The year 2021 has been one of the best in the history of the crypto market. The global crypto market cap surpassed $3 trillion for the first time, and most cryptocurrencies set new highs. At this time, Bitcoin’s dominance is about 40%, and the Global Crypto Market cap stands just over $2.2T. Our research shows that 2022 can be one of the hottest years for the crypto market. After analysing the best coins to buy in 2022, we will introduce the top 10 promising coins in 2022.
The Ethereum protocol, which debuted in 2015, has been a huge success. However, the Ethereum community has always anticipated that a few critical enhancements will be required to achieve Ethereum's potential. Because of the high demand, transaction costs have risen, making decentralisedEthereum prohibitively expensive for the users. The amount of disk space required to execute an Ethereum client is rapidly increasing. And Ethereum's underlying Proof-of-Work consensus method, which makes it secure and decentralised, has a significant environmental impact.
🔅 Eth2 refers to a set of upgrades that address these and other issues. 'Serenity' was the initial name for this group of enhancements, and they've been a hot topic of research and development since 2014.
Eth2 refers to a series of updates that will improve Ethereum's security, scalability, and sustainability. Multiple teams from around the Ethereum ecosystem are working on these upgrades. Ethereum must be more scalable, safe, and sustainable to move into the mainstream and benefit all mankind. All of this will be possible while preserving Ethereum's core value of decentralisation.
It means there’s no on-switch for Eth2, and improvements will ship incrementally over time. Ethereum overcame these deficiencies by introducing a processing technique known as sharding, replacing Ethereum Virtual Machine (EVM) to eWASM, and abandoning Proof-of-Work and transitioning blockchain to a more efficient, Proof-of-Stake system.
The first phase of Ethereum 2.0 officially launched on December 1, 2020. However, due to the two remaining phases, the full release is expected in 2022. Ethereum 2.0 is currently live on the testnet, with holders already staking nearly 8 million ETH. The Merge is expected to happen before June 2022, according to developers Tim Beiko and James Hancockm's latest comments. The bomb could be delayed much more if it is not ready by then. However, the next comments confirmed that a complete transition to proof-of-stake will happen by mid-Q2 2022.
Helium (HNT) is a blockchain-based decentralised network for the Internet of Things (IoT) devices. The Helium mainnet, which was launched in July 2019, lets low-powered wireless devices communicate with one another and send data through its network of nodes. Hotspots, which are a combination of a wireless gateway and a blockchain mining device, are used as nodes. Users who run nodes earn HNT, Helium's native cryptocurrency token, as a result of their efforts.
Helium's mission since its inception in 2013 has been to prepare IoT connectivity for the future by detecting flaws in existing infrastructure. Helium intends to increase wireless Internet of Things (IoT) device communication capabilities. In 2013, IoT infrastructure was still in its infancy, but developers sought to add decentralisation to their offering. Therefore official material referred to it as "The People's Network."
Its primary target audience will be device owners and IoT enthusiasts, with financial incentives providing additional outreach opportunities. Proof-of-Coverage is a new consensus technique based on the HoneyBadger BFT protocol that allows network nodes to establish consensus while connection quality is significantly variable.
Helium is a cryptocurrency that has a bright future ahead of it. Riding the crypto wave, Helium will govern the digital kingdom as a profitable token, and as such, it will have a lengthy reign on a crypto exchange as a means of investment. The Helium Community voted to pass HIP 27 in September 2021, making the firm the world's first consumer-owned 5G network. As The People's Network became available for mobile devices, it became even more accessible to a wider audience.
Polkadot is an open-source sharded multichain protocol that secures and connects a network of specialised blockchains, allowing for the cross-chain transfer of any data or asset type, not only tokens, thereby making blockchains interoperable. Polkadot was created to serve as the backbone for Web3, a decentralised internet of blockchains. As a meta protocol, Polkadot can also update its codebase autonomously and forklessly via on-chain governance, according to the demands of its token holder community.
Polkadot is a platform that enables the construction of new applications, institutions, and services on a decentralised web governed by its users. Through the Polkadot Relay Chain, the Polkadot protocol can connect public and private chains, oracles, permissionless networks and future technologies, allowing these independent blockchains to share information and transactions securely.
