With more than 1500 cryptocurrencies out there, one can be guilty of confusion about the technology behind each cryptocurrency. Bitcoin’s emergence gave rise to a certain technology in the crypto world known as Decentralized Applications or Dapps in short.
Generally, an application is any software that is used to provide features to a user through a centralized server. In decentralized applications, the backend code is run on a decentralized peer to peer network.
In this article, we will discuss the most prominent decentralized platforms;
Founded by Vitalik Butterin, Ethereum is the most popular cryptocurrency after Bitcoin. Ethereum is a decentralized platform on which decentralized applications can be built and run.
In 2017, out of the top cryptocurrencies, more than 30 cryptocurrencies were based on Ethereum’s platform.
Ethereum’s uniqueness derives from a certain feature known as the smart contract. A smart contract is an automated mechanism that checks for certain requirements to be met and then performs given tasks. For instance, you can go to a coffee shop and your smart contract will pay for your bill when you finish your coffee.
Ethereum was one of the first decentralized platforms hence it has the advantage of having the most experience.
Ethereum works on a certain mechanism known as Proof of Work. Proof of Work helps in the validation of transactions on the network. However, it requires heavy computations and thus makes Ethereum a costly option.
Cardano is often dubbed as “Ethereum-Killer”. It is created by one of the most popular names in cryptocurrency, Charles Hoskinson, Ethereum’s Co-Founder. Cardano aims to be a platform that can be used by anyone in the world for its financial applications. Cardano‘s team is currently working to solve the most difficult problems in space.
Cardano’s whitepaper is considered by many as the best in the crypto sphere. Many people have commended Cardano’s team for their brilliant analysis and detail.
When a transaction happens in Bitcoin’s network, it only notes the name of the sender, receiver and amount. However, real-world transactions are not that simple. There is a need for more information regarding a transaction like the reasoning behind the transfer of money. Ethereum improved on this by adding this information in its transactions. However, Cardano improved it further. With Cardano, you can separate the information of a transaction into two layers.
There is an air of uncertainty regarding the implementation of its product in Cardano’s community. Cardano works on a language called Plutus which is under-developed. Many people are concerned whether Cardano’s team, despite its technical expertise, will be able to transform their wonderful whitepaper into a workable product.
Neo is popularly known as Chinese Ethereum. It was created by Da Hongfei in 2014 and was named as Antshares. However, it was later rebranded to Neo. It is created to form a scalable network where decentralized applications (Dapps) can be easily run.
Fewer cryptocurrencies enjoy as much support from their government as Neo has gotten. China is feared in crypto space for its banning of cryptocurrencies but the Chinese government has supported Neo strongly. Due to the massive Chinese cryptocurrency market, Neo has the potential to reach the top.
Decentralized applications can be easily developed on Neo through the use of programming languages like Java and C#. These two languages have one of the largest communities and thus, Neo’s development future is not uncertain like Cardano’s.
Due to Chinese’s government history and policy, a lot of people are uncertain to associate with Neo. However, Neo’s founder plans to go international and move outside of China.
All of these above platforms involve the best teams in the crypto industry. They are also placed currently in the top 15 cryptos of the world and are brimming with immense promise.
However, the question is who will be the ultimate winner on which decentralized apps will be built the most? We believe Neo has that potential to be the best platform for the development of a decentralized application. It ticks all the necessary boxes. It has improved on Ethereum’s features and its development is in more advanced stages than Cardano.