The cryptocurrency market has had a rough year in 2022, here are my favourite cryptocurrency projects I am going to increase my holdings.
Polkadot – DOT
Polkadot is a blockchain platform that aims to enable the creation of decentralized applications (dApps) and decentralized autonomous organizations (DAOs) that can operate on a variety of different blockchain networks. It is designed to be highly scalable, flexible, and secure, and to support interoperability between different blockchain networks. It uses a unique consensus mechanism called “proof of stake,” in which validators on the network are chosen to create new blocks and validate transactions based on the number of tokens (called “DOTs”) they hold. This allows for faster transaction speeds and lower fees than proof of work systems like Bitcoin.
Polkadot also features a “parachain” architecture, in which multiple blockchains (called “parachains”) can operate on the network concurrently and communicate with each other through “bridges.” This enables interoperability between different blockchains, allowing for the creation of decentralized applications and organizations that can operate across multiple networks.
These are the 5 reasons why I Polkadot consider as an interesting crypto project:
- Parachain architecture: The parachain architecture of Polkadot allows for the concurrent operation of multiple blockchains (called “parachains”) on the network, enabling the creation of decentralized applications and organizations that can operate across multiple networks.
- Scalability: Polkadot is designed to be highly scalable, with the ability to process thousands of transactions per second. This makes it well-suited for a wide range of decentralized applications, including those with high transaction volume.
- Interoperability: One of the key features of Polkadot is its ability to enable interoperability between different blockchain networks. This allows for the creation of decentralized applications and organizations that can operate across multiple networks and harness the strengths of each.
- Proof of stake consensus: Polkadot uses a proof of stake consensus mechanism, which allows for faster transaction speeds and lower fees compared to proof of work systems like Bitcoin.
- Strong development community: Polkadot has a strong and active development community, with a number of projects and teams working on building applications and tools on the platform. This helps to ensure that the platform continues to evolve and improve over time.
It is easy to stake DOT via kraken, or any other exchange. The Talisman website just released an easy to use interface to stake DOTs, without paying the overheads of a CEX. The staking rewards are ca. 15%.
Polygon Network – MATIC
Polygon Network (MATIC) is another decentralized, open-source cryptocurrency and smart contract platform that is focused on providing fast and scalable blockchain solutions. It was founded in 2017 by Jaynti Kanani and Anurag Arjun, and is based on the Ethereum blockchain.
Polygon Network is designed to be a layer 2 scaling solution that allows for faster and cheaper transactions on the Ethereum blockchain. It uses a unique sidechain-based approach that allows for off-chain transactions that are later settled on the main Ethereum blockchain. This allows for faster transaction speeds and lower fees, without sacrificing the security and decentralization of the Ethereum blockchain. One of the key features of Polygon Network is its focus on developer experience. It has a number of tools and resources to help developers build and deploy decentralized applications (DApps) on the Matic Network, and it supports a wide range of programming languages, including Solidity, JavaScript, and Python.
Polygon Network has a native cryptocurrency, called MATIC, which is used to pay for transaction fees and to secure the network through a process called staking. Staking allows holders of MATIC to earn rewards for participating in the security and validation of the Polygon Network. Staking MATIC is easy over the matic wallet or at any exchange, like kraken. The native staking is on the ethereum network, tough if you are not familiar with staking, it is easier to use a CEX. The staking rewards are up to 14 %.
Ripple – XRP
Ripple is a digital currency and payment network that operates on a distributed ledger called the Ripple Protocol Consensus Algorithm (RPCA). It was created in 2012 by a company of the same name, and released in 2013 as a real-time gross settlement system (RTGS), currency exchange, and remittance network. Ripple is designed to facilitate fast and cheap transactions and has partnerships with a number of financial institutions and payment providers, including Santander, American Express, and MoneyGram.
One of the key features of Ripple is its speed. Transactions on the network are verified by a network of independent servers and can be completed in a matter of seconds. This makes it an attractive option for users who need to send or receive large amounts of money quickly. In addition, Ripple has low fees compared to other payment networks, which makes it an economical choice for users who need to send or receive large amounts of money. Ripple is based on a distributed ledger technology called blockchain, which is a decentralized and distributed ledger that records transactions in a secure and transparent way. Unlike Bitcoin, which is based on a proof-of-work (PoW) consensus algorithm, Ripple uses a consensus algorithm called the Ripple Protocol Consensus Algorithm (RPCA). The RPCA allows transactions to be validated by a network of independent servers, rather than being verified by miners who solve complex mathematical problems, as is the case with PoW. This allows for faster transaction speeds and lower fees on the Ripple network.
One of the main use cases for Ripple is as a means of payment for financial institutions and payment providers. By using Ripple, these institutions can send and receive money and facilitate currency exchange in a fast and cheap way. This is especially useful for cross-border payments, which can be slow and expensive using traditional financial systems. In addition to its use as a payment network, Ripple has also attracted interest from investors and has partnerships with a number of major venture capital firms, including Andreessen Horowitz and Google Ventures. The company has also raised millions of dollars in funding through initial coin offerings (ICOs).
Despite its popularity and partnerships, Ripple has faced some controversy and criticism. Some have criticized the company for its centralized nature, as it is controlled by a single entity, unlike Bitcoin and other decentralized cryptocurrencies. In addition, Ripple has faced regulatory scrutiny in some jurisdictions, with some arguing that it should be regulated as a security rather than as a currency.
Loopring – LRC
Loopring (LRC) is a decentralized, open-source cryptocurrency and smart contract platform that is focused on providing low-cost and efficient decentralized exchange (DEX) services. It was founded in 2017 by Daniel Wang, a former senior software engineer at Google.
Loopring is based on a decentralized exchange protocol that allows users to trade cryptocurrencies and other digital assets in a secure and transparent way. It uses a unique off-chain order matching model that allows for high-speed, low-cost trades without the need for a centralized exchange. One of the key features of Loopring is its focus on security and scalability. It uses a number of security measures to protect user assets, including multi-sig wallets and smart contract-based escrow. In addition, it is designed to be highly scalable, with the ability to process thousands of transactions per second.
Loopring has a native cryptocurrency, called LRC, which is used to pay for transaction fees and to secure the network through a process called staking. Staking allows holders of LRC to earn rewards for participating in the security and validation of the Loopring network.
Cardano – ADA
Cardano (ADA) is a decentralized, open-source cryptocurrency that was launched in 2017 by Charles Hoskinson, co-founder of Ethereum. It is named after Ada Lovelace, a mathematician and writer who is considered to be the first computer programmer. This project is also built on a proof-of-stake (PoS) consensus algorithm and is designed to be a more secure and scalable alternative to other cryptocurrencies like Bitcoin. It uses a unique multi-layer architecture that separates the network’s accounting layer from its computation layer, which allows for more flexibility and upgradability.
One of the key features of Cardano is its emphasis on sustainability and social impact. The project’s development is guided by a non-profit organization called the Cardano Foundation, which is committed to promoting the use of blockchain technology for social and environmental good. Cardano has a strong focus on research and development, and its development team includes a number of academic researchers and scientists. The project has also attracted a significant amount of investment and has partnerships with a number of organizations, including the government of Ethiopia, which is using Cardano’s blockchain technology to track agricultural supply chains.
To stake Cardano on a CEX like kraken is the easiest way. The staking rewards are 3-6%.