The network uses an NPoS (nominated proof-of-stake) mechanism with validators and nominators. Nominators back validators with their tokens. These staked tokens maximise chain security by making it prohibitively expensive to misbehave.
Based on Polkadot official website, the future upgrade will be XCMP (Cross-Chain Message Passing), and the debut of parathreads are currently in development for Polkadot. Once development, testing, benchmarking, and auditing are completed, Polkadot's on-chain governance community can enable these and any further improvements.
Terra is a blockchain protocol that powers price-stable global payments systems using fiat-pegged stablecoins. According to its white paper, Terra combines the price stability and adoption of fiat currencies with the censorship-resistance of Bitcoin (BTC) to provide quick and affordable settlements. The LUNA token is used to keep the price of the protocol's stablecoins stable. Holders of LUNA can also submit and vote on governance proposals, making it a governance token.
Terra claims that its usage of fiat-pegged stablecoins distinguishes it from the competition by combining the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currency. It maintains its one-to-one peg thanks to an algorithm that adjusts stablecoin supply in response to demand. It accomplishes this by motivating LUNA holders to swap LUNA and stablecoins at profitable exchange rates as needed to extend or contract the stablecoin supply to meet demand.
Terra has partnered with a number of payment platforms, primarily in the Asia-Pacific area. Terra is also backed by the Terra Alliance, a group of businesses and platforms pushing for Terra's acceptance. In February 2019, the company reported that the alliance included e-commerce platforms from ten different nations, with a combined user base of 45 million people and a total merchandise value of $25 billion.
Perpetual Protocol (Perpetual Protocol) is a Decentralised Exchange (DEX) for futures on Ethereum and xDai. Traders can trade long or short on a growing number of assets, including BTC, ETH, DOT, SNX, YFI, and others, with up to 10X leverage. Trading is non-custodial, which means that traders keep ownership of their assets at all times, and it takes place on-chain. Perpetual Protocol makes use of a virtual automated market maker (vAMM) to provide on-chain liquidity and predictable pricing based on consistent product curves. Perpetual Protocol's vAMMs are also designed to be market-neutral and fully collateralised.
Perpetual Protocol's declared goal is to build the world’s best, most accessible and secure decentralised derivatives trading platform. The company embraces the "DeFi money lego" mentality by constructing DeFi projects and making them build on Perpetual Protocol. Perpetual Protocol intends to boost other chains and establish a perpetual contracts trading platform that anybody can use. Users must be able to trade with good liquidity and low slippage to accomplish this. The community runs the protocol, and there is a bounty scheme for developers who discover bugs in smart contracts. Perpetual Protocol employs Chainlink as an oracle for funding rate computations. Still, it lacks an on-chain oracle as a pricing engine, preventing the use of flash loans to manipulate the price of underlying assets while profiting from Perpetual in the same transaction.
Cosmos introduces itself as a project that addresses some of the blockchain industry's "hardest difficulties." By providing an ecosystem of connected blockchains, it hopes to provide an antidote to "slow, expensive, unscalable, and environmentally destructive" Proof-of-Work algorithms like those used by Bitcoin. A modular framework that demystifies decentralised apps is one of the project's other goals, which includes making blockchain technology less complex and challenging for developers. Additionally, an Interblockchain Communication protocol facilitates communication between blockchain networks.
The degrees of fragmentation found in blockchain networks are a significant cause of worry for some in the crypto sector. There are hundreds, but only a few are capable of communicating with one another. By making this feasible, Cosmos hopes to turn this on its head. Cosmos is called "Blockchain 3.0", and one of its main goals is to streamline using its infrastructure. The Cosmos software development kit emphasises modularity to achieve this goal, and it simplifies putting together a network using pre-existing code. In the long run, it is believed that complicated applications would become easier to build as a result of this.
Another objective is scalability, which means that far more transactions may be handled per second than on older blockchains like Bitcoin and Ethereum. If blockchains become widely adopted, they must be able to handle demand as well as conventional payment processing companies or websites.
Solana is an open-source project that uses the permissionless aspect of blockchain technology to create Decentralised Financial (DeFi) solutions. The Solana protocol intends to facilitate the construction of Decentralised Apps (DApps). It plans to increase scalability by combining a Proof-of-History (PoH) consensus with the blockchain's underlying Proof-of-Stake (PoS) consensus. This idea provides for higher protocol scalability, which improves usability.
