A comparative study of blockchain’s largest permissionless networks

Abstract

Blockchain is increasingly gaining interest in both the academic and professional worlds. The implementation of this decentralised and distributed network has started taking place, firstly in the financial world and in recent years reaching to other industries. Nevertheless, not all blockchain networks are the same, and choosing the right consensus algorithm is important for companies willing to invest in this technology. Companies eager to implement blockchain should understand the underlying architecture when selecting a particular network. Through an in-depth analysis, this paper aims to explore and compare from a technical perspective the three biggest permissionless blockchain networks by market capitalisation: Bitcoin, Ethereum and Ripple. Our research shows that Bitcoin gains a competitive advantage as a widely adopted means of payment, Ethereum excels in adopting a robust and flexible smart contract functionality whilst Ripple is most suitable for cross-border payments due to its scalability and fast processing speed. Based on the comprehensive analysis of the networks and their consensus protocols, this paper is designed to set the ground for further studies on the emerging applications of blockchain in numerous sectors.