What you need to know in 2023 about blockchain protocols

What is Blockchain?

Blockchain is a distributed and decentralized digital ledger technology that enables secure and transparent peer-to-peer transactions without the need for a central authority or intermediary.It consists of a continuously growing chain of blocks, where each block contains a list of transactions that have been verified and validated by a network of computers (nodes) in the network.

Once a block is added to the chain, it cannot be altered or deleted, providing a high level of security and immutability.

Blockchain technology is commonly associated with cryptocurrencies such as Bitcoin, but it has many other potential applications in various industries, such as supply chain management, voting systems, digital identity management, and more.

If you are interested in updating your skills in Blockchain, our Blockchain Certification Training can help you to enhance your career.

As of my knowledge cutoff in 2021, here are 10 blockchain protocols that were prominent and widely used. However, it’s important to note that the landscape of blockchain protocols is constantly evolving, and this list may change in the future.

10 Blockchain Protocols to Know :

1. Bitcoin: 

The first and most well-known blockchain protocol, Bitcoin is a decentralized digital currency that allows for secure and anonymous transactions. Bitcoin is a form of digital currency that was first released in 2009. It has become the most widely used and recognized cryptocurrency, with millions of people worldwide using it for trading and transactions. Bitcoin works by utilizing a Peer-to-Peer (P2P) network to facilitate payments and transfers between users. Transactions are verified through an advanced cryptography system, making them secure and reliable. Furthermore, Bitcoin does not require any third party intermediaries such as banks or governments, meaning that transaction fees are kept low while still providing privacy and security to users. 

2.Ethereum: 

Ethereum uses its own programming language, Solidity, and its own cryptocurrency, Ether (ETH). Since its launch in 2015, Ethereum has grown to become one of the most popular blockchains in the world with over 200 million users worldwide. In addition to providing smart contracts and Dapps for individuals and organizations, it also supports other blockchain technologies such as Decentralized Autonomous Organizations (DAOs) and Stablecoins. Moreover, the Ethereum platform allows for the development of a variety of applications including digital identity management systems, peer-to-peer financial services, gaming platforms, prediction markets, supply chain tracking systems and more.

3.Ripple: 

A blockchain protocol designed for fast and secure cross-border payments, Ripple aims to replace traditional payment systems such as SWIFT. Ripple is making waves in the world of finance. This innovative technology is an open-source, decentralized payments and remittance network that enables businesses, individuals, and financial institutions to securely transfer funds in real-time across borders. Ripple uses a special payment protocol called the Ripple Transaction Protocol (RTXP) to facilitate transactions. The goal of RTXP is to enable faster and more secure transfers than traditional banking networks can provide.

4.EOS: 

A blockchain protocol designed for building scalable dApps, EOS is known for its high transaction throughput and low latency. In addition to providing its users with an easy-to-use platform for creating decentralized apps, EOS also provides a number of features and tools for developers, such as account management, authentication, database storage and inter-blockchain communication. These features make it easier for developers to quickly create powerful applications that can be used in a variety of industries. Furthermore, EOS’ scalability makes it attractive for enterprise level businesses who wish to transition their operations onto the blockchain. This scalability allows these businesses to handle large amounts of data reliably while keeping transaction costs low.

5.Hyperledger Fabric: 

An enterprise-grade permissioned blockchain protocol designed for building private and permissioned blockchain networks. Hyperledger Fabric provides the necessary tools to create efficient, cost-effective solutions for many industries including banking, finance, insurance, healthcare and government. Its modular design makes it easier for developers to customize their applications according to their specific requirements. With features such as smart contracts and chaincode functionality, businesses can create secure transactions quickly and securely without the need for third-party involvement or manual processing.

6.Corda: 

A distributed ledger platform designed for financial institutions, Corda uses smart contracts to automate complex financial processes. Corda’s key feature is its privacy model which enables only those involved in the transaction to view and access related information. This ensures that sensitive business data remains secure while allowing transactions to take place quickly and efficiently without requiring intrusive permissioning processes. Additionally, Corda allows businesses to customize their level of security by providing tools for consensus management and digital signature verification for added protection against fraud.

7.Stellar: 

A blockchain protocols designed for fast and low-cost cross-border payments, Stellar aims to provide financial services to the unbanked and underbanked. The Stellar blockchain network is powered by a distributed ledger system which operates on a peer-to-peer basis. This enables transactions to be processed almost instantly and without requiring third parties such as banks or other financial institutions. The system also allows users to issue their own custom tokens, which can represent anything from loyalty points to digital assets such as stocks and bonds.

8.IOTA: 

A blockchain protocols designed for the Internet of Things (IoT), IOTA uses a directed acyclic graph (DAG) called the Tangle to enable secure and feeless microtransactions between IoT devices. The IOTA platform uses its own native cryptocurrency, known as MIOTA, which can be used to pay for services within the network or exchanged with other digital currencies on exchanges. The network utilises a unique type of Directed Acyclic Graph (DAG) based distributed ledger architecture called ‘Tangle’ which enables it to scale quickly without compromising security or performance. IOTA also incorporates additional features such as zero fees, quantum-proof security and fast transaction times compared to other blockchain technologies.

9.TRON: 

A blockchain protocol designed for decentralized content sharing and entertainment, TRON aims to disrupt the traditional entertainment industry by connecting content creators directly with consumers. TRON is a classic science fiction movie that was released in 1982 and has gone on to influence numerous films, video games and other works of media. Directed by Steven Lisberger, TRON follows the story of computer programmer Kevin Flynn (Jeff Bridges) who is digitized into a computer world known as The Grid. While there he must battle against the Master Control Program, an evil piece of programming looking to take control over all computers connected to The Grid.

10.Algorand: 

A blockchain protocols designed for building scalable and decentralized applications, Algorand uses a consensus algorithm called Pure Proof-of-Stake (PPoS) to achieve fast and secure transactions with minimal energy consumption. Algorand is a decentralized, permissionless public blockchain protocol that uses a unique consensus mechanism to ensure secure transactions and scalability. It was created by Silvio Micali, an MIT professor and Turing Award winner, with the goal of providing a platform for secure digital payments. The Algorand protocol allows for fast transactions with low fees and supports smart contracts on its platform.

Conclusion :

In conclusion,blockchain technology has the potential to provide solutions to many of today’s problems. The protocols listed in this article are just a few of the most promising ones that will likely remain relevant in 2023 and beyond. Businesses should look into adopting these protocols to benefit from their features and capabilities, such as distributed consensus, improved scalability, and enhanced data security. Understanding how blockchain technology works and what protocols exist is important for staying ahead of the competition and taking advantage of new opportunities for growth.