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Blockchain Platform – What You Need To Know

lnhngn 17/11/2021 12:43 378 views

In the top 10 in Coingecko’s rank, there are 5 projects are about Blockchain Platform. During the whole year of 2018, we saw the launch of a lot of projects in this group and brought a huge return on investment when it was launched.

In this article, I will summarize the knowledge about Blockchain Platform for you to learn easily.

Blockchain Platform Definition

Blockchain Platforms are private platforms, allowing developers to program on them to create other Dapps.

An example to make it easy for you to imagine: Blockchain platforms are like phone operating systems. We have IOS, Android, Windows Phones. And Dapps (decentralized applications) are Apps developed on the above operating systems. It can be games, an application to watch movies, listen to music (Youtube, Vimeo, Zing Mp3,…).

A blockchain Platform is called strong when it has many Dapps built, attracts many Developers & has many users…

Features of Blockchain Platforms

1. Tokens issued by Blockchain Platform are called coins. The coins created by DApps are called tokens.

2. Each Blockchain Platform has a Smartcontract. It is smart contracts, to enforce the requirements that the Blockchain designed.

3. Each Blockchain Platform has a different consensus mechanism. The consensus mechanism is how the blockchain decides to validate the transaction request. Some common consensus mechanisms:

Proof of Work (PoW – proof of work): Authenticators (called Miners) must use the power of high-configuration computers to decrypt. People call it Mining – mining coins. In return, the Miners are rewarded with coins when the transaction is verified.

Projects using PoW mechanism:

  • Ethereum (ETH).
  • Ethereum Classic (ETC).
  • Nervos (CKB).
  • Proof of Stake (PoS – proof of stake): Authenticating participants (called stakers) also participate using computers or some devices, but do not require too high configuration. It is called Staking – betting.

In return, the Stakers are rewarded with coins when the transaction is validated. Projects using PoS mechanism: Solana (SOL), Binance Chain (BNB), TomoChain(TOMO), Cosmos (ATOM), EOS, Tezos (XTZ), NEO, Cardano (ADA), TRON, XLM, XEM.

Make money with Blockchain Platform

There are many different Blockchain platforms, but I find the trend & hotness of these projects currently not the best. However, it is an opportunity for us to choose potential projects to invest in. Some criteria you need to pay attention to:

Judging by the technical indicators of Blockchain:

  • Blocktime (block generation time): The shorter the better.
  • Transaction Processing Speed ​​(TPS): The lower the better.
  • Transaction fees: The shorter the better.
  • Number of Nodes (with PoS) & Number of Minners (with PoW): The bigger the better

By the time I write this article, there is Solana (SOL) that meets the above criteria.

What is the ecosystem of that Blockchain like?

The bigger the Ecosystem, the stronger the Blockchain. Currently Ethereum (ETH) is the platform with the largest number of active DApps, and attracting the most users and Devs.

With new projects, we should check how is the Dapp development speed, number of users, and so on. If they are all well developed, let’s analyze how far can the project reach in the future? If it is potential, then consider to invest is the right move to go.

Interoperability with other blockchain ecosystems.

Some platform blockchains with potential ecosystems you should be interested in: Ethereum, Tomochain, Binance Chain (BNB)L – Built & under construction, Solana (SOL) – Well developed, Cosmos (ATOM).

Above is very basic information about the Blockchain platform. Each attached link is important knowledge for you to learn more deeply before making an investment decision.

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