Solana enjoys interest from small-time traders and institutional traders alike because of its revolutionary hybrid consensus mechanism. The Solana Foundation is particularly interested in making decentralised money more widely available. Solana is well-known for the blockchain's lightning-fast processing speeds in the cryptocurrency community. Solana’s hybrid protocol provides drastically reduced validation times for both transaction and smart contract execution. Customers will not be surprised by higher fees and taxes, which is one of Solana's primary promises. The protocol has been developed to have low transaction costs while still ensuring scalability and speed of processing.
Rarible is an NFT marketplace and issuance platform for creators using the RARI token to empower users who actively interact with the protocol. On the Rarible platform, users can simply create Non-Fungible Tokens (NFTs) for one-of-a-kind digital things such as artworks, games, and more. On the Rarible marketplace, anyone can create and post NFTs. The RARI token is a key component of the platform since it is used to reward active users and participate in protocol governance.
Rarible aims to use blockchain technology to become more than just a marketplace for digital items and art. The platform is used to manufacture or "mint" NFTs using a very easy approach that even persons without prior knowledge of NFTs may use. It enables artists and creatives to develop and sell digital products with no barriers to entry while maintaining the security provided by blockchain technology.
Rarible plans to move to a completely Decentralised Autonomous Organisation (DAO) structure in the future. Although the entire NFT ecosystem is still in its infancy, Rarible has already said that a portion of its earnings will be used to support customers' first mint transaction (NFT creation transaction), in addition to other business needs.
Decentraland (MANA) is a virtual reality platform based on the Ethereum blockchain that allows users to create, experience, and monetise content and apps. Users acquire plots of land in this virtual environment, which they may then navigate, develop on, and monetise. Decentraland is a platform for content creators, enterprises, and individuals seeking a new artistic medium, source of entertainment or business opportunity. The Decentraland gameworld, AKA the "Metaverse," is divided into 90,601 unique LAND parcels, each of which is represented by an ERC-721 Non-Fungible Token. Though LAND owners have complete freedom to develop their plot into whatever they want, much of the Metaverse is split into various districts, each with its own size and concept.
Decentraland is also one of a growing number of projects that make governance decisions using a Decentralised Autonomous Organisation (DAO) structure. As a result, MANA toker holders can control the Decentraland world through proposing and voting on policy changes, the details of upcoming LAND auctions, and the types of content permitted in the Metaverse. Ethereum is protected against assaults by a huge decentralised network of miners, who collaborate with thousands of nodes to ensure the Ethereum blockchain - and hence the MANA tokens - is secure.
THORCHain is a decentralised liquidity protocol that lets users effortlessly swap Bitcoin assets across many networks while maintaining complete custody of their assets. Users can swap one asset for another in a permissionless context with THORChain, eliminating the requirement for order books to source liquidity. Instead, market prices are maintained by the asset ratio in a pool.
THORChain was funded through an initial DEX offering (IDO) that began in July 2019 on the Binance DEX. Its mainnet first went live in January 2021. However, a multi-chain upgrade is planned. THORChain employs a proprietary approach to help mitigate "impermanent losses," or the often transient losses that a liquidity provider may experience when contributing to liquidity pools. It accomplishes this by charging a slip-based fee to ensure that liquidity is kept where it is needed.
THORChain effortlessly facilitates cross-chain token exchanges by combining several unique technologies, including on-way state pegs, a state machine, the Bifröst Signer Module, and a TSS protocol. It is all hidden behind the scenes, allowing even unskilled traders to use the platform. The Tendermint consensus mechanism is used to power THORChain, which is constructed using the Cosmos SDK. A unique BFT proof-of-stake (PoS) method sees many validators work together to propose and finalise blocks of transactions and keep the network safe from attacks.
The coming year will be full of surprises as public interest in the crypto business and its fascinating side stories will continue to grow. As a result, it's not unreasonable to expect more significant growth in this promising but intriguing industry in the near future. Keep following Cryptologi.st for further information and updates but remember that we are no financial advisors. Keep an eye out!
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