💭There is no single blockchain for all cryptocurrencies. Each major cryptocurrency usually has its own blockchain, designed specifically for its needs or purpose.
Let me explain further. 🤓
🤔 What does a blockchain need to function?
✅ Technological Infrastructure (Nodes and Network)
🖇️ Nodes: Distributed computers that maintain a copy of the blockchain and verify transactions.
🖇️ Decentralized Network: Nodes communicate with each other to ensure the network is synchronized and secure.
✅ Native Cryptocurrency
The blockchain needs a currency to incentivize participants (miners or validators) and to pay usage fees.
🤓 Example: Bitcoin uses BTC, Ethereum uses ETH, etc.
✅ Consensus Mechanism
It is the way nodes agree to add new transactions to the blockchain.
🤓 Examples:
👉🏼 Proof of Work (PoW): Miners solve complex mathematical problems (Bitcoin).
👉🏼 Proof of Stake (PoS): Validators lock cryptocurrencies as collateral to validate transactions (Ethereum 2.0, Solana).
👉🏼 Gas (or Fees): "Gas" is the cost that users pay to perform any action on the network.
🤔 Why is it needed?
🆗 To avoid spam on the network.
🆗 To reward nodes that process transactions.
✅ Smart Contracts (optional)
These contracts are automatic rules that are executed without the need for intermediaries.
Some blockchains (like Ethereum or Solana) have the ability to run programs called smart contracts.
Examples: 👉🏼 A smart contract might say "If I receive 1 ETH, send an NFT to this address."
