From foundational layer-1 networks like Bitcoin and Ethereum to layer-2 solutions enhancing scalability and reducing gas fees, this article covers the best blockchain protocols to know in 2024. Discover how smart contracts and consensus algorithms are creating more secure and efficient ways to transact. Plus, browse the native coins and tokens powering these crypto protocols into the bull run and beyond.
Methodology
BeInCrypto’s product team tested and used a variety of crypto platforms over a period of six months, in order order to narrow down a number of recommendations. Here’s why we have highlighted each as good options to purchase the native cryptos of leading blockchain protocols.
Coinbase stands out for its user-friendly interface and security measures, making it ideal for both beginners and experienced traders.
Wirex offers the unique feature of a crypto debit card, allowing for the easy conversion of crypto to fiat currencies for everyday use.
YouHodler is recognized for its high-interest crypto savings accounts and the option to use crypto as collateral for loans, providing flexibility in managing crypto assets.
Overall, BeInCrypto selected Coinbase, Wirex, and YouHodler as the optimal platforms for purchasing native cryptocurrencies from prominent blockchain protocols through a comprehensive methodology focusing on several key factors. Firstly, each platform was assessed for its reputation and reliability within the cryptocurrency ecosystem, ensuring a secure and trustworthy environment for users.
Secondly, the availability and variety of native cryptocurrencies offered on these platforms were thoroughly evaluated to ensure a diverse selection that covers leading blockchain protocols, providing users with ample options for investment and diversification.
Additionally, BeInCrypto considered the user experience and interface of each platform, prioritizing intuitive design and ease of use to facilitate seamless transactions for both novice and experienced users.
Moreover, factors such as transaction fees, deposit and withdrawal options, as well as customer support services were scrutinized to ensure cost-effectiveness and responsive assistance, enhancing the overall user experience.
By meticulously analyzing these criteria, BeInCrypto determined that Coinbase, Wirex, and YouHodler emerged as the top choices for individuals seeking to acquire native cryptocurrencies from leading blockchain protocols, offering a blend of reliability, accessibility, and functionality essential for optimal investment strategies in the digital asset space.
To learn more about BeInCrypto’s methodology, click here.
Top 9 crypto protocols in 2024
1. Bitcoin
Widely recognized as the leader in the crypto space, Bitcoin is more than just a digital currency — it’s a decentralized system for secure, peer-to-peer financial exchanges. Bitcoin operates independently of centralized financial authorities, giving the network a level of security that challenges traditional financial systems. The blockchain relies on a community-driven, computational process known as proof-of-work to verify transactions and maintain its integrity.
With a decentralized approach and a secure environment, this crypto protocol is offering an alternative to the traditional financial system. It ensures that payments are irreversible and guards against the risk of double spending, all without the need for trusted third parties like banks. This revolutionary approach has positioned Bitcoin at the forefront of the crypto movement.
Users looking to invest in Bitcoin can do so either by purchasing BTC directly or gaining exposure to the asset via now-approved spot Bitcoin ETFs.
2. Ethereum
The Ethereum blockchain is widely recognized for its innovation. The community-driven, open-source platform has operated on a proof-of-stake (PoS) consensus mechanism since September 2022. This has significantly reduced its energy consumption by over 99% compared to the older proof-of-work model.
Within Ethereum, decentralized autonomous organizations (DAOs) can create smart contracts. The aim of DAOs is to create profitable ventures or contribute value to the Ethereum community while ensuring that all members have a say in decision-making. These organizations operate based on their own set of rules, including methods for making decisions, economic strategies, and systems for distributing rewards.
Thanks to smart contracts, the network supports NFTs as well as countless applications, with notable examples being MetaMask, a digital wallet, and Brave Browser, which is emerging as a strong competitor to Google Chrome. Users looking to invest in the Ethereum network can purchase the native crypto, Ether.
3. Cardano
Cardano is a blockchain platform built to run secure and eco-friendly decentralized apps and smart contracts. It operates on a proof-of-stake system called Ouroboros, where users help maintain the network by staking their tokens.
A standout feature of Cardano is its commitment to sustainability. The chain aims for low energy use and minimal environmental impact. Moreover, its flexible structure means it can adapt and evolve, ensuring it remains relevant and effective for future decentralized applications. Users looking to invest in Cardano can buy its native coin, ADA.
4. Polkadot
Polkadot is a diverse and multi-faceted blockchain protocol that acts as a base for a network of interconnected blockchains.
