of the key differences between these promising blockchain projects.
What is a blockchain?
A blockchain is a distributed public ledger that is used to record transactions across many decentralized computers. In essence, it is a database that is maintained by a network of computers.
Transactions recorded in a block can be verified and validated by the network, and new blocks can be added to the blockchain once they’ve been verified.
Together, all of these transactions make up a “ledger” that is distributed among the network.
Ethereum was the first blockchain project that really captured the public’s imagination.
Developed by Ethereum Foundation, this blockchain project aims to be a decentralized software platform that runs smart contracts - decentralized applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party intrusion.
The Ethereum blockchain network runs applications on its blockchain, and as such, it does not maintain a single coin or token. Instead, Ethereum has “ether” as its cryptocurrency.
Bitcoin is the first widely-used cryptocurrency and blockchain project.
Developed by Satoshi Nakamoto (believed to be a pseudonym), Bitcoin was the first decentralized cryptocurrency that was created using blockchain technology.
There are many differences between Bitcoin and other contemporary blockchain projects, but they mostly fall into two categories: stability and technology.
Stability-wise, Bitcoin was designed to be more like a traditional currency, while other blockchain projects were designed to be more like stocks.
Stocks are considered to be “digital bearer securities,” while currencies are “fiat-bearer securities.”
This simple distinction is what led to the success of Bitcoin as a currency - it is stable and does not fluctuate as much as other cryptocurrencies.
Bitcoin Cash is one of the most popular alt-coins currently.
Bitcoin Cash is similar to Bitcoin in that it is a decentralized cryptocurrency that uses blockchain technology.
Like Bitcoin, Bitcoin Cash is also mined using a consensus algorithm that is designed to make mining decentralized and less prone to fraud.
While Bitcoin Cash does not have the widespread adoption of Bitcoin, it is still widely traded and has many benefits that make it a worthy contender in the blockchain project race.
EOS is a blockchain project that has attracted a lot of attention due to its rapid growth.
EOS aims to be the “Ethereum of Software,” enabling developers to easily build decentralized applications.
Like Ethereum and other blockchain projects, EOS uses its blockchain network to store data and conduct transactions. However, it is unique in that it also uses its own cryptocurrency, “EOS tokens,” to reward users for hosting content on the EOS blockchain.
NEO is often referred to as the “Chinese Ethereum,” and it is arguably one of the most ambitious blockchain projects currently.
NEO was created in 2014 by the founders of Ethereum, who claim that it “brings thousands of new developers into the blockchain ecosystem.”
At its core, NEO’s blockchain network uses the same technology as Ethereum - a blockchain network that uses its own cryptocurrency, “NEO,” to conduct transactions.
Like Ethereum, NEO’s blockchain is designed to be used by developers to build applications that run on the blockchain.
Cardano is a third-generation blockchain project that has generated a lot of attention in recent months.
Cardano is built on the principle of “sustainability,” which is defined as “the ability to maintain growth while maintaining a certain level of quality of life.”
Cardano aims to achieve this by creating a system that is “balanced, safe and reliable.”
Cardano has a lot in common with Ethereum - both are third-generation blockchain projects that use a technology called “dApps,” or decentralized applications.
Like Ethereum and NEO, Cardano is developed by a team of blockchain developers and researchers.
Stellar Lumens is a blockchain project that aims to bridge the gap between cryptocurrencies and financial services.
Stellar Lumens was created with the goal of making cross-border payments as easy as sending an email.
In order to achieve this, Stellar Lumens has developed a blockchain network that is specifically designed for facilitating international payments.
Similar to the way that the Visa and MasterCard networks facilitate international payments, the Stellar network facilitates payments across borders by running an exchange in between currencies.
Solana is a blockchain platform that aims to become the “Swiss Army Knife” of blockchain.
The Solana platform is designed to let businesses use a variety of different blockchain technologies, including those from Ethereum and Bitcoin, to build applications that run on the Solana blockchain.
By providing a single blockchain that supports multiple blockchain technologies, Solana aims to make it easier for businesses to adopt blockchain technology.
The blockchain is one of the most exciting new technologies to come along in a long time, and it has the potential to impact a wide range of industries.
In this article, we have provided a high-level overview of 8 of the most prominent blockchain projects out there.
While there are many others, these 8 project seem to be the most promising at this point, and they each have unique features that set them apart from each other.
As we move towards an era of increased blockchain adoption, these projects will need to work hard to differentiate themselves from the competition and capture a larger share of the blockchain project pie.