These cryptocurrencies are solid projects with long-term potential.
If you don’t understand the basics of blockchain and cryptocurrency, I recommend that you first read my previous article on crypto by clicking on here!
Cryptocurrency is an emerging asset class that relies on blockchain technology. There are hundreds of cryptocurrencies available, so it can be difficult for investors to decide which one to invest in. If you want to invest in crypto, I have listed some of the most promising projects below.
Bitcoin is the largest cryptocurrency by market capitalization and uses a proof-of-work consensus protocol. It is fully decentralized which means anyone can transact and mine Bitcoins. There is a maximum supply of 21 million Bitcoins that can be mined, which is why people consider Bitcoin digital gold.
Transaction costs on a proof-of-work blockchain are higher, but the blockchain is considered more secure than other consensus protocols like proof-of-stake. The downside of proof of work is that it consumes a lot of electricity to validate transactions and mine new Bitcoins. Bitcoins are mined using graphical processing units, which makes proof-of-work less scalable than a proof-of-stake consensus protocol.
Ethereum is the second largest cryptocurrency by market capitalization and also runs on a proof-of-work algorithm. It plans to switch to using proof-of-stake as a consensus protocol, which means that hardware will no longer be able to mine Ether tokens. The shift to proof-of-stake will make the Ethereum blockchain less decentralized but more efficient.
Transaction fees or gas fees are high on the Ethereum blockchain. Transaction fees will decrease once the switch to ETH 2.0 is complete. The question is when will the ETH 2.0 upgrades take place? Coinbase allows its users to stake Ethereum 2.0, but they cannot withdraw it until the transition has taken place.
The Ethereum blockchain is also the most popular in the NFT space. Other blockchains also have NFTs, but not as much as Ethereum. NFTs are keeping many more people interested in the token as NFTs have become increasingly popular.
The Solana blockchain uses a proof-of-history consensus protocol, which processes transactions faster than a proof-of-stake blockchain. It is also much cheaper to transact with Solana, as each transaction costs less than $0.01.
Proof of history is considered less secure than proof of work, but more effective. Solana can support up to 65,000 transactions per second, while Ethereum can only support 30 per second. If the transition to ETH 2.0 does not increase its transaction speed and decrease gas fees, crypto investors may turn to other tokens to transact with, such as Solana.
The VeChainThor blockchain consists of two tokens: VET and VTHO. Transactions on the blockchain will use VET and VTHO will power the transaction. The price of VTHO is equal to the cost of performing a transaction on the VeChain blockchain. This system is more efficient than Ethereum because the price for transacting on VeChain does not need to be estimated. If you want to transact on the Ethereum blockchain and the gas fee is misestimated, the transaction will fail.
The VeChain blockchain is full of use cases and is destined to be massively adopted by companies. The primary use case is to use blockchain technology to disrupt the supply chain industry. Supply chain data is currently disorganized in the hands of multiple stakeholders, affecting the flow of information. The VeChain blockchain will provide a complete view of supply chain data for all stakeholders and provide more transparency.
An example of a use case for VeChain is in the wine industry. VeChain produces RFID tags assigned to wine bottles to track quality, age, authenticity, temperature, etc. Additionally, VeChain has partnered with major companies such as BMW and Walmart China. These partnerships prove that there is significant demand for blockchain technology in the supply chain industry.