5 cryptocurrencies that you’ll keep hearing of in 2022
By Joy Dumasia
Cryptocurrency (or “crypto”) is a digital currency used to buy goods and services but uses an online ledger with solid cryptography to secure online transactions. Much interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.
Cryptocurrencies work using a technology called the blockchain. Blockchain is a decentralized technology spread across many computers that manage and records transactions. A blockchain is a public digital ledger of transactions that records information to make it difficult to hack or alter. The technology allows a secure way for individuals to deal directly with each other, without an intermediary like a government, bank or another third party.
Cryptocurrencies have become one of the best investments of the 21st century. It has recently aroused investors’ attention because they see a leverage point in investing in various coins present in this market. On the other hand, this market is characterized by volatility, so price predictions are not always easy and specific for cryptocurrencies.
The following are 5 cryptocurrencies that you’ll hear more of during the year ahead:
Bitcoin is the first and the most globally known cryptocurrency. Any government or third party does not govern Bitcoin, and it supports peer-to-peer transactions through decentralized protocols. Due to its liquidity, Bitcoin is a good choice of cryptocurrency to buy and is also in high demand. In the upcoming years, it is expected that Bitcoin will reach even a higher mass adoption, and as the need for Bitcoin increases, its price may rise as well.
The Ethereum blockchain technology is the second generation of blockchain technology. Ethereum is a platform built on smart contracts, and it enables applications to run autonomously without human involvement. The cryptocurrency of the Ethereum platform is called ‘Ether’, and this token is used for trades on cryptocurrency exchanges. Blockchain-based software platforms such as Ethereum are unique because their code cannot easily be altered or hacked.
Solana is a programmable blockchain that seeks to facilitate high-speed transactions. To ensure all of the requirements are met, Solana uses smart contracts. Proof-of-history is the technical term for Solana’s network, and the token is used to pay transaction fees. Solana is considered a direct competitor to the Ethereum network through more profound analysis.
Cardano is a blockchain platform created through research and scientific methodology, making it unique. On the technical side, it is developed by the programming language called Haskell and is built on a consensus protocol called Ouroboros proof-of-stake. Cardano can secure the network, validate transactions, and earn newly minted ADA.
Polkadot is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset, thus making a wide range of blockchains interoperable. This interoperability seeks to establish a wholly decentralized and private web controlled by its users while simplifying the creation of new applications, organizations, and services.
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