People involved in the world of cryptocurrency for a few years now may have come across the SAFE Network. This project provides a decentralized data storage and communications network, which supports decentralized applications. Some people like to draw parallels between SAFE Network and Ethereum, which is understandable. However, the two are quite different, despite a seemingly similar approach.
It is not hard to see why the SAFE Network is so appealing to a lot of people. The prospect of a decentralized data storage and communications network is quite interesting. The entire network is built on peer-to-peer technology. Anyone using the SAFE Network is in full control of their data, yet software developers can build new applications on top of this decentralized infrastructure.
More specifically, it is possible to build decentralized applications – known as Dapps – on top of the SAFE Network. To do so, developers can make use of the SAFE API, which allows for the creation of a wide variety of tools. Whether it is network storage, VOIP tools, or even content distribution networks, they can all run on the SAFE Network without any problems.
However, it is important to note the SAFE Network does not use a blockchain like some people might expect. The infrastructure is more than capable of achieving consensus, though. This is done by all users who own Safecoin without a timestamp. People can provide resource sot the network and get paid in Safecoins for doing so. It is an interesting take on decentralized data storage, to say the least.
Although it is certainly possible to use the Ethereum network for data storage and communications as well, the platform seems to offer a bit more variety. By using blockchain technology, Ethereum is in a prime position to position itself as a payment solution. At the same time, the technology allows for the creation of decentralized applications and execution of smart contracts. Do keep in mind all actions on the network require gas, though.
The Ethereum network can be used for any type of decentralized project that comes to mind. Right now, a lot of companies are exploring the crowdfunding option through Initial Coin offerings. Moreover, it is easy to issue new native tokens on the Ethereum blockchain without causing any data “bloat”. Ethereum transactions are also a lot quicker compared to Bitcoin’s, which may turn it into a Bitcoin “rival” for payments at some point in the future.
It is important to note SAFE Network and Ethereum are not necessarily competing with one another. Instead, they can easily coexist, as there is no reason to think Ethereum needs to be the only peer-to-peer network to solve every problem in the world. It is capable of doing so, but it is good to have projects such as SAFE Network as an alternative as well.
If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.
GSR has formally entered the ETF market with their first ETF, $BESO, which is listed…
While the Dogecoin community has always had its share of news to talk about, it…
In a major development, Bitget Wallet has announced the integration of Polymarket directly into its…
The Aave rsETH/wrsETH market froze abruptly, leading to a rapid series of withdrawals, including one…
Last week saw major investment firm Strategy Inc. (MSTR) bust into the crypto world with…
One of Bitmine Immersion Technologies came out to be the most aggressive in its cryptocurrency…