different types of cryptocurrency transfer networks

 

You must have experienced posting a package from one place to another. On each postal package, the sender and recipient address must be entered in full detail. If the recipient’s address is in another city, the postal conditions will change. It may not be possible to transfer to the city of your choice or your package may need to be transported by plane or ship. Digital currency transfers can also be compared to the transfer of a package by mail. Digital currency transfer network is one of the most fundamental and interesting concepts in the world of digital currencies.

Digital currency transfer networks, also known as digital currency transfer platforms, can be likened to separate cities. In these cities, it is not possible to post any packages outside the city or this is done with special conditions. Therefore, when you want to send a packet from one point to another, you have to make sure that the destination address is in the city.

Understanding the digital currency transfer network requires understanding the overall mechanism of the blockchain network.

Bitcoin, the world’s first digital currency, was created to eliminate intermediaries in the asset transfer process. In a traditional economic system, you need a trusted intermediary to transfer money or real estate. Banks, notaries, and financial institutions are the intermediaries that oversee the transfer of assets from one person to another.

Bitcoin used a network called Blockchain to eliminate these intermediaries. The foundation of any digital currency is a blockchain network. blockchain networks consist of a number of nodes or nodes. These nodes are computers that store all the information and protocols of the network and, in accordance with the rules set for the network, are engaged in the authentication of transactions. Each blockchain network uses specific methods and rules to verify transactions, called consensus algorithms. In fact, the consensus algorithm is the node instruction to approve or reject a transaction.

In this network, only one buyer and one seller are needed to make a financial transaction. The Bitcoin blockchain network has taken on the task of overseeing and securing the bank, which was previously the responsibility of the bank.

Cryptocurrency transmission networks became important with the advent of post-bitcoin coins and other tokens. Until now, all transactions could only be done on the Bitcoin network. Some of these currencies set up a new blockchain network, such as Ethereum, and others built their platform on pre-built networks, such as Chain Link, which was built on the Ethereum network.

All coins and tokens created on a common blockchain network can be traded on that network. A token may be supported by multiple digital currency transfer networks. In this case, the transfer of this currency between different networks of digital currencies is also possible.

Each blockchain network has defined a unique token generation standard for its network. Thus, people who want to create a token on that network; They must follow the network standard and create their own token in accordance with the rules of the original blockchain network. Quinns and tokens made to a standard; They have the same transmission network.

When transferring a coin or token from your account, you need to consider what network your coin is created on and whether the destination wallet supports that network. If you send your coins to a wallet that does not recognize your target network, you may lose your assets.

 

Types of digital currency networks

Types of digital currency networks

Obviously, every blockchain network has its own consensus algorithm. The speed and cost of transactions in each network is different and therefore, for each network, a unique protocol is considered. For example, the Bitcoin digital currency transfer network is slower than the Ethereum Cryptocurrency transmission network. The goal of creating new digital currency transfer networks is to increase the speed, scalability and reduce transaction fees.

There are many digital currency transfer platforms. In this section, a brief description of some of the most popular of these networks is provided:

ERC 20

This standard is defined for the Ethereum fold block and one of its purposes is to simplify the token creation process on the Ethereum block block. For this reason, the Ethereum blockchain is one of the most popular blockchains for hosting new tokens.

BEP2 and BEP20

The BEP2 standard is defined for the Binance blockchain and is different from BEP20. The native coin of this blockchain is called Baines Coin (BNB). The BEP20 is the standard for Bainance Smart chain Network and is faster and more scalable than the BEP2.

TRC20

The digital currency transfer platform for Tron blockchain is called TRC20. Theron network is known as the cheapest digital currency transfer network because the digital currency transfer fee in this network is very low and transactions are processed at a very high speed.

Omni Network

One of the most important protocols available on blockchain is the Omni network. The purpose of this network is to perform complex encrypted transactions. For this reason, you have probably encountered one of the transfer routes when transmitting the currency code through blockchain networks called Omni.

Creating a Layer Omni token is an initiative to create a protocol layer on the Bitcoin blockchain and other systems, and is a complex project. This protocol will allow transactions through the above token, in the blockchain of Bitcoin and other digital currencies. This protocol has many applications that provide a good perspective on the exchange of digital assets in this environment, because it is the highest and most basic layer for digital currencies.

As mentioned, the Omni Network is a layered protocol built on bitcoin that allows you to transfer assets with tokens that have any type of digital asset. The OMNI token is the first asset on the Omni Layer network, receives commissions from unreliable exchange offices, and can convert any other currency code using smart contracts on the Omni Layer network. So instead of just using bitcoin in transactions, we can send a very small amount of bitcoin that acts as a confirmation stamp and that transaction will use the Omni Layer feature forever.

The token mechanism in the Bitcoin blockchain platform is supported by a variety of web wallets. The symbol of this standard can be seen in all exchanges covered by Bitcoin and other Altcoins. Another feature of the Omni is its pairing with the USDT Stable Coin, which makes it easy to trade. Transactions are registered by a public address given to the blockchain and shown to others. Thus, while the true identity of the person is preserved, all transactions are made with a public address. This public address is the same as the digital wallet address used to transfer digital currencies.

The best network for Ethereum transmission

Ethereum is a popular digital currency based on Blockchain technology that operates based on the use of tokens that are bought, sold or exchanged. The best network for Ethereum transfer is the BEP20 network, which stands for Binance Chain Evolution Proposal 20, and is a technical standard for creating and using new tokens in Bainance chain. In other words, the BEP20 network is a token standard in Bainance Smart chain that develops ERC20 and BEP2 tokens and provides the ability to move tokens between different blocks.

The goal of the BEP20 network is to establish a set of rules for the operation of tokens on Bainance  chain platform. Also, using the BEP20 network, you can use compatible tokens in different blockchains. In this network, compatible tokens can be used in different fold blocks. BEP2 tokens can be exchanged for BEP20 standard equivalents, paying only 0.05% of the transaction cost and completing the transaction within 3 seconds. Therefore, this network can be considered one of the best in terms of transaction speed and commission costs.

The best digital currency transfer network

Digital currency transfer networks are developing day by day and trying to eliminate their shortcomings. For this reason, the security factor in them is always increasing and the processing speed of transactions is also increasing. However, some of these networks will cost you a lot of money and at the same time have a low speed. A token may support several different currency transfer networks simultaneously. In this case, the user has more freedom of action and can choose one of the available networks for transmission.

In order to be able to choose the best network for exchange, you need to consider features such as transfer speed and transfer cost. A network that can transfer you in a short time and at a low fee is a good option for exchange. Therefore, when choosing the best network for transferring digital currencies, you should consider the following:

• Transaction processing speed
• Security factor
• Received commission
• Compatible tokens and wallets
• Base blockchain
• Features and facilities

 The cheapest cryptocurrency transfer network (in terms of commission)

Traders who have just entered the world of digital currencies usually use the main network of each currency to transfer their digital currency assets. Imagine that a novice trader buys some bitcoins in his first trade and intends to keep the currency. So it decides to move it to a platform with higher security than its trading environment, for example it chooses the TRUST WALLET wallet. In this case, the trader, due to his inexperience, will probably use the BTC network, which is the main bitcoin network, to transfer his digital currency.

Novice traders generally charge high transaction fees by choosing the first network they see in the list of digital currency transfer networks. The Smart Chain Network, owned by Bainance Exchange, has enabled traders to transfer bitcoins and other cheap digital currencies. These transfers are very cheap and fast. Networks in terms of fees (in order of minimum fee to maximum fee) are as follows:

• TRON20 TRON Network
• BEIN20 Smart Chain Binance Network BEP20
• Binance Coin Network BEP2
• Ethereum ERC20 network
• OMNI Bitcoin Network

The fastest digital currency transfer network

The networks in terms of transmission time (respectively minimum time to maximum time) are also listed below:

• TRON20 TRON Network
• Binance Coin Network BEP2
• BEIN20 Smart Chain Binance Network BEP20
• Ethereum ERC20 network
• OMNI Bitcoin Network

Differences between digital currency transfer networks

Blockchain networks differ in the type of consensus algorithm. For example, the Bitcoin network proof-of-work algorithm is used, while Solana’s digital currency uses the stock-proof consensus algorithm. Differences in the consensus algorithm affect the cost and speed of transactions. Newer digital currencies, such as Solana, are usually more scalable and have lower digital currency transfer fees.

Network selection in digital currency transfer

Choosing the right network is very important in transferring digital currencies. This network should be chosen in such a way that the transfer of digital currency is done with the lowest fee. Depending on the type of coin you want to transfer, you can use one or more networks to transfer it. Most wallets display the existing standards for Quinn by selecting Quinn and going to the Submit page.

If you did not know what standard your Quinn met; You can easily search by Quinn name, standard and suitable network to transfer it. Also keep in mind that the destination wallet must also support your transmission network, otherwise it is not possible to send the desired digital currency and you will have to replace it with another currency.

Lowest Digital Currency Network Fee – Cheapest Digital Currency Transfer Network

Theron (TRC20 standard) is commonly known as the cheapest digital currency transfer network. If you do not have a specific currency in mind and you just want to transfer some money, it is better to convert that money into a digital currency that has a cheap and fast transfer network. Theron is one of the best options and is usually supported in exchange offices. But there are other currencies, some of which I will introduce below:

1- Ripple

Approximate transaction confirmation time: 4 seconds

2- Bitcoin Cash

Approximate transaction confirmation time: 2.5 hours

3- Dash

Approximate transaction confirmation time: 15 minutes

4- Litecoin

Approximate transaction confirmation time: 30 minutes

The transaction confirmation times mentioned in this article may change as the digital currency changes, and is not a fixed amount. Note that in order to control the cost of digital currency transfer, in addition to the fee you pay to the Cryptocurrency transmission network, the exchange office may also have a transfer fee. So in addition to choosing the cheapest digital currency transfer network, you should also be careful in choosing an exchange.