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Understanding crypto networks

Crypto Networks

Crypto networks, often referred to as blockchain networks are the systems that facilitate the transfer and management of crypto and other digital assets.

Before blockchains, people had to trust banks for safe transactions. With blockchain, everything has changed. When someone sends or receives crypto, all the computers in the network team up to make sure the transaction is real. This is called a 'decentralised system' it means there is no central authority and control is distributed among different entities. Once it is approved, it's added to the chain, visible to everyone. This transparency and security create a system that is difficult for anyone to manipulate.

There are different kinds of blockchain networks, each suited to different use cases. For instance, Bitcoin and Ethereum are public blockchains, which are open-source and allow anyone to use or build on their technology while eliminating the need for a trusted third party to facilitate transactions. Alternatively, there are private blockchains, which limit who can participate in the network.

Let’s zoom in on public blockchain networks and some examples:

Bitcoin: The first and most most well known cryptocurrency network. It was created as a peer to peer electronic digital payments protocol. Bitcoin was designed to be the first practical blockchain and prove the possibility of digital money.
Ethereum: Ethereum has built upon the initial concept of a decentralised payment system and created a global computer network. This network connects users to a marketplace of decentralised applications (dApps), providing enhanced efficiency, security, and user control.
Binance Smart Chain (BSC): Created by Binance, it aims to be a high-performance blockchain compatible with the Ethereum Virtual Machine (EVM) and supports smart contracts. The key benefit of BSC is its rapid transaction processing, capable of handling up to 100 transactions per second.
Base: Base is an Ethereum Layer 2 chain (operates on top of an underlying blockchain protocol) and it offers a safe, low-cost, developer-friendly way to build onchain.

You can access Base, BSC, Etheruem and more networks on Onboard Wallet.

Updated on: 09/02/2024

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