There’s a lot of coin shilling on social media platforms going on these days. While it’s certainly interesting to have a small part of your portfolio invested in alt coins, it might not be easy to find one you think is worth to invest in. Well, in this post I will cover the top 5 Cryptocurrencies that are heavily hyped versus the top 5 Cryptocurrencies that are less shilled but might be worth to invest in.
Cryptocurrencies people tell you to buy
Let’s start with the top 5 that people tell you to buy. Don’t get me wrong, these project are solid and you should consider investing in them.
1. Cardano
Cardano is an open source blockchain project that has been developed in layers to run financial applications that can be used by companies, consumers and governments worldwide. It can be used to send and receive digital money, ensuring fast and instant transactions that are cryptographically secure. The project has a tiered development that allows the dedicated team of coders and engineers to easily maintain the blockchain and upgrade it with soft forks. ADA is the blockchain's currency token.
Like Ethereum, Cardano wants to be able to run decentralized applications or dApps in the future. Once work on this ADA settlement layer is complete, the Cardano team will build a single smart contract processing layer with respect to financial regulations and legal agreements. Unlike other blockchain projects, Cardano has taken a research-oriented approach to solve the significant problems facing today's consumer.
2. Polygon
Polygon (previously known as the Matic Network) is a framework for creating interconnections between blockchain networks. It tries to address some of Ethereum's main limitations - including processing capacity, poor user experience (delayed transactions), and lack of community governance. Polygon does this by using a new sidechain solution.
Rather than a simple scaling solution like its predecessor Matic Network (which uses a technology known as Plasma to process off-chain transactions before they are completed on the Ethereum backbone), Polygon is designed to be a complete platform. It is also designed to launch blockchains without restrictions.
3. Stellar
Stellar (XLM) is a platform that connects banks, payment systems and people. By integrating Stellar, money can be moved quickly, reliably and at virtually no cost.
The cryptocurrency project was started in 2014 and aims to facilitate global payments between people. They advertise themselves on the website as an open-source, distributed payment infrastructure. Stellar wants to make payments with fiat currency cheaper and faster.
4. Chainlink
Chainlink is a project that has a solution for the issue that smart contracts on their own cannot communicate with external sources. This includes sources such as bank transactions, information about events, market information, stock prices, etc.
Chainlink helps linking blockchains and data from outside of the blockchain. In other words: it offers the possibility to create smart contracts that communicate with external data. Chainlink works as a middleman, it makes it possible, for example, to have a smart contract talk to PayPal so that the payment details can be included in the contract and adjusted.
5. Polkadot
Polkadot manifests itself as a protocol that is directed to sharding and multi- and cross-chain data transmission. Polkadot does this from an open source solution.
The whole essence of Polkadot is that, thanks to its protocol, it allows different blockchains to communicate and work with each other. This an unique feature because most blockchains are purely internally focused on their own data flows and a private network.
Polkadot thus ensures that different blockchains can work with each other and can integrate.
Cryptocurrencies that are worth investing in
Now, behind that wall of shilled currencies and tokens are some pretty solid projects that you should consider investing in. Let's take a closer look shall we?
1. Cosmos
Cosmos (ATOM) describes itself as an ecosystem of independent blockchains that aims to form the basis for the next generation of the internet.
The Cosmos project is primarily led by Tendermint Inc. This is a private for-profit entity, with funding for development coming from the Interchain Foundation, a non-profit organization based in Switzerland.
Instead of sowing divisions between the various existing crypto coins, Cosmos wants to bring them together. To this end, the project wants to promote cooperation between the different blockchains and create an “internet of blockchains”.
To achieve this, the Cosmos team has developed three components, which together form the Cosmos network:
- Tendermint Core: an open-source blockchain development platform. Anyone can easily integrate a decentralization layer into their own application with this feature. Terndermint Core uses Byzantine Fault Tolerance (BFT) consensus to process 250,000 transactions per second.
- Cosmos SDK: a developer kit that makes it easy to create a secure blockchain application on top of Tendermint. According to the developers, creating a blockchain shouldn't be more complicated than coding a few modules with this tool.
- Inter Blockchain Communication Protocol (IBC): This third component enables communication between all existing individual blockchains.
2. Monero
Monero (XMR) is a secure, private and untraceable currency system. This allows anyone with an internet connection to make payments to anyone in the world. It uses a special kind of cryptography to ensure that all transactions remain 100% untraceable. In an increasingly transparent world, you can understand why something like Monero can become so desirable.
Monero is based on a cryptographic protocol that focuses on privacy called ring signatures. The most important characteristic of the crypto coin is the fact that transactions cannot be linked or traced.
The crypto coin does not have a predetermined block size. This creates flexibility in data management and scalability. Monero's architecture requires much more cryptography and transaction data than Bitcoin, for example.
It also has selective transparency that allows users to reveal certain transactions if desired (For example, to prove the transaction).
Monero uses ring signatures, ring confidential transactions, and stealth addresses to obfuscate protocol-level transactions to protect both senders and recipients from eavesdroppers.
3. Aave
Aave (AAVE) is a DeFi (Decentralized Finance) protocol that allows people to borrow and lend crypto. Such a protocol is often characterized by public smart contracts built on the Ethereum network.
The Aave platform currently has over 20 cryptocurrencies, each with its own liquidity pool. These liquidity pools are the pillars of the platform. You can see it as a jar into which lenders deposit crypto, so that borrowers can withdraw crypto from it. The borrowers offer collateral to give the lender the assurance that the investment will be recouped. This collateral is also offered in the form of cryptocurrencies. As usual with loans, the borrower pays interest to the lender. The borrower can choose between a fixed or a variable interest rate, with the fixed interest usually being higher.
It is also possible to take out a “flash loan” with Aave. A loan where no collateral is required and the amount is repaid with 0.09% interest within the same Ethereum block. Such a block takes an average of 13 seconds. If it is not repaid, the entire transaction is reversed, so that Aave and the lenders are not at risk.
4. Thorchain
THORChain is an independent crypto network that aims to enable the exchange of assets across different block chain networks in a non-preservable way. The protocol features a cross-chain bridge system (known as the Bifröst protocol) to connect different chains together. THORChain also uses a modified version of Bancor's “smart tokens”, which it calls Continuous Liquidity Pools (CLPs), to facilitate the exchange of assets.
The main difference is that CLPs reward users for their contribution to the liquidity in each pool. THORChain has a native token, RUNE, that owners can use to join the network or add to a liquidity pool.
The THORChain project was founded in 2018 on the premise that using centralized exchanges to transfer crypto assets between different blockchains did not work well. Non-central exchanges, also known as decentralized exchanges (DEXs), were the long-term solution.
That's why the THORChain team wanted to build an independent blockchain that could bridge to external networks and facilitate cross-chain transfers, and function in the same way as a DEX.
5. VeChain
Founded in Singapore in 2015 by Sunny Lu, VeChain (VET) is the leading blockchain platform when it comes to information and products. VeChain is a BaaS company, which stands for "Blockchain as a Service". The goal of this platform is to create a distributed business ecosystem in which trust for products is fully integrated.
VeChain created a practical solution by using blockchain technology to ensure that all products are registered on the VeChain blockchain. Products are also equipped with smart chips. These chips can monitor the entire production process.
Consider, for example, the validity, following the routes traveled and the environmental changes that can influence the product (such as temperature changes when it comes to the food industry). In this way, VeChain's blockchain application makes it possible to check the authenticity of products.
This way the customer can see exactly where the product is manufactured and which parts the product consists of. This means you no longer have to doubt the authenticity of the product, the value of the product and the origin of the product. This so-called end-to-end product control ensures a higher validity of the buying and selling of products on the internet (The Internet of Things, IoT for short).
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- If you found this post informative, please read my DeFi (Decentralized Finance) series. I've covered a wide plethora of subjects and linked all posts to make it more convenient for you to read.
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