- The feature which has seen SOL grow so considerably is its proof-of-history (PoH) consensus developed by Anatoly Yakovenko
- One of Cardano’s attractive features is that it uses a proof-of-stake consensus which requires miners to simply own the coin in order to be able to mine it
- In a space where speed is increasingly valued – and where Ethereum’s current model is faltering - Avalanche is blazingly fast. Moreover it boasts low cost, and – due to its proof-of-stake protocol - green
However, it hasn’t been all smooth sailing for the smart contract-driven blockchain The delays surrounding Ethereum’s upgrade have forced investors and users to search for similar alternatives with faster transaction times and cheaper fees.
Ethereum 2.0 is now slated for completion at the end of 2022, at the earliest.
Until then, emerging Altcoins will likely continue to funnel customers who might otherwise wish to join the Ethereum network, if not for its hinderances, which are largely due to two factors: the ageing technology and the high number of users already on the platform.
Meanwhile, looming altcoins threaten to supersede the second largest cryptocurrency by market capitalisation.
Here are five altcoins to watch out for.
Solana’s has had an outstanding year, having only been affected slightly by the mid year crash which saw some cryptocurrencies lose more than half their value.
Solana, however, got off comparatively lightly and since the reemergence of the crypto market in August, the value of SOL has gone through the roof.
On August 1, 2021, the price of SOL was valued at US$35.50. On September 9, that price had skyrocketed to US$210 – an astonishing growth of around 600 percent.
Since then, it’s floundered somewhat and as of September 24, its value is US$146.46.
The feature which has seen SOL grow so considerably is its proof-of-history (PoH) consensus developed by Anatoly Yakovenko. This concept allows for greater scalability of the protocol and provides an alternative to Ethereum’s network as one with greater usability.
Solana is currently ranked seventh according to CoinMarketCap.
One of the features which crypto investors have increasingly recognised this year is the mining methods of various digital currencies.
Bitcoin made headlines earlier this year when it was revealed that the mining methods – known as proof-of-work (PoW) – use excessive amounts of electronics, thus causing concern regarding its reported negative environmental impact.
Recently, it was reported that Bitcoin mining uses 0.5 per cent of the world annual electricity usage.
Alarming as that is, it’s caused investors to source digital currencies whose mining practices are more environmentally friendly.
This is likely one reason Cardano (ADA) has gone from strength to strength in 2021. Like more and more cryptos, Cardano uses a proof-of-stake consensus which requires miners to simply own the coin in order to be able to mine it. This is in contrast to PoW which demands enormous computer processing power.
Cardano is ranked third according to CoinMarketCap.
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Of all the emerging altcoins, Polkadot (DOT) perhaps has the most advanced and ambitious technology.
Polkadot is what’s called a sharded multichain network. This means it can process multiple transactions on several chains in parallel. These are called “parachains” and parallel processing technology power which improves scalability.
Polkadot is ranked eighth according to CoinMarketCap.
This coins namesake pretty much describes its year – or maybe the opposite since avalanches crash down.
Avalanche (AVAX) has seen the most growth out of all the coins on this list.
Avalanche is the fastest smart contracts platform in the blockchain industry. In a space where speed is increasingly valued – and where Ethereum’s current model is faltering - Avalanche is blazingly fast. Moreover it boasts low cost, and – due to its proof-of-stake protocol - green.
It’s this trifecta of qualities which are increasingly valued as the crypto world becomes more in touch with what creates value on a blockchain.
Avalanche is currently valued at US$73.93 having started the year valued at US$3.70 – a YTD growth rate of an extraordinary near 20,000 per cent.
Avalanche is ranked eleventh according to CoinMarketCap.
Cosmos (ATOM) is described as Blockchain 3.0 and aims to address levels of fragmentation seen in blockchain networks. What does this mean? Well, there are thousand of blockchains existing in the crypto space, but few of them can communicate with each other.
Furthermore – and this is a common theme with all the altcoins mentioned in this article - Cosmos’s native token (ATOM) isn’t mined. Rather it’s staked, again providing an environmentally healthy alternative cryptocurrency.
Cosmos is ranked twentieth according to CoinMarketCap.
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The Altcoin Wars
It wasn’t long ago that Ethereum had the goods on every other altcoin on the market. But just like everything and anything in the crazy world of crypto, nothing is forever and rapid change is as certain as the rising sun.
There’s no doubt that Ethereum’s developers will be sweating whilst watching these emerging altcoins eat into their customer and potential future customer base.
For Ethereum, it seems it’s 2.0 upgrade can’t come quick enough. Until then, it’s entirely possible we could see a new reigning altcoin.