Since the launch of Bitcoin in 2008, the field of blockchain technology has seen an amazing rise in popularity. Blockchain began as a single decentralized digital currency and has now grown into a diverse ecosystem that supports a wide range of applications, including voting systems, supply chain management, cryptocurrencies, and decentralized apps (dApps). Because of its quick expansion, people frequently wonder how many blockchains are there now. We may examine the elements that contribute to this ever-expanding network of blockchains, even if it is challenging to pinpoint a precise number because the blockchain ecosystem is always changing.
Comprehending Blockchain Technology
A blockchain is a distributed, decentralized ledger technology that keeps track of transactions across several computers in a way that makes it impossible to change the recorded transactions later. It runs on a peer-to-peer network with data integrity guaranteed by consensus techniques like proof of work or proof of stake. Although the most well-known example is Bitcoin, blockchain technology has many potential uses in a variety of sectors.
Every blockchain has a variety of uses, such as supporting smart contracts and decentralized apps (dApps), offering financial infrastructure (like Bitcoin and Ethereum), or even monitoring tangible objects in a supply chain. The number of blockchains in use today has increased along with the technology.
Comparing Private and Public Blockchains
Understanding the distinction between public and private blockchains is crucial before delving into the quantity of blockchains. Public blockchains, such as Ethereum and Bitcoin, are accessible to all users and are frequently decentralized, which means that no one organization has complete control over the network. Private blockchains, on the other hand, are permissioned networks in which transactions can only be viewed and verified by a limited number of users.
Because of its connection to cryptocurrencies, public blockchains frequently take center stage in discussions, but private blockchains are being utilized by companies more and more for supply chain management, record-keeping, and safe transactions. Although both kinds of blockchains are part of the current total number of blockchains, there are probably more public blockchains than private ones.
The Development of Novel Blockchain Technology
The 2015 debut of Ethereum raised a lot of awareness about the potential of blockchain technology outside of currency. By introducing the idea of smart contracts, Ethereum made it possible for programmers to build decentralized apps (dApps) on top of the blockchain. As a result, thousands of different blockchains with distinct use cases, objectives, and governance frameworks were made possible.
There are many of blockchains in existence today, each with special features and functionalities. Popular blockchains that provide quick, scalable, and affordable solutions for decentralized finance (DeFi) apps, NFTs, and other uses, such as Binance Smart Chain (BSC), Solana, Polkadot, and Cardano, have gained popularity.
Blockchain Networks: Existing in Thousands
There are always increasing numbers of blockchains in use. There are presently dozens of blockchains, and new ones are being established nearly every day, according to data from blockchain explorers. The consensus methods, transaction rates, scalability, and degree of decentralization of these blockchains differ from one another. Many of them are made to solve particular problems that older blockchain networks had, such energy consumption and scalability.
Although over 8,000 different cryptocurrencies are listed on different cryptocurrency exchanges, each one may be constructed on top of an existing blockchain, such as Ethereum or Binance Smart Chain, or it may exist on its own blockchain. In order to increase scalability and lessen congestion, many projects also make use of sidechains, which are distinct blockchains linked to a main chain.
Ethereum and Its Solutions at Layer 2
One of the most well-known public blockchains, Ethereum, has developed into a foundation for additional blockchains and decentralized initiatives. However, Layer 2 alternatives like Optimistic Rollups and zk-Rollups were developed as a result to Ethereum’s high transaction costs and scalability problems. A new class of blockchains has emerged as a result of these Layer 2 chains, which provide solutions that enable quicker and less expensive transactions, even if they are still reliant on Ethereum’s primary network for security.
Furthermore, it is anticipated that Ethereum’s scalability and energy consumption issues will be resolved with its move to Ethereum 2.0, which includes a switch from proof of work to proof of stake. As more initiatives seek to expand upon Ethereum’s developing infrastructure, this change is probably going to have an impact on the total number of blockchains.
