The blockchain networks that underpin the currencies, tokens and projects that investors care about are often overlooked. That's ok for me. Although it is crucial to have some familiarity with blockchain technology before investing in cryptocurrencies and tokens, this is no longer the case. Platforms like briansclub have made it easy to buy and sell cryptocurrencies.

However, blockchains are intriguing in their similarities and differences and as the foundation of every major cryptocurrency today. 

Background Information

Let's make sure we're on the same page before we begin. There are numerous use cases where discussing the blockchain outside the accompanying coin is pointless. Bitcoin's underlying technology is the blockchain. Just for that purpose. What blockchain Bitcoin uses is a basic and apparent question with a straightforward solution.

Similarly, Ether is based on the Ethereum blockchain. The blockchain networks for Litecoin, Chia, Ripple, EOS, TRON, Monero, Solana, Stellar, NEO, and Dogecoin are all separate from one another.

Still, things aren't what they seem. Some digital currencies use preexisting blockchain infrastructure. Many popular platforms are built on the Ethereum blockchain. Some examples are Maker, Uniswap, Chainlink, Axie Infinity, Aave, Compound, SushiSwap, Status, Kyber Network, Basic Attention Token, and Decentraland.

In most cases, it's okay to distinguish between these two categories. All cryptocurrencies use blockchain encryption techniques to guarantee the data's integrity and the transactions' verifiability. There are a variety of consensus algorithms across blockchains, but they all share a common validation procedure for new block additions. However, blockchain-based digital currencies are distinct from those that use preexisting networks.

The coins of a blockchain whose native currency is a cryptocurrency are the units of that cryptocurrency's denomination. Bitcoin, Litecoin, Dogecoin, and NEO are all digital currencies.

Tokens are used when the cryptocurrency is housed on an existing blockchain. Tokens exist for MakerDAO, Chainlink, and BAT since they are hosted on Ethereum rather than their blockchains.

Recognizing the Leading Blockchain Networks

Since Bitcoin's value represents approximately 40% of the whole cryptocurrency market, it's safe to conclude that Bitcoin's blockchain is the most widely used. It's the one you know for sure has the greatest potential payoff.

The Ethereum blockchain, however, is also the most widely used. How extensive is Ethereum's decentralized ledger? How you choose to quantify it matters. Ethereum's total number of transactions topped Bitcoin's for the first time in 2021. We can confidently call Ethereum the most widely used blockchain network since it is the backbone for many different cryptocurrencies and most NFTs.

Other popular networks were created as workarounds for deficiencies in earlier blockchain implementations.

Solana, for instance, is a blockchain designed to underpin distributed applications and digital currency. Like Ethereum, the Solana protocol allows for the creation of "smart contracts" that may be implemented. Because of its innovative Proof of History consensus method, Solana can handle thousands of transactions per second. That's a major factor to consider while building a global infrastructure.

Bitcoin allows for roughly 7 tps, whereas Ethereum allows for about 15 tps. The transaction costs on this cutting-edge blockchain network are far lower than those on Ethereum. It's easy to see why it's become so popular so quickly.

Although Dogecoin was founded as a joke in 2013, it has matured into a legitimate cryptocurrency. Part of this shift might be attributed to Dogecoin's blockchain processing transactions around 10 times quicker than Bitcoin's.

The Chia blockchain network uses the "Nakamoto" consensus process. According to Chia, a mere 0.16 percent of Bitcoin's yearly energy usage and 36 percent of Ethereum's, is used by the Proof of Space and Time method.

Ripple developed the XRP Ledger blockchain to underpin RippleNet, an international network that facilitates instantaneous global money transactions using digital and fiat currencies.

Confidentiality was a primary design goal while developing the Monero blockchain. While it's true that all blockchains encrypt sensitive data, the Monero protocol has additional safeguards in place to ensure that no trace of the transaction can be traced back to a specific user.

Different Blockchains for Different Needs

In only a few moments, it becomes clear that each blockchain network is designed to do something different. In decentralized finance, especially, some are made to aid in a specific endeavour or project or even just a single app. Others are designed to replace current blockchains that have technological constraints. 

Blockchain-based applications like briansclub and resources may be developed on Ethereum because of its programmability, which lets it function like an operating system. Moreover, the Bitcoin network possesses all the qualities required for its coin to function as a general-purpose alternative for government-issued money.