The crypto market is tantalizing and terrifying. The promise of enormous rewards can spur investors to make impulsive decisions, which can lead to even bigger losses. Meanwhile, the strong libertarian streak among crypto enthusiasts often leads them to dismiss regulation. This in turn opens cryptocurrencies up to distrust from traditional investors who are put off by the Wild West feel of cryptocurrency exchanges.
Still, as more and more investors learn about cryptocurrencies and how they work, the idea that Bitcoin could be a game-changer for currency markets is gaining traction (and even acceptance) in mainstream markets. But what about cryptos besides Bitcoin? While countless other blockchains have sprung up since the original Satoshi white paper was published in 2009, only a few have made it into mainstream consciousness.
Today we’re going to examine three lesser-known but hugely powerful blockchains that could be poised for growth in 2022: Solana, Polkadot, and Logarithmic Finance.
Solana is a high-performance blockchain that can process 10,000 transactions per second. Solana will be deployed in two phases: the first phase will be launched in 2020 and the second phase will be launched in 2021.
Solana is a proof-of-stake blockchain with a hybrid consensus system (proof-of-work + proof-of-stake). The project aims to solve many problems related to scalability, including transaction latency, transaction cost, and resource consumption.
Solana uses sharding as one of its solutions for scalability issues by splitting up data into smaller pieces called shards. A node may store only one shard at any given time instead of all shards at once which means it needs less space on your hard drive or cloud provider account.
Polkadot is a blockchain platform that allows for the creation of interconnected blockchains. In other words, it makes it easy to create many different types of blockchains that can communicate with each other.
Polkadot provides a platform where developers can build decentralized apps (DApps) and create their interconnected blockchains. Polkadot also lets you change consensus mechanisms when you want to switch from one type of chain or protocol to another.
You could use Polkadot to build your Ethereum-like network but then later change it over time into something else. Like an entirely private network where only certain people have access rights.
Logarithmic Finance is a new financial system that aims to solve the problems of inflation and deflation. Logarithmic Finance uses log-based money supply growth rates, which means that the money supply grows exponentially at first. And then slows down exponentially as it approaches infinity. This allows for more stability in the value of crypto assets.
The main idea behind Logarithmic Finance is simple. It takes advantage of how humans perceive value, using our built-in tendency towards irrationality to create an efficient economic system. Inflation occurs when the value of an asset increases rapidly over time, deflation occurs when an asset’s value decreases rapidly over time.
These Three Crypto Projects Are Underrated but Have Great Potential
If you’re looking for an under-the-radar crypto project that has the potential to bring in big returns, then Solana, Polkadot, and Logarithmic Finance are three great candidates. Here’s why they’re underrated:
Solana is a scalable blockchain platform that uses parallel processing to process transactions much faster than existing blockchains.
Polkadot is a heterogeneous multi-chain technology that allows different blockchains with different features and properties to exist as one system. It aims to be “the Web 3.0” by allowing all kinds of different applications, such as messaging apps or games, on its network without having to worry about differences between individual blockchains being incompatible with each other (like how Facebook doesn’t care if your browser is Chrome versus Firefox).
Logarithmic Finance aims at creating a new financial structure through which all financial instruments are transformed into bonds backed by real assets (whether physical or digital), liquidated through smart contracts on Ethereum’s blockchain network.
While we’ve only covered three coins in this article, there are many more exciting opportunities in the cryptocurrency space. The most important thing to remember is that no matter which coin you choose to buy, it’s best to do your research first. There are many cryptocurrencies out there with interesting ideas and technologies—but not all of them will come to fruition.
It’s also important that if you’re looking for short-term gains on any investment, you should be extra careful about which projects have the potential for success and which ones don’t. If these coins aren’t your cup of tea, don’t worry. Keep an eye out on a trusted cryptocurrency exchange like OKX to stay on top of the cryptocurrency market and know when a new Altcoin or Cryptocurrency arrives. At the moment, Solana, Polkadot, and Logarithmic Finance are poised to boom during the year 2022.