The ChainGang

A resource I’m developing to study and review blockchains periodically. I’m going to leverage AI here and build it up gradually and deliberately.

Algorand is a blockchain platform that excels in speed, security, and scalability, using a unique Pure Proof-of-Stake (PPoS) consensus mechanism. It can handle over 2,000 transactions per second (TPS) with finality in under five seconds, all while keeping transaction costs low. The platform supports a multi-asset functionality, allowing the tokenization of various assets such as cryptocurrencies and stocks. Algorand’s ecosystem includes DeFi, NFTs, and a wide array of decentralized applications (dApps). The native token, ALGO, is essential for transaction fees and staking, with minimal requirements making it accessible to a broad range of users.

Arbitrum is a Layer 2 scaling solution for Ethereum that uses Optimistic Rollups to improve transaction throughput and reduce costs. It processes transactions off-chain and batches them to Ethereum’s mainnet, handling thousands of transactions per second with lower fees. Fully EVM-compatible, Arbitrum supports various decentralized applications (dApps) like Uniswap, Sushiswap, and Curve. The Nitro upgrade enhances interoperability and gas efficiency. Arbitrum uses Ethereum for transaction fees and features a robust fraud-proof mechanism for security. The Arbitrum bridge facilitates asset transfers between Ethereum and Arbitrum.

Base, developed by Coinbase, is a Layer 2 blockchain that enhances Ethereum’s scalability and reduces transaction costs using Optimism’s OP Stack. By processing transactions off-chain and submitting batches to Ethereum, Base achieves over 2,000 transactions per second (TPS) with fees often less than $0.01 per transaction. Base supports a wide range of decentralized applications (dApps), including DeFi protocols, NFT marketplaces, and social networks like Fully EVM-compatible, it allows easy deployment of Ethereum-based projects without significant modifications. Transactions on Base are paid in ETH as it does not have its own native token. A key advantage is its integration with Coinbase, offering seamless access to Coinbase’s user base and developer tools. However, centralization is a concern, as Coinbase operates the only sequencer node, raising issues about network control.

Ethereum is a decentralized blockchain platform known for its extensive use in smart contracts and decentralized applications (dApps). Launched in 2015, Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism in 2022, enhancing its scalability and reducing energy consumption. The native token, ETH, is used for transaction fees, staking, and as a medium of exchange within the network. Ethereum’s scalability has significantly improved with the adoption of Layer 2 solutions like Optimistic and Zero-Knowledge (ZK) rollups. These solutions handle transactions off-chain and batch them onto the main Ethereum blockchain, reducing congestion and transaction costs. Ethereum’s upcoming EIP-4844, or Proto-Danksharding, will introduce “blob” transactions, aiming to increase the network’s transaction capacity to 100,000 TPS by optimizing data storage and reducing fees for Layer 2 solutions. The Ethereum ecosystem is vast, hosting over 4,000 dApps and 53 million smart contracts, making it the largest platform for Web3 development. Key features include the Ethereum Virtual Machine (EVM), which executes smart contract code, and a robust community that supports extensive developer tools and resources.

Optimism is a Layer 2 scaling solution for Ethereum that uses optimistic rollups to improve transaction throughput and reduce costs. By processing transactions off-chain and batching them to Ethereum’s mainnet, it handles up to 2,000-4,000 transactions per second (TPS) with an average fee of $0.32. Optimism assumes transactions are valid by default and re-executes them on Ethereum only if disputed, simplifying the process but potentially increasing gas costs during disputes. The Optimism ecosystem supports numerous decentralized applications (dApps) like Uniswap, Synthetix, and Perpetual Protocol, due to its compatibility with the Ethereum Virtual Machine (EVM). The OP token serves as the network’s governance token, enabling holders to participate in decision-making and upgrades. Optimism aims to decentralize its sequencer further and introduce sharded rollups to enhance scalability and security. Its governance is managed by the Optimism Collective, comprising the Citizens’ House and the Token House, which oversee funding and protocol upgrades.

Polygon zkEVM, launched in March 2023, is a Layer 2 scaling solution for Ethereum that uses zero-knowledge proofs to improve transaction throughput and reduce costs while maintaining security and compatibility with Ethereum. It supports existing Ethereum tools, smart contracts, and wallets without code modifications, easing the migration of applications. zkEVM achieves scalability by bundling transactions into a single batch and submitting a cryptographic proof to Ethereum, allowing for faster finality and lower fees than solutions like Optimistic Rollups. Designed for DeFi, gaming, and NFTs, zkEVM handles thousands of transactions per second. The development of Polygon 2.0 aims to further enhance its ecosystem with zk-proof technology, boosting liquidity and interoperability.

Solana is a high-performance blockchain that leverages a unique Proof of History (PoH) combined with Proof of Stake (PoS) to achieve up to 65,000 transactions per second (TPS), with ambitions to scale to 710,000 TPS. Known for its low transaction costs, averaging $0.00025, and energy efficiency, Solana supports a wide array of decentralized applications (dApps) including DeFi platforms, NFTs, and gaming projects. The native token, SOL, is used for transaction fees and staking, incentivizing network security and governance. Solana’s ecosystem is robust, featuring major projects like Helium and partnerships with companies like PayPal.

zkSync Era is a Layer 2 scaling solution for Ethereum that enhances transaction throughput and reduces costs using zero-knowledge rollups (ZK-rollups). By processing transactions off-chain and submitting cryptographic proofs to Ethereum’s mainnet, it achieves significant scalability while maintaining security. zkSync Era can handle thousands of transactions per second (TPS) with lower gas fees, making it ideal for high-volume applications. Fully compatible with the Ethereum Virtual Machine (EVM), it allows seamless migration of decentralized applications (dApps) from Ethereum. The platform supports advanced wallet functionalities like social recovery and multisig capabilities. It also enables the creation of Layer 3 solutions (hyperchains) for greater scalability and interoperability. zkSync Era’s ecosystem includes DeFi protocols, NFT marketplaces, and gaming platforms.

Author: OXZO

Leave a Reply

Your email address will not be published. Required fields are marked *