Cross-Chain Communication
The emergence of cross-chain interoperability greatly complicates the number of blockchains. The ecosystems created by projects like Polkadot, Cosmos, and Chainlink enable blockchains to interact with one another, increasing the reach of each blockchain separately. It is now simpler for developers to create applications that span several blockchains thanks to these interoperability solutions, which has increased the number of interconnected networks and made it more challenging to determine the precise number of blockchains.
Users and developers may easily exchange data, move assets, and communicate with other networks by bridging between different blockchains. This increasing interconnection implies that the number of blockchains reflects the larger ecosystem of interconnected blockchain networks as well as individual networks.
Enterprise Solutions Using Private Blockchains
Private blockchains are essential to the commercial sector, while public blockchains garner the most attention because of their connection to cryptocurrencies. Numerous businesses have created their own private blockchains for applications in industries like finance, healthcare, and supply chain management.
One of the most well-known systems for private blockchains is Hyperledger, a project started by the Linux Foundation. Hyperledger is used by numerous sectors to build private blockchains tailored to their unique requirements. Even though enterprise solutions might not be as well-known or openly available as their public counterparts, their popularity contributes to the growth of blockchains.
Platforms for Blockchain as a Service
The emergence of Blockchain-as-a-Service (BaaS) platforms is another expanding trend. BaaS is provided by companies such as IBM, Amazon, and Microsoft to assist companies in creating their own blockchain networks without having to start from scratch. These platforms have significantly increased the number of blockchains by making it simpler for businesses to develop and implement private blockchains for certain use cases.
Since many businesses are creating custom solutions to suit their unique requirements, the overall number of blockchains may be even bigger than first thought. This is because these BaaS platforms frequently leverage pre-built blockchain protocols.
Layer 1 and Layer 2 Blockchains in the Blockchain Ecosystem
There are two types of blockchains in the larger blockchain ecosystem: Layer 1 and Layer 2. The fundamental blockchain system, like Ethereum or Bitcoin, is referred to as Layer 1 and manages its own consensus and transaction processing. Protocols like the Lightning Network for Bitcoin or Optimistic Rollups for Ethereum are examples of Layer 2 protocols, which are constructed on top of Layer 1 to improve scalability, speed, and efficiency.
By adding specialized layers to the main blockchain, Layer 2 solutions increase the total number of blockchains as they become more widely used. The number of blockchain networks is further increased by these supplementary layers, which solve performance problems and improve the efficiency of decentralized apps.
The Increase of Blockchains by 2025
It is projected that the number of blockchains will increase more as blockchain technology develops. The development of further blockchain networks is anticipated to be fueled by advancements in governance, scalability, and cross-chain interoperability. For example, new consensus algorithms like Proof of Authority (PoA) or hybrid models may result in the creation of more blockchain networks that serve particular use cases or niche industries.
Since every new project has the ability to create its own blockchain or platform, the emergence of decentralized finance (DeFi), non-fungible tokens (NFTs), and other blockchain-based applications will also help to fuel this expansion.
Difficulties with Blockchain Counting
Although public data can be used to estimate the number of blockchains, it is crucial to remember that the blockchain ecosystem is extremely dynamic. Existing blockchain projects may see significant modifications or mergers, while new ones are frequently introduced. The fact that certain blockchains are experimental or made for particular short-term use cases makes counting them even more difficult.
It is practically impossible to pinpoint the precise number of blockchains that are now in use due to the intricacy of the blockchain sector and the speed at which innovation is occurring. However, depending on how a “blockchain” is defined and the standards used to include or exclude particular projects, estimates might vary from several thousand to even more.
In conclusion
In conclusion, there are thousands of unique blockchain networks functioning in a variety of sectors and businesses, and the number of blockchains in use today is continuously increasing. Even though public blockchains like Ethereum and Bitcoin are still the most well-known, the total number also includes private blockchains, Layer 2 networks, and enterprise solutions. The blockchain ecosystem is dynamic, and as new technologies appear, it is anticipated that the number of blockchains will keep growing, resulting in a more intricate and linked environment. Blockchains are changing the way we think about data, trust, and security in the digital age, whether they are private or public, decentralized or enterprise-focused.