What is a Crypto Network?
Think of a crypto network as a global team of computers, none of them in charge, all of them working together. Every time a transaction happens, that team records and verifies it. No bank, no central authority, just the network. That's exactly why it's called decentralized, control isn't held by one place or person, it's spread across the entire network.
When you send crypto to someone, it doesn't pass through a bank. Instead, it's broadcast to the entire network, checked by thousands of independent computers, and permanently recorded on a shared ledger called the blockchain, a chain of data blocks, each one locked to the one before it. Once it's recorded, nobody can change it. Not all crypto networks are the same; each one was built with a different purpose in mind. Here are five of the most widely used public blockchains:
Bitcoin: The first and well-known cryptocurrency. Bitcoin is a digital currency on a decentralized network that lets people store and transfer money without banks.
Ethereum: A smart-contract blockchain where people can build apps like DeFi, NFTs, games, and more.
BNB Chain: A fast, low-fee blockchain created by Binance. Used for trading, DeFi apps, and powering the Binance ecosystem.
Solana: A super-fast, low-cost blockchain popular for payments, DeFi, and NFTs.
Known for speed and high performance.
Polygon: A scaling network that makes Ethereum faster and cheaper.
Used for dApps, gaming, and enterprise blockchain solutions.
Key Components of a Crypto Network
Nodes: Nodes are the computers that store a full copy of the blockchain and validate every transaction. The more nodes, the harder it is for bad actors to manipulate the system.
Blockchain: This is the shared ledger, a notebook everyone can read, but nobody can erase.
Consensus mechanism: This is how all nodes agree on what's true. Bitcoin uses Proof of Work, a computer race to solve a math puzzle to earn the right to add a block. Ethereum uses Proof of Stake, validators lock up coins as collateral. Cheat, and you lose your stake.
Always Use the Right Address and Network
This is one of the most common mistakes in crypto. Every transaction requires two things to be exactly correct: the wallet address and the network.
A wallet address is a long string of letters and numbers that uniquely identifies a wallet on a specific network. Sending ETH to a Bitcoin address or selecting the wrong network can result in funds being lost with no way to retrieve them.
Always verify both the network and wallet address before a crypto transaction. Crypto sent to the wrong network/ wallet address cannot be retrieved.
Transactions & Gas fees
A gas fee is a small charge attached to every transaction. Every transaction on a crypto network includes a small gas fee, this is what keeps the network running. It goes directly to the validators who verify and record your transaction, not to any company or middleman. Fees can vary depending on how busy the network is
Smart Contracts
A smart contract is a self-executing program stored on the blockchain. When preset conditions are met, it runs automatically, no middleman needed. Smart contracts power everything from decentralized finance to digital collectables.