do all cryptocurrencies use blockchain
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Humera Momin
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Do all cryptocurrencies use blockchain
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Do all cryptocurrencies use blockchain
Understanding Altcoins Altcoins belong to the blockchains they were explicitly designed for. Many are forks—a splitting of a blockchain that is not compatible with the original chain—from Bitcoin and Ethereum.
Because of this distribution—and the encrypted proof that work was done—the blockchain data, such as transaction history, becomes irreversible. Such a record could be a list of transactions, but private blockchains can also hold a variety of other information like legal contracts, state identifications, or a company’s inventory. Most blockchains wouldn’t “store” these items directly; they would likely be sent through a hashing algorithm and represented on the blockchain by a token.
Bitcoin is a perfect case study of the inefficiencies of blockchain. Bitcoin’s PoW system takes about 10 minutes to add a new block to the blockchain. At that rate, it’s estimated that the blockchain network can only manage about seven transactions per second (TPS). Although other cryptocurrencies, such as Ethereum, perform better than Bitcoin, the complex structure of blockchain still limits them. Legacy brand Visa, for context, can process 65,000 TPS.
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Without such processes, how could trusted payments take place? Enter blockchain, which has the potential to disrupt that process completely. And not just for payments, but other forms of transaction including the flow of goods and information around the world.
