- The Ethereum blockchain is valuable when you consider its a platform for numerous other cryptocurrencies, as well as for the execution of decentralised smart contracts
- Cardano blockchain is beneficial for agricultural companies who use it to track fresh produce
- Filecoin is a decentralised storage system, whose goal is to store humanity’s most important information
There’s been a shift in the crypto market this year. While Bitcoin has continued as the number one crypto by market cap, its dominance has decreased as investors move towards cryptocurrencies that offer useful services.
Investors are becoming wiser after getting aware of the range of digital currencies and their impact on the market.
Bitcoin’s mining practices came under fire earlier this year when it was revealed that the high amount of energy consumption required to mine Bitcoin is environmentally unfriendly.
This has prompted investors to search for coins that don’t use the high amount of electricity needed for proof-of-work consensus mining.
Here are five cryptos offering high utility heading into 2022.
Ethereum is the second-largest crypto in terms of market cap and has closed the gap on Bitcoin considerably this year.
Ethereum is a decentralised open-source blockchain system that features its native cryptocurrency, Ether.
The Ethereum blockchain is even more valuable when you consider its a platform for numerous other cryptocurrencies, as well as for the execution of decentralised smart contracts.
Combine this with the fact that it also hosts a vast majority of non fungible tokens (NFTs), which have exploded this year, and its not hard to see why this platform is fast gaining traction.
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Solana is a unique platform that uses a mining protocol called proof-of-history (PoH), which sets it apart from other cryptos that use proof-of-work (PoW) and proof-of-stake (PoS). PoH mining protocol allows Solana to facilitate faster and cheaper transaction times than its counterparts, like Ethereum.
Cardano is a proof-of-stake blockchain platform that allows decentralised apps and smart contracts to be developed with modularity.
Agricultural companies use the Cardano blockchain to track fresh produce.
In the Covid era, where supply chains have become seriously affected, this blockchain’s arrival is timely as it reduces time and cost in the agricultural industry.
Polkadot provides a unique service known as “sharding”, which means it allows the cross-chain transfer of any data or asset types, not just tokens, making blockchains interoperable with each other.
This essentially means it provides its own decentralised and private web controlled by the users instead of big corporations like Facebook and Google.
The advent of blockchain technology, which is central to cryptocurrency, provides many benefits, one of which is data storage.
Filecoin is a decentralised storage system whose goal is to store humanity’s most important information.
Filecoin’s service differs from cloud storage companies like Amazon Web Services, which are prone to the pitfalls of centralisation.
Filecoin, on the other hand, offers higher protection for users as it means the user is the custodian of the data.
The Future of Blockchain
As we close out this year, the nature of the internet is fast evolving, moving to a more decentralised and democratised version. As such, we’re going to see these blockchains and others play a central part in that evolution, making them prime targets for investment in 2022.