Protocols are some set of rules or guidelines for communicating data. Rules are defined for each step and process during communication between two or more computers. The communicating networks should follow these rules to successfully transmit data.
A cryptographic protocol is designed to allow secure communication under a given set of circumstances. Let us see what are the different types of protocols in crypto and Blockchain.
Protocols In Crypto And Blockchain
The way of working of a blockchain is determined by protocols. Crypto protocols allow the functioning of crypto applications only. This is the main difference between internet protocols and cryptocurrency protocols.
The internet protocols allow one to many applications to run and cryptocurrency protocols allow one to a few applications. Thus crypto protocols are known as fat protocols and internet protocols are known as thin protocols. Now let’s look at different types of crypto protocols.
Different Types of Crypto Protocols
The bitcoin protocol is the protocol on which the cryptocurrency, Bitcoin is transacted. The main features are:
- The protocol allows non-reversible transactions
- It is a public blockchain
- The technologies behind the Bitcoin protocols are private-key encryption, public-key encryption, proof of work, and peer to peer network.
- It is a decentralized network
- Decreases credit cost in minor casual transactions
- Fewer transaction fee
Ethereum is a blockchain-oriented distributed computing protocol that features smart contract functionality. The features of the ethereum blockchain protocol are:
- Ethereum is public and open-source blockchain protocol
- The ethereum virtual machine turns complete scripts by using a global network of public nodes
- It uses proof of work algorithm
- Ethereum provides a way for the user to specify how much computing power will be expanded for a transaction.
- Ethereum has its own native programming language
- Allows other apps to build on top of its blockchain
Neo is similar to Ethereum blockchains and let’s look at some of its interesting features:
- Designed for a scalable network of decentralized applications
- Similar to ethereum, Neo has its own native currency known as a non-divisible NEO token.
- It is a non-profit community-based blockchain project
- Utilizes blockchain technology and digital identity to automate the management of digital assets using smart contracts
- The annual use of Neo tokens shall not exceed 15million tokens
Ripple is a blockchain platform that was launched in 2012. It uses many of the features of Bitcoin and Ethereum. Look at some of its features:
- It is an open-source distributed consensus ledger
- Supports tokens that can be in the form of a variety of currencies
- Allows banks and other payment providers to send money globally
- The technologies behind the ripple protocol are cryptographic hash function, peer to peer network, private encryption key and public encryption key
- Enables instant, safe, and global transactions
Hyperledger was launched in 2015 by Linux foundation. The main features of Hyperledger are:
- Enables support of international business transactions, supply chain business, and technology services.
- High scalability and transaction speed
- Access to the information is role-based
- Opensource blockchain protocol
The above given are the features of different types of protocols related to crypto and blockchain. Each of them has it’s own unique features. Hope this article provided the right pieces of information for you. Please comment on your feedback and we would like to hear from you.