Conceptualized in 2016 and launched in 2020, Polkadot enables different blockchains, whether private or public, to communicate and transfer data and assets through its central Relay Chain and various parachains. These parachains can tailor their features for specific purposes and issue their own tokens while enjoying the advantages of Polkadot’s overarching security and interoperability.
The platform’s native currency, DOT, plays a crucial role in managing and operating this interconnected ecosystem. Polkadot stands out for its scalability, flexibility, ease of developing decentralized applications, and collective security, positioning it as a leading technology in the blockchain space. Users looking to invest in Polkadot can purchase the native DOT crypto.
5. Solana
Solana is an open-source blockchain that facilitates scalable decentralized projects.
Since its inception in 2020, Solana has introduced a number of advancements, including it’s proof-of-history consensus mechanism, Tower BFT, Turbine, and Gulf Stream, enabling it to process up to 65,000 transactions per second and achieve block times of just 400 milliseconds.
The network’s native crypto, SOL, is essential for its operational functions and staking processes. Emphasizing scalability and fast transaction sequencing, Solana is one of the leading and most promising new-generation layer-1 blockchain protocols. In early 2024, the network is playing host to a meme coin frenzy, with Solana meme coins defining the early bull run.
6. Chainlink
Chainlink is a blockchain-based decentralized oracle network designed to facilitate the secure interaction of smart contracts with external data sources, real-world events, and payment systems.
Since its launch in 2019, Chainlink has bridged the gap between on-chain smart contracts and necessary off-chain information, enabling these contracts to be executed based on real-world data and events. It relies on a worldwide network of decentralized node operators, who use the native LINK crypto to ensure the reliability of the external data fed into blockchains.
Through the cryptographic verification of data and processes, Chainlink ensures that the information connecting blockchains to external systems is secure and trustworthy. Its critical role in linking blockchain with external data has made it an essential piece of infrastructure for various sectors, including decentralized finance (DeFi), insurance, gaming, and more. Users looking for exposure to Chainlink can invest in the native LINK.
7. Polygon
Polygon, initially known as Matic Network, is a versatile platform that aims to evolve the architecture of interconnected blockchain networks. It specifically looks to overcome certain challenges faced by Ethereum, such as limited transaction capacity, subpar user experience due to slow and costly transactions, and inadequate community governance.
A standout feature of Polygon is its implementation of layer-2 sidechains — these are auxiliary blockchains operating parallel to the main Ethereum chain. This approach significantly enhances scalability, enabling faster and more affordable transactions. Moreover, Polygon employs a modified proof-of-stake (PoS) consensus mechanism, which contributes to its rapid transaction processing and reduced costs.
The importance of Polygon lies in its ability to improve the scalability and user-friendliness of Ethereum, making it a more practical option for both developers and users. It has become home to many DApps seeking efficient, cost-effective solutions. Users looking to invest in Polygon can look to the native MATIC.
8. Ripple
The Ripple blockchain is specifically tailored for digital payment systems, with a core focus on facilitating swift and cost-effective international transactions.
Unlike traditional blockchain systems that rely on proof-of-work (PoW) or proof-of-stake (PoS), Ripple operates on a distinct consensus protocol. This unique mechanism is celebrated for its rapid transaction speeds and minimal fees, and notably, it eliminates the need for mining, significantly reducing energy consumption.
Ripple’s significance lies in its strategic emphasis on integrating with banks and financial institutions. Its primary objective is to enhance efficiency and reduce the complexities associated with cross-border payments, positioning Ripple as a pivotal player in the modernization of global financial infrastructure. Users looking to invest in Ripple can buy XRP.
9. BNB Smart Chain (BSC)
The BNB Smart Chain (BSC) is a dynamic blockchain network crafted to support applications based on smart contracts. One key attribute is its ability to run concurrently with the BNB Chain, which offers users a dual advantage: the ability to handle a large volume of transactions and the sophisticated functionality of smart contracts. The network employs a unique consensus model known as proof-of-stake-authority (PoSA), enhancing its efficiency and security.
BSC has quickly become a preferred choice in the blockchain community, known for its minimal transaction fees and superior performance. These features make it an attractive environment for developing decentralized applications (DApps) and various digital assets.
