Have you heard about altchains but never knew what it meant? This video is intended to serve as a starting point for anybody interested in learning more about altchains. You may be a newbie starting out from scratch and dealing with blockchains for the first time, or you might already have some knowledge of BTC or ETH and want to branch out now. Either way, best believe you will be educated with this video! Alternative blockchains (altchains) is an acronym for any blockchain that isn't Bitcoin or Ethereum. Altchains arose in 2021 as a result of Ethereum's scalability and transaction fee issues, and altchain developers seized the opportunity to create more scalable and low-cost blockchains to compete with Ethereum. Terra, Avalanche, and Solana are just a few of the numerous alternative blockchains that exist today. To completely comprehend altchains, you must first know these ideas. Layer 0 is a protocol that allows layer 1 (L1) solutions to interact on the same network.

L1 blockchains are constructed on the basis of Layer 0, which allows the complete blockchain to be placed on top of it. An example of the Layer 0 protocol is the Polkadot network. In a decentralized blockchain ecosystem, L1 refers to the basic primary blockchain network. Layer-1 blockchains include Bitcoin, Ethereum, and Solana. Layer 2 or L2, on the other hand, is a third-party integration that continues to work on the upper end of a layer-1 blockchain to help scale a proposal by processing transactions outside of the main blockchain (L1) while preserving the very same stability and decentralization. A sidechain, such as Ethereum, is a secondary blockchain that runs in parallel to the main L1 chain. What separates layer 2 solutions and sidechains is that sidechains are separate blockchains connected to the mainchain, each with its own consensus method. Layer 2 solutions, on the other hand, are built as extensions of mainchains and depend

on their security framework. Polygon for Ethereum and DeFi Chain for Bitcoin are two examples of sidechains. Altcoins or alternative coins refer to any cryptocurrency that isn’t Bitcoin. They can be grouped into different tokens such as DeFi tokens, meme tokens, utility tokens, NFT tokens, stablecoins, etc. Most of them are commonly minted on altchains and do not belong to their own blockchain. EVM stands for Ethereum Virtual Machine and is a virtual environment that gives developers an opportunity to create smart contracts on the Ethereum blockchain. EVM allows smart contracts to have more functionality without being unnecessarily cumbersome. Now, there are two ways to go about this. One is to get initial crypto funds with a crypto exchange or to set up a private crypto wallet. It is recommended that you get your first crypto money from a reputable centralized crypto exchange (CEX). You may choose the CEX by looking at the CoinGecko CEX Trust Score Ranking that is linked in

the description box below to see how reliable crypto exchanges are. Given the present high transaction cost problems, absolute beginners (especially those with limited funds) should begin their crypto experience on an Ethereum L2 or sidechain like Polygon or Arbitrum or an L1 blockchain with minimal transaction fees. Say you are thinking of purchasing Solana. To begin, buy some SOL tokens on your preferred CEX. We've included several fiat onramp alternatives in our table, which means you can buy SOL using fiat cash. Alternatively, stablecoins may be required to acquire SOL. After you've completed, put the tokens away. We'll now establish your own Solana wallet and move your freshly acquired SOL to it. To evaluate the blockchain you choose, you must first build a wallet that supports it. It is recommended that novice users begin with a browser wallet because certain wallets are only compatible with particular chains, we've included a list above. In this part, we'll utilize the Solana Phantom wallet and Chrome Browser to demonstrate the

important stages. To begin, go to the authorized Phantom wallet site and choose download or add to chrome. After being redirected to the web store, you will need to establish a wallet. Follow the on-screen instructions and remember to write down your mnemonic phrase or private key and keep it in a safe place. Copy the public address of your wallet and use it to send money from the centralized exchange to your wallet. It's crucial to double-check that the wallet address and blockchain you select in the CEX correspond to the address and blockchain of your wallet. It will be hard to recover funds if you accidentally transferred them to the wrong address or blockchain. One thing to bear in mind is to make sure that the wallet is supported for the chain you are planning to go into. For example, if it’s an EVM chain, you can use a MetaMask. Otherwise, it will have to be a separate wallet such as Phantom for Solana, or Terra Station.

for Terra. Processing transactions on a blockchain usually involves transaction fees, which are usually paid in the chain's native coins. When utilizing the Solana blockchain, for example, you'll require SOL tokens to cover transaction fees. Now that you have some SOL in your Phantom wallet, you may use them to interact with Solana dApps or exchange them for any other cryptocurrency on the network. Let's imagine you wished to communicate with Solend, a Solana lending protocol. To deposit collateral, you may either utilize SOL or switch to stablecoins such as USDT or USDC. If the pool is not pre-configured in the DEX, you can search for the token using a custom Token Contract Address. If you get the contract address from a third-party source, be cautious of a suspected honeypot or counterfeit token pool frauds. You may check the authenticity of the address by going to the token page on CoinGecko.

Now, the third way to use altcoins is to bridge them across different chains. Crypto users often have limited finances to experiment when it comes to multiple chains. There are two methods for transferring money from one blockchain to another: For example, say you are converting your existing funds into native tokens or stablecoins of the original blockchain, and then the tokens are sent to a CEX wallet. Next, utilize CEX to swap the token for native tokens or stablecoins on the selected blockchain. And then, transfer them to your new blockchain wallet. Assume you wish to use a CEX to move funds from Solana to Ethereum mainnet. Step 1: Convert your cash to SOL tokens via a Solana DEX. Step 2: Deposit SOL into your CEX wallet that is under the Solana Mainnet, and exchange ETH for SOL. Step 3: Deposit your ETH tokens onto your MetaMask wallet which is under Ethereum Mainnet.

Next is the transfer of funds through bridges. To get started, go to a trusted cross-chain bridge online application, link your wallet, and enter the kind and amount of assets, as well as the destination blockchain and wallet address. Finally, confirm the transaction and get your cash by following the prompts. The money in the second blockchain will take some time to move to your wallet. Although understanding how to operate a bridge, in general, is not difficult, most bridges function in a variety of ways. It will be helpful to use bridge aggregators such as ApeBoard that shows the types of bridges that will go along with specific chains. As a result, it is necessary to read the handbook for each bridge and any instructions before using it. The last way to use these altcoins is to use explorers to check the transaction progress. If you're confused whether you transferred funds to the wrong wallets, if your transactions are stalled, or if you have any other worries, use blockchain explorers to examine transaction

status and history. To examine your most recent transaction history, simply input your wallet's public address into the explorer, and voila, your transaction history is displayed! What are your thoughts on altcoins? What are the other ways we can use them? Leave them down in the comments below and let's discuss! If you like to stay updated on all things crypto - make sure you click on that subscribe button and turn on the notification! Also, follow us on Twitter, Instagram, and Facebook for all the latest crypto updates.

What Are Altchains? Layer 0, Layer 1, And Layer 2 Explained

What Are Altchains? Layer 0, Layer 1, And Layer 2 Explained

스크립트