This is the part 1 summary notes of some blockchain protocols – based on the top protocols ranked in CoinMarketCap.com. It is a systematic walkthrough of the popular protocols. The ranking and capital data is on 04/20/2022.
XRP has a market cap of $36.33B, ranked 6th.
XRP is the native cryptocurrency of the Ripple cryptocurrency cross-board payment system created by Ripple Labs Inc. The key value proposition of Ripple is its low cost and quick global transaction in five seconds: a cheaper and more efficient alternative to the SWIFT. It partners with some banks but got into leagal trouble and was labeled as unregistered security.
Under the umbrella term of Internet of Value, Ripple has several products:
- RippleNet: the global network supports On-Demand Liquidity (ODL). ODL removes the need for pre-funding in cross-border transactions. ODL uses XPR as a bridge to facilitate transanctions of different foreign currencies.
- XPR Ledger: open-source blockchain with the XPR coin as its native asset. However, the XPR ledger conensus protocol is a centralized one.
- RippleX: a platform that can be used for developing payment-oriented services.
Solana (SOL) has a market cap of $35.61B, ranked 7th.
The open-source Solana protocol is designed to facilitate decentralized app (DApp) creation. It aims to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain.
Solana smart contracts are called programs that are written in Rust, C, and C++.
Terra (LUNA) has a market cap of $33.52B, ranked 8th.
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) and offers fast and affordable settlements. Luna is its native token used to stabilize the price of the protocol’s stable coins and vote on governance proposals. It was developed by Terraform Labs.
By using stablecoins, the Terra crypto ecosystem offers low fees, instant settlement, and frictionless cross-border exchange to power retail transactions with a low transaction fee of 0.5% to 2%. It is based on Cosmos network.
Cardano (ADA) has a market cap of $32.02B, ranked 9th.
Cardano is an open-source proof-of-stake blockchain platform. Cardano uses a dual-layer system, which is distinct from most other blockchain platforms. Its settlement layer (CSL) allows ADA token holders to send and receive transactions almost instantly at low fees, while its computational layer (CCL) serves as the foundation of the rest of Cardano’s functionality. It aims to support 1 million TPS. Plutus and Marlowe are its smart contract programming langauges.
Cardano is one of the biggest blockchains to successfully use a proof-of-stake consensus mechanism. The project has taken pride in ensuring that all of the technology developed goes through a process of peer-reviewed research.
Avalanche (AVAX) has a market cap of $21.16B, ranked 10th.
Avalanche is blazingly fast, low cost, and eco-friendly smart contract platform. It is EVM compatible. Avalanche started off as a protocol for solving consensus in a network of unreliable machines, where failures may be crash-fault or Byzantine.
From Vanlanche doc
A key difference between Avalanche and other decentralized networks is the consensus protocol. Over time, people have come to a false understanding that blockchains have to be slow and not scalable. The Avalanche protocol employs a novel approach to consensus to achieve its strong safety guarantees, quick finality, and high-throughput without compromising decentralization.
Polkdot (DOT) has a market cap of $19.04B, rank 11th.
Polkadot is an open-source sharded multichain protocol that connects and secures a network of specialized blockchains, facilitating cross-chain transfer of any data or asset types, not just tokens, thereby allowing blockchains to be interoperable with each other. Polkadot was designed to provide a foundation for a decentralized internet of blockchains, also known as Web3. Polkadot is known as a layer-0 metaprotocol because it underlies and describes a format for a network of layer 1 blockchains known as parachains (parallel chains). Polkadot provides a foundation to support a decentralized web, controlled by its users, and to simplify the creation of new applications, institutions and services.
Polkadot’s native DOT token serves three clear purposes: staking for operations and security, facilitating network governance, and bonding tokens to connect parachains .