Crypto protocols compared
| Blockchain | Consensus Mechanism | Coin | TPS | Type of Layer |
|---|---|---|---|---|
| Bitcoin | Proof-of-work (PoW) | BTC | 7 | Layer-1 |
| Ethereum | Proof-of-stake (PoS) | ETH | ~30 | Layer-1 |
| Cardano | Ouroboros (PoS variant) | ADA | ~250 | Layer-1 |
| Polkadot | Nominated proof-of-stake (NPoS) | DOT | 1000+ | Layer-0 |
| Solana | Proof-of-history (PoH) | SOL | ~65,000 | Layer-1 |
| Chainlink | Decentralized oracle network | LINK | Depends on Ethereum | Layer-2 |
| Polygon | Proof of-stake (PoS) | MATIC | ~7,000 | Layer-2 |
| Ripple | Proof-of-stake (PoS) | XRP | ~1,500 | Layer-1 |
| BNB Smart Chain | Proof of Staked Authority (PoSA) | BNB | ~100 | Layer-1 |
What are blockchain protocols?
Blockchain protocols are the backbone of cryptocurrencies and ensure that all transactions are secure, transparent, and immutable — meaning they can’t be altered or deleted.
When we talk about crypto protocols, we’re referring to the specific systems that different cryptocurrencies, like Bitcoin or Ethereum, use to ensure their networks run smoothly and securely. Each crypto has its own unique protocol.
Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller directly written into the lines of code. Smart contracts are a key feature of many blockchain protocols, enabling more complex transactions and applications.
The easiest way to understand the importance and magnitude of a specific crypto protocol is to consider the dominance of its native crypto. For instance, for the Bitcoin blockchain, the crypto we’re looking at is of the same name, often abbreviated as its ticker, BTC.
As of March 29, 2024, Bitcoin, the first-ever blockchain and crypto, maintains its dominance. According to CoinMarketCap, Bitcoin’s dominance sits at 51.53%. This is the most traded crypto, followed by Ether (ETH) at 16.38% dominance.
Blockchain layers explained
In the blockchain ecosystem, different layers can help to solve different problems. Layer-1 refers to the main blockchain architecture (like the Bitcoin network or Ethereum).
These blockchains can become congested as use rises, leading to issues like slow transaction times and high gas fees — the cost to complete a transaction or execute a contract on the Ethereum network.
Layer-2 solutions address these issues, working on top of the layer-1 blockchain to improve scalability — the ability of the network to handle a larger number of transactions quickly and cheaply. Layer-2 solutions process transactions separately and then record them on the main blockchain, reducing the load and, hence, the gas fees.
Layer-0 chains combine technologies and protocols that underpin the blockchain ecosystem. The layer includes networking protocols, physical hardware, and other elements.
Interested in L2s? Check our guide to the top layer-2 projects in 2024.
Consensus mechanisms
Transactions are verified on a blockchain through a consensus algorithm. The most common types are proof-of-work (PoW) and proof-of-stake (PoS).
Proof-of-work, used by the Bitcoin network, involves crypto mining. During the crypto mining process, miners solve complex mathematical problems to validate transactions. Note that this process uses a lot of energy. On the other hand, proof-of-stake (PoS) is a more energy-efficient method. Here, validators are selected based on the amount of cryptocurrency they hold and are willing to stake or lock up as a form of security.
The relationship between blockchains and cryptocurrency
Cryptocurrency primarily serves as the digital coin or token that operates within blockchain networks. In blockchain systems like the Bitcoin network, cryptos are essential for compensating the participants who maintain the network, known as miners. These miners use their computational power to validate transactions and add new blocks to the blockchain. In return for their efforts, they are rewarded with cryptocurrency.
Similarly, in blockchains that use a proof-of-stake (PoS) consensus mechanism, participants, often referred to as stakers, lock up a certain amount of their cryptocurrency as a stake in the network. They are then selected to validate transactions and create new blocks based on the amount of crypto they hold and are willing to stake. This method not only secures the network and processes transactions but also rewards those who participate in maintaining the integrity of the blockchain.
Crypto protocols: Not made equally
Blockchain protocols are the rulebooks for how data is handled on blockchain networks. Each one is different, and various algorithms and methods are used to keep data secure, transparent, and up-to-date. These protocols do share commonalities, though, with many utilizing a native crypto: a coin or token that powers the ecosystem.
Users looking to invest in the native cryptos of top blockchain protocols should remember that decentralized assets can be volatile. Always choose a safe and secure platform to conduct transactions and a reputable crypto wallet to store your assets. Never invest more than you can afford to lose.
Frequently asked questions
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