There are several hundred active blockchain networks hosting thousands of cryptocurrencies. These blockchains are built differently, with varying features and specifications depending on the developers’ intended purposes. Since there are many options, it is crucial to understand the unique value each one offers, to properly determine which is the blockchain for a new crypto. Nonetheless, users and developers must note that some of the best cryptocurrencies on the market may be hosted on a variety of blockchains, each one matching the network’s specific features and qualities.
Factors To Help Decide the Best Blockchain for New Cryptos
Choosing the best blockchain for new cryptocurrencies depends on factors that align with the asset’s vision and potential use cases. The following are a few factors to consider:
Decentralization: A truly decentralized blockchain ensures that no single entity can wield control of the network. This feature helps maintain transparency and trust, ensuring that any network changes or updates are jointly decided on instead of implemented by powerful entities.
Scalability: Highly scalable blockchains can handle a large number of transactions simultaneously. Crypto assets intended for widespread use may have to consider blockchains known for scalability to avoid network congestion when the asset achieves extensive adoption. Blockchains struggling with scalability issues may sour the average user’s experience if transactions are generally slow or lag for too long during periods of increased activity.
Smart Contract Functionality: Blockchains that support the easy creation and execution of smart contracts may be crucial depending on the asset’s purpose. For instance, assets designed for crypto gambling may require smart contract integration to automate actions and transactions typical of online casino establishments. Completing these actions manually may negatively affect a customer’s user experience.
Interoperability: Developers creating cryptocurrencies intended for popular use may consider blockchains that support interoperability, enabling asset exchange across multiple networks. Interoperability may also extend to the traditional market, allowing easy integration with legacy systems that help to expand adoption.
Security: The best blockchain for a new cryptocurrency should have dependable security measures and a low risk of unwanted penetration. This helps prevent attacks and breaches and reduces the likelihood of smart contract failures or vulnerabilities.
Transaction Costs: Developers behind new cryptocurrencies may consider blockchains with low transaction costs to attract crypto users and compete in a saturated market. Blockchains with expensive transactions reduce the likelihood of widespread acceptance.
Robust Ecosystem: Some blockchains already have a strong community and ecosystem, with some of the best developers and tools. These blockchains have extensive libraries filled with information that can help smoothen the development and deployment process for new cryptocurrencies.
Popular Blockchains to Consider for New Cryptos
- Ethereum: The Ethereum blockchain is one of the most established networks and is easily the most used for new cryptocurrencies and decentralized applications (dApps). The blockchain’s native ETH token is also compatible with many dApps and is one of the most widely accepted digital assets in the blockchain space.Ethereum pioneered the concept of smart contracts and has popularized the technology to widespread adoption by other networks. Ethereum also has a large community, including many skilled developers who continuously offer support and resources while contributing to the network’s innovation. However, Ethereum is not the most scalable network and sometimes struggles with high transaction fees and slow transaction times that lead to network congestion.
- Solana: Solana is popular for its impressive scalability and high transaction speeds. Launched in 2020, it has become one of the most popular blockchain networks, with its native SOL token as the world’s fifth-largest cryptocurrency, according to current CoinMarketCap data. Solana’s major selling points are cheap transactions and the ability to handle several thousand transactions per second. As one of the fastest blockchains, Solana is well-suited for cryptocurrencies focused on transaction speed, and is the platform supporting several popular meme coins, including dogwifhat (WIF), Bonk (BONK), and BOOK OF MEME (BOME). However, since Solana is a relatively new blockchain, many are unsure about its long-term stability, especially since the network has crashed 11 times in two years. The repeated outages and the low number of validators, especially compared with Ethereum, have spurred conversations about centralization risks.
- Binance Smart Chain (BSC): BSC is a blockchain the Binance exchange launched in 2020. The blockchain processes transactions much faster than others and charges negligible transaction fees. In addition, the BSC design supports smart contracts and dApps that rely on these contracts, allowing developers to deploy cheap solutions to end users. Unfortunately, BSC has also come under heavy criticism for centralization problems. In addition to Binance reportedly wielding significant network control, a recent forensic analysis concluded that Binance and co-founder Changpeng Zhao own 71% of the 147 million BNB in circulation.
Conclusion: Which Blockchain is Best?
The best blockchain for a new cryptocurrency depends on the asset’s specific use cases. For instance, deploying on the Ethereum blockchain is an excellent choice for assets that need a large ecosystem of developers and resources and extensive smart contract support. However, there are also several other options that support smart contracts and offer support. Furthermore, newer blockchains, including Polkadot, BSC, and Cardano, are strong alternatives with unique perks in transaction costs, governance, and interoperability. Ultimately, choosing the best blockchain for a new crypto requires careful evaluation of the available options in alignment with the project’s needs and vision.
