Top Blockchain Protocols Everyone Should Know

It has become challenging for us to tell whether things are real or not in today’s world. It can be a primary bank transaction or a vote in an election; the only way to validate these actions is by keeping a record. Society today validates these records through centralized authorities; this can be either a bank, government authority or an individual with the power to confirm the information.

This puts a lot of power in these centralized authorities’ hands and leaves room for loopholes that can be exploited at the consumer’s expense. As a result, in 2009, Satoshi Nakamoto invented Bitcoin, which became the first form of money that removes a central authority’s need.

Bitcoin became the first of many forms of cryptocurrency to be introduced into the market. Satoshi’s invention found a way to build a digital decentralized cash system, a currency outside government regulations. A decentralized network works as a peer to peer network for file sharing; it is recognized through a payment network with accounts, balances, and transactions known as a blockchain.

What is a Blockchain

A blockchain acts as a distributed ledger that is entirely open to the public. The data stored depends on the type of blockchain, and this differs between the different types of cryptocurrency. Its security comes from its creative use of hashing and distribution. Second, there is the hash that identifies as a block and all of its contents. Similar to a fingerprint, it is useful for detecting changes in the block.

The data stored depends on the type of blockchain; for example, Bitcoin uses both the sender and a receiver and keeps a record of the amount of money in the network.

Several elements contribute to creating a blockchain; this includes peer-to-peer network relations and their ability to create a space for the network to communicate and share remotely.

The next would be cryptography, which allows for reliable communication in a secure environment. After cryptography, the consensus algorithm is the set of rules that decides on the criteria for adding a new block. Bitcoin, for example, uses the Proof of Work algorithm.

These algorithms are also known as blockchain protocols; they are different systems carried out to reach a consensus and verify transactions within a blockchain network. Some blockchain protocols require either physical mining equipment such as nodes, and others use coins purely alone while others incorporate both methods.

Blockchain Protocols

Proof of Work

The first would be Proof of Work, as mentioned above; this protocol uses physical mining rigs with many graphics cards to power up the many machines. The more powerful a rig, the higher the chances of winning the next block and receiving the coins as a reward. This is one of the more expensive protocols as there is a lot of initial cost in equipment and electricity.

Proof of Stake

Proof of Stake is another protocol that does not require the same physical rigs as the POW. This protocol allows coin holders to add to a network by staking their coins in their digital wallets, activating staking, and leaving the computer while the owner receives staking rewards. POS is seen as a deterministic way that depends on its wealth or stake and not blocks reward.

Delegated Proof of Stake

Delegated Proof of Stake is a different protocol that delegates nodes through votes to represent others and add new blocks to the chain. In this method, the participants have control over who can certify the ledger. 

Proof of Weight

Proof of Weight is a protocol unlike POS determined by the relative number of coins in a wallet; Proof of Weight incorporates the number of coins and the number of files they hold in the network. This method gives a further incentive to keep coins as well as contribute meaningfully to the system. The miners must work out complex cryptographic mathematical puzzles to be rewarded with a determined amount of bitcoin.

Proof of Capacity

Proof of capacity is the last method among the several varieties of the blockchain protocol. POC requires a node to pay for space. The larger the space on the hard disk, the better the chances of mining the next block and earning rewards. At first, the algorithm generates many data sets on the hard drives known as plots; the more plots you have, the better the chances of finding the next block.


These protocols are only but a few of the many different types that are available to use. All protocols are created to achieve effective decentralization and are determined by the platform’s kind of application.

This indicates the need for an incentive that would motivate individuals to contribute to the networks and not just the wealthy few. Due to the high price of the coins buying all the coins in an unreliable economy, it is recommended to control a new blockchain in terms of hashing.

The one protocol that kept being used is proof of stake, especially from a technical view, as it is more challenging to operate and protect against attacks. POS makes it hard for hostile actors to attack the network. This method is mainly contributing nodes in the system and to gain rewards.

Bitcoin live price
price change

These are some of the leading blockchain protocols that should be understood for a basic grasp on the ideologies behind blockchains to elevate the concept of cryptocurrency.

Stay up to date with our latest articles

More posts

Malicious Attacks on Smart Contracts that Auditors Can Easily Identify

With many businesses adopting blockchain technology and Smart Contracts, offering reliable security audits in the industry has become increasingly important.  Businesses may protect their assets and contracts by recognizing and preventing harmful assaults. This blog post will explore the different attacks a group of criminals can carry on Smart Contracts. We'll also look at real-world instances of assaults to help you secure your contracts. What are Smart Contracts? Understanding the Benefits of This Technology What are smart contracts? They are…

How Smart Contract Audit Can Help Prevent Hacks

As companies move toward implementing smart contracts, the need for technical audits becomes increasingly essential. Having a third-party auditor check your contracts for vulnerabilities can prevent your company from suffering from a hacking attack.  What are Smart Contracts? A smart contract is a script that automatically carries out a contract's provisions. Smart contracts are self-executing, meaning that once the system verifies the meeting of pre-determined conditions, the contract will automatically execute. This eliminates the need for intermediaries such as lawyers…

Understanding the GameFi Phenomenon

The GameFi industry is changing the way people think about gaming and finance. It provides a new way for gamers to interact with each other and earn money. It is also giving people a new way to invest their money.  The GameFi industry has the potential to change the way these industries operate. This guide will look more closely into this new business, covering several features. What Is the GameFi Sector? The GameFi sector is a crypto-based industry that uses…

How to Spot a Pump and Dump Scheme in the Crypto World

Cryptocurrencies have taken the world by storm, with their values skyrocketing over the past years. This has led to a huge rush of investors ignoring how to recognize a pump and dump operation. As a result, many people have lost money by investing in fraudulent schemes. This guide will teach you how to identify a pump and dump scheme and protect yourself from becoming a victim. We will also provide tips for spotting legitimate cryptocurrency investments and advise you on…

Understanding the Difference Between Solo Staking and Pool Staking

Solo staking and pool staking are two of the most popular methods of mining cryptocurrency. But what are they, and which is suitable for you?  This post compares solo and pool staking so you can choose the optimal strategy. What is Solo Staking? Solo staking is when users stake their coins by themselves to receive block rewards. By having a staking wallet online, you may receive incentives.  The main advantage of solo staking is that users get to keep all…

What is Web 5? Jack Dorsey’s Alternative to Web 3

On June 10th, Jack Dorsey announced a new project being built by Block’s bitcoin-focused business unit, TBD. That project is known as “Web 5” – a so-called “extra decentralized web” that “puts you in control of your data and identity.” What could the Block Head have in mind with this new creation? Also, what happened to Web 3? A Decentralized Data Storage Solution When Jack Dorsey announced Web 5 over Twitter, he said it would be Block’s “most important contribution…

Ethereum Name Service (ENS) – A Simple Guide

People can choose domain names that are easy to remember for their wallet addresses, thanks to the Ethereum Name Service (ENS). The secret to this technology is using a computer to understand this domain. When it comes to Web3 communication, ENS has the potential to make all the difference. In this guide, we'll go through some possible reasons for this. Ethereum Name Service (ENS) – A Definition To find out what a specific Ethereum address is, people can use the…

What is Tornado Cash, and How Does It Work?

Decentralized and non-custodial, Tornado Cash is an Ethereum-based solution for privacy and anonymity. Severing the on-chain link between those who send and receive coins enhances transaction anonymity.  This guide will provide our readers with more insight into Tornado Cash. We will start with a general introduction and move deeper into how Tornado Cash works. We will also add a list of pros and cons to this system for the reader's benefit. Understanding Tornado Cash Decentralized protocols such as Tornado Cash…

What Is the Blockchain Scalability Trilemma?

In the context of decentralization, security, and scalability, the Blockchain Trilemma refers to the generally held notion that decentralized networks can only deliver two of the three benefits at any given moment. In this article, we more closely into the matter, assessing all the most relevant aspects of the blockchain scalability trilemma. The Trilemma Vitalik Buterin invented the term "blockchain trilemma," which refers to a conundrum that blockchain engineers face while balancing three competing demands at once: decentralization, security, and…

Do Smart Contracts Represent Legal Contracts?

When industry players use the term "smart contracts," they may mean different things. Words matter, as any contract lawyer will be able to explain. Is the word “contract” a technical overstatement, or does it trigger actual legal bindings? The industry needs to agree on the consistency of its terminology. What exactly is a smart contract? Does it have any legal implications? When attorneys and technologists use this terminology, do they understand each other? Our article will provide a short analysis,…