Did you miss the Shiba Inu (SHIB)? Here are 2 ready-to-use cryptocurrencies to buy now

Shiba Inu (CRYPTO:SHIB) was relatively unknown until Elon Musk tweeted a photo of his dog Floki on October 4, 2021. Floki happens to be a Shiba Inu, and in the following days, the number of tweets mentioning the meme token was multiplied by more than 20.

When the dust settled later that month, Shiba Inu had hit a record high of $0.00008616, a 153,000,000% gain in less than a year. In other words, if you invested $1 in Shiba Inu in November 2020, you would have made over $1 million by the time it peaked in October 2021.

However, the price of the meme token has fallen by 65% ​​since then, and unless a significant new use is introduced, the price is unlikely to recover. On the plus side, there are plenty of other blockchain projects with huge potential.

And while investors should never expect the kind of returns generated by Shiba Inu, Solana (CRYPTO:SOL) and Chainlink (CRYPTO:LINK) can generate monster returns in the long run.

1. Solana

Solana is a smart contract platform built on blockchain technology, a registration system used to track transactions and prevent fraud. In the context of cryptocurrencies, blockchains store data on hundreds or thousands of nodes (computers) and this decentralized architecture helps secure the network. Unfortunately, it also makes it difficult to expand these networks.

When verifying transactions, nodes must agree on the order in which these events occurred. To do this, nodes timestamp transactions using the local system clock. See the article: Advice on the crypto Cosmos (ATOM): what future and prediction for this token?† But as the network decentralizes (ie new nodes are added), minor differences between local clocks become more common and it takes time to reconcile them.

Solana solves this problem with its unique consensus protocol, which combines proof-of-stake and proof-of-history. Rather than relying on each system’s local clock, timestamps are built into the blockchain itself, creating a verifiable sequence of events, speeding up throughput. In fact, Solana can theoretically process 50,000 transactions per second (TPS) and reach finality (i.e. irreversibly adding transactions to the blockchain) in about 13 seconds.

As a result, Solana has become popular with decentralized application (dApp) developers and decentralized financial (DeFi) investors. The platform supports more than 1,300 projects, including a collection of video games, NFT marketplaces, and DeFi protocols. In fact, Solