Not only are there different networks, there are also different types of networks depending on where they are deployed and the communication protocol they use. Depending on which ones are used, a different set of tools must be used, as is the case with the wallet. The type of network greatly affects the degree of interoperability. interoperability.
In this article we will discuss some of the most prominent types of networks and communication protocols. Read on!
The Bitcoin network communication protocol is called Bitcoin Protocol or Bitcoin Protocol. This protocol establishes the rules and format that network nodes must follow to communicate with each other and to validate and transmit transactions.
It is important to note that Bitcoin is not a DeFi platform itself and not a platform for smart contracts and complex financial applications, as its primary focus is to be a digital store of value and a means of value transfer, while DeFi is mainly developed on other blockchains.
Therefore, on top of the Bitcoin base protocol, there are also several Bitcoin node implementations, such as Bitcoin Core, btcd, and libbitcoin, as well as layer 2 implementations, which we will talk about in the next point, such as the Lightning network.
The Ethereum Virtual Machine (EVM) is a virtual machine running on the Ethereum network. It is a bytecode-based smart contract execution environment. The EVM allows developers to write and deploy smart contracts on Ethereum using programming languages such as Solidity. It provides a set of instructions that enable interaction and manipulation of data on the network.
EVM is essential to Ethereum's functionality and has been widely adopted in the DeFi ecosystem, enabling the creation of dApps (Decentralized Applications), ERC-20 tokens (tokens within EVM) and decentralized protocols. In addition to Ethereum the networks using it are Binance Smart Chain, Arbitrum, Avalanche, Optimist....
Inter-Blockchain Communication (IBC) is a communication protocol used to connect and enable interoperability between different blockchains. IBC was developed by the Interchain Foundation for implementation in the Cosmos Network ecosystem, although it can also be used in other networks. The goal of IBC is to facilitate the transfer of assets and data between independent blockchains, allowing users and developers to benefit from interoperability. IBC has enabled the development of bridges between different blockchains such as. Cronos, Osmosis, Juno, and Evmos.allowing the exchange of tokens and the transfer of information between them.
The key feature of Substrate is its ability to enable the launch of interoperable blockchains. Polkadot, the core network built with Substrate, is a multi-chain blockchain platform that facilitates interoperability between different blockchains.
Substrate provides the necessary tools to create parachains (parallel chains) that connect to the main Polkadot network, allowing the transfer of data and assets between them.
Ripple(XRP) which uses an open JSON-based communication protocol called "XRP Ledger Protocol", Stellar(XLM) which uses the "Stellar Inter-Blockchain Communication Protocol (IBCM)" or Cardano(ADA) which uses "Ouroboros Classic" which is the network protocol that allows nodes in the Cardano network to communicate with each other.
In this sense, there are networks that are especially focused on interoperability:
Evmos within the ecosystem of Cosmosecosystem, which facilitates the connection of its communication protocol (IBC) with the Ethereum virtual machine (EVM) Ethereum Virtual Machine (EVM)
Astar Network in the ecosystem of Polkadotecosystem, which, like Evmos in Cosmos, facilitates the connection of its communication protocol (Substrate) with the communication protocol of Ethereum (EVM) and some others.
The diversity of networks and protocols in blockchain reflects its constant evolution. Each approach has a specific purpose and tools, while interoperability is key to collaboration and asset transfer between independent blockchains. Understanding these differences is essential for you to take advantage of opportunities in decentralized finance and technological innovation.You already know the different types of networks! Now you can read other articles to continue learning about the Defi world.
