Ethereum also holds over 280k active ERC-20 tokens and is still the go-to platform for smart contracts and decentralized applications.
Polkadot is similar to Ethereum, but instead of one chain, it aggregates multiple chains of relays to allow for the transfer of assets and data between the various chains.
Cosmos and Avalanche differentiate themselves due to their modular architecture and maximal and minimal consensus options.
With the blockchain market evolving, a new generation of platforms is defining its further development, institutionalization, and the expansion of real-world application opportunities with cross-chain communication assets, the construction of gigantic blockchain infrastructure capable of addressing a wide range of potential use cases for smart contracts.
At the fore of this innovation are Ethereum, Polkadot, Cosmos, and Avalanche, among others. Their technologies hold significant functions of addressing some of the basic challenges within the industry alongside expanding the horizons of decentralization usage in multiple industries.
Ethereum (ETH): Expanding Smart Contract Functionality
Current price:$1,949.08
Market Cap:$235.27B
Smart contracts are one of the Ethereum features that was introduced in the blockchain technology. Smart contracts are self-executing agreements that execute, facilitate, and enforce in expressing provisions of the contract. The Ethereum platform describes the environment within which decentralized applications (dApps) operate securely and autonomously for business transactions.
ERC 20 token is one of the major aspects of Ethereum through which it is capable of advancing many other cryptos. Currently, there are 280k+ tokens within the Ethereum network utilizing the ERC-20 protocol, of which 154 of them are inside the top 100 crypto. This compatibility has established Ethereum as the largest decentralized finance (DeFi) and Non-Fungible Token (NFT) platform as well as the emerging Play2Earn space.
Ethereum was co-founded by Gavin Wood who stated that Ethereum was a global computer. It also makes it a very hard system to hack and provides protection against censorship. Further, the upgrade to Ethereum 2.0 from proof of work to proof of stake will work towards solving issues in scalability and energy consumption.
Polkadot (DOT): Interoperability through a Multi-Chain Architecture
Current price:$4.25
Market Cap:$6.7B
Polkadot is a blockchain protocol composed to help transfer of assets and information across different blockchains with ease. It is said to be a layer-0 protocol; and it supports various layer-1 blockchains known as parachains. These are multiple blockchains that are built specifically designed and are interconnected through the Polkadot Relay Chain.
Such an architecture enables flexibility in connecting blockchains of different forms and uses while maintaining functionality and autonomy. The project also relies on on-chain governance for updates, allowing for development without necessitating forks in the blockchain. It uses DOT as a native cryptocurrency, while its users participate in governance, staking, and bonding to support new parachains.
Polkadot’s protocol is used for interaction with public and private chains, other networks and oracles. This has an outcome of fostering Web3 – a decentralized internet where the power of data and assets belongs to its users.
Cosmos (ATOM): Establishing a Decentralized Network of the Blockchains
Current price:$4.36
Market Cap:$1.7B
Cosmos has been able to address the issues of scalability and communication through its Inter-Blockchain Communication (IBC). This enables various blockchains to share data and assets in the form of tokens, without relying on centralised exchanges.
Cosmos distinguishes itself from others due to its modular concept to ease the creation of dApps. The Cosmos network of blockchains what is called the Cosmos Hub utilizes the proof-of-stake model with accelerated growth while consuming little power.
Often invoked as the ‘Internet of Blockchains’, the Cosmos project was created in 2014 with the release of Tendermint, and expanded upon with a white paper in 2016; Cosmos is credited for providing developers tools for simplifying the process of development. ATOM tokens are also used to secure the network and for decision-making processes, on which more will be said in the next sections.
Avalanche (AVAX): Enhancing Speed and Customization
Current price:$20.98
Market Cap:$8.76B
Avalanche is the blockchain that has mainly targeted smart contract execution hence being fast and highly scalable. It has three core blockchains, X-Chain for asset management and tokenization, C-Chain for smart contract execution, and the P-Chain for protocol consensus.
Since Bitcoin and Ethereum have a layer that is made where each and every node works for the validation of every single transaction while on the other hand Avalanche uses specialized chains that works on different acceptance types. Because of this model, the network has been able to execute up to 6,500 transactions per second with low latency and possibility of scalability to infinity.
after going live in mainnet in 2020, Avalanche proceeded to adopt and incubate Ethereum solutions and outlets ongoing. The future development of bridges integrates Ethereum better with other platforms, making it an advantage for decentralized finance.
