ROOM 9

PRESENTS :
ASSIGNMENT 1
TYPES OF BLOCKCHAIN
NETWORKS
&
BONUS SECTION
1. OVERVIEW OF DIFFERENT BLOCKCHAIN NETWORKS
Public
an
Bitcoin
valuable
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safe Blockchain:
internet
and Ethereum
because
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CONTINUATION……
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private
control
that Blockchain:
blockchains.
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 SECTION 2 : A DEEPER DIVE
INTO BLOCKCHAIN NETWORKS
1A. TRON
TRON (TRX) is
throughput
transactions.
mechanism Ita utilizes
and public
infrastructure
supportsblockchain
a Delegated
smart platform
for decentralized designed
applications
Proof-of-Stake
contracts written to and
in (DPoS)provide
Solidity. high-
financial
consensus
TRON’s main
creationlike
tokens of BTTfeatures
(TRC-10),
diverse and
and ainclude
dApps
USDT. and acustomized
KhaosDB three-layer architecture,
for storingwallets,
forkedand it support
chains. It also for
supports nativethe
enables
popular
1B. TRON
Advantages
High
secondtransaction
friendly and
thanasome throughput,
transaction withofaunder
finality
other blockchains. speedthree
of up seconds,
to 2,000 transactions
making it more peruser-
TRON’s
supportfocus
versatile for on entertainment
smart
platform contracts
for variousand and
use content distribution,
decentralized
cases along
applications, withitits
makes a
Disadvantages
Like any blockchain,
technical TRON
architecture faces security
and protocol and scalability
have been challenges,
subjects of scrutiny and its
2A . RIPPLE
Ripple is a decentralized platform that allows digital and fiat currencies to be
transferred across international borders on the same network without an
intermediary, in real-time. Ripple is known for its digital payment protocol and
XRP, its native cryptocurrency.

The platform, which was developed and promoted by Ripple Labs, has two
main components: RippleNet and XRP Ledger (XRPL).

RippleNet is a network of financial institutions that use Ripple’s technology to

enable cross-border transactions. XRP Ledger is a decentralized, open-source
blockchain that processes and verifies transactions on the network.
2B. RIPPLE
One important question has to do with the way the platform’s consensus
mechanism works. Unlike cryptocurrencies that employ decentralized
consensus mechanisms, such as proof-of-work (PoW) or proof-of-stake (PoS),
Ripple employs a unique protocol that requires a limited number of nodes
called validators to arrive at a consensus.

The decentralization of a cryptocurrency is an essential aspect of its security

because it prevents any single entity from having too much control over the
network. With Ripple’s consensus protocol, however, a small group of validators
has the power to approve transactions. Critics point out this also gives them the
power to collude and manipulate the network.
2C. RIPPLE
When a transaction is initiated on the Ripple network, the sender’s own node
validates the transaction and signs it with a private key.

The transaction is broadcast to a group of trusted nodes on the network.

The nodes add the new transaction to a list of other transactions that are
waiting to be processed. This list is called the transaction pool.

Each node reviews the new transaction in the transaction pool and creates a
list of transactions to include in the next ledger. This list is called a candidate
set of transactions.
2D. RIPPLE
Each node shares its candidate set with the other trusted nodes and reviews the
candidate sets submitted by the other nodes.

Each node decides whether to keep its candidate list of transactions as is or

optimize it using part (or all) of another node’s candidate list.

This process of sharing, reviewing, and iteratively improving candidate sets is

repeated until a supermajority of nodes agrees on a set of candidate transactions
to include in the next ledger.

The newly created ledger is then added to the blockchain, which is a tamper-
evident record of all transactions on the network.
3A . AVALANCHE
Avalanche is a private permissioned blockchain network designed for high
performance and scalability.

Its unique Avalanche Protocol uses randomly chosen validators for fast
transaction confirmation (sub-second finality) and efficient scaling (thousands
of transactions per second).

Custom virtual machines and subnets enable developer-friendly

customization.

Decentralization concerns exist due to initial validator selection by Ava Labs

3B . AVALANCHE
● Youthful Network: Avalanche is relatively young compared to
established rivals like Ethereum.
● Developing Ecosystem: Applications and tools are rapidly expanding, but
the ecosystem is still maturing.
● Uncertain Governance Direction: The future of Avalanche's governance
and decentralization remains unclear, requiring further observation.
3C. AVALANCHE
Further Considerations:

● Target Audience: Avalanche prioritizes enterprise and institutional use cases

requiring high performance and customization. For purely public applications,
other networks might be more suitable.
● Competition: Ethereum, Solana, and other scalable platforms pose significant
competition. Avalanche must constantly innovate to maintain its edge.
● Security: While the Avalanche Protocol seems secure, its young age means
less battle-testing compared to established networks. Careful evaluation is
crucial before deploying critical applications.
3D . AVALANCHE
Avalanche
it doesn'tand
offers flexibility relydeveloper
on a singlefriendliness
dominant programming
by supportinglanguage. Instead,
multiple options:
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to Solidity:
Avalanche
Virtual Widely
with
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easily someused
(AVM).
transition for Ethereum
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Ethereum available on
developers
2. Python:
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audience, Through
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developers
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blockchainwrite smartto
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a broader
BONUS SECTION : QUESTION
2
1A. TRANSACTION OUTPUTS AND INPUTS
Transfer Outputs (TXOs) - Represent the destination of funds in a blockchain
transaction.

Created when a transaction is successfully executed and added to the

blockchain.Each output contains:
○ The amount of cryptocurrency being transferred.
○ The recipient's address (public key).
○ A unique identifier (transaction hash).
● Once created, outputs become "unspent transaction outputs" (UTXOs)
that can be used as inputs in future transactions.
1B. TRANSACTION OUTPUTS AND INPUTS
Transfer Inputs - Represent the source of funds in a blockchain transaction.

Reference specific UTXOs from previous transactions.

To spend a UTXO, you must provide a valid digital signature that proves you
own the private key associated with the UTXO's address.
A transaction can have multiple inputs, allowing you to combine funds from
different UTXOs.
2A.UTXO MODEL
The Unspent Transaction Output (UTXO) model is a fundamental accounting
model used by Bitcoin and many other cryptocurrencies to track ownership
and facilitate transactions. It might seem complex at first, but
understanding it is key to truly understanding how these systems work.

UTXO in Essence:

● UTXO represents a specific amount of cryptocurrency: Think of it as a

"digital coin" with its own unique identifier.
● UTXOs are created with every successful transaction: Each output from
a transaction becomes a new UTXO.
2B. UTXO MODEL
● UTXOs can be spent in subsequent transactions: To spend a UTXO, you
need to:
○ Claim ownership: Provide a valid digital signature proving you
control the UTXO's associated private key.
○ Specify its destination: Indicate the recipient's address and the
amount you want to send.
● Spent UTXOs are consumed: They essentially disappear from the UTXO
set and are no longer spendable.
● New UTXOs are created: The transaction outputs represent the remaining
funds and any change received.
2C. UTXO MODEL
Key Features of the UTXO Model:

● Prevents double spending: Each UTXO can only be spent once, ensuring
security and integrity.
● Transparent and immutable: All UTXOs and their history are recorded
publicly on the blockchain.
● Flexible transactions: You can combine multiple UTXOs as inputs and
split funds into multiple outputs in a single transaction.
● No account balances: Instead of tracking account balances, the UTXO
model tracks individual pieces of currency.