These 5 Projects have Great Potential
The cryptocurrency market is improving and its time to get a bit more optimistic. What about the projects? Which projects have medium to long term potential and why? Lets take a look
Of course, Bitcoin is the mother of all cryptocurrencies. It is currently ruling the market with a dominance of around 60%. This means that all bitcoins have 1.5 times more value than all other combined cryptocurrencies. Bitcoin has been proving for over 10 years that the system works. Thus, the cryptocurrency has a relatively high level of trust.
Now, it is working on second layer solutions, such as the Liquidnetwork (a sidechain) and Lightning (an Offchainprotocol). A big plus of Bitcoin is its popularity. Most newcomers will buy Bitcoin. This does not only apply to private investors. There are several companies that will soon enable the entry of institutional investors. The first product offered? Bitcoin.
- High Confidence, Safest Proof of Work Blockchain.
- Highest liquidity. Bitcoin is available on every crypto exchange.
- Institutions will be the first to take a closer look at Bitcoin.
- Strong community and developers
- The Mainchain is relatively slow
- High energy consumption
- Limited usability because (still?) No smart contracts
Ethereum is the second project after bitcoin which is very popular. Ethereum has introduced the concept of Smart Contracts. Anyone can write programs and send them to the blockchain. With the help of transactions, you can access the functions of these programs and change the status of the blockchain. In this way it is possible, among other things, to easily and quickly generate the most diverse tokens on the blockchain. It is driven by the consensus mechanism Proof of Work.
Ethereum includes a large strong developer community. Joseph Lubin, one of the co-founders, recently said that new scaling solutions will be available in 18-24 months. By the end of June, the code for the Proof of Stake Protocol is supposed to be available to Casper.
- High functionality thanks to Smart Contracts
- Strong community
- Extensive ecosystem as many projects depends on it.
- Poor scalability
- Relatively high transaction costs
- High energy consumption
The blockchain designed by Daniel Larimer is based on Delegated Proof of Stake. Unlike proof of work, decision-making power no longer comes from the computing power of computers, but from the token holders. At the moment the number of block producers is set to 21. Over 500 (number increasing) are available on call and can be selected at any time. In addition, there is an on-chain referendum system. Each token holder can make suggestions and vote for ...Read full story on CryptoTicker - Your Key to Crypto, Blockchain and Futurism