There is a lot of buzz on social media
about the potential for good altcoin investments in 2022. So which altcoins are
worth researching? There are thousands
of cryptocurrencies available for trading, and new ones are being created
every day. This is the best time to invest
in altcoins considering their growth and how much they have evolved over
the years. If you're looking for the next big altcoin to invest in, then look
no further. Here is a list of some great options for your consideration.
Polkadot is a blockchain protocol that
seeks to address the limitations of current blockchain systems. The project
allows for interoperability between different blockchains while facilitating an
ecosystem where users can build their customized blockchains.
While other projects like Ethereum 2.0
promise interoperability, the Polkadot team is one of the few that has
delivered on this idea in terms of actual implementation and potential for
scalability. The ecosystem consists of three major parts: relay chain,
parachains, and parathreads. This system creates a multi-chain environment
where any connected blockchain can scale to meet demand without compromising
security or decentralization.
Second on this list is Polygon, a scaling
solution for Ethereum that utilizes layer-two solutions like Plasma and
proof-of-stake side chains. It enables faster and cheaper transactions by
moving them off the main chain onto side chains for processing before being
settled back on the main chain. Polygon announced that it had completed audit
procedures for its new token, MATIC, soon listed on Binance.
Polygon is arguably one of the most
exciting altcoins at the moment as it enables developers to create and operate
decentralized applications at scale on the Ethereum network. The project
features various use cases ranging from gaming to financial applications and
has been growing steadily since its launch in 2017.
Cosmos is the most popular proof-of-stake
project based on market capitalization and has a dedicated community.
To understand Cosmos, you will need to
understand more about Tendermint, an open-source technology that can build
blockchain applications. Tendermint enforces consensus between validators.
These validators are chosen from a set of elected nodes. If the validators do
not agree, they are punished by losing their deposit.
Cosmos allows different blockchains to
communicate with each other and exchange information. These networks have
sovereign control over their data and each selects the validators for the network.
Fantom is a Directed Acyclic Graph
(DAG)-based platform that aims to provide real-time payment capabilities with
extremely low fees and high scalability.
The Fantom platform uses a protocol called
Lachesis, which helps in fast verification of transactions and parallel
processing of them through a consensus algorithm called voting power mechanism
(VPM). The consensus protocol used by Fantom is scalable up to 10,000
transactions per second on a single node with 50% fault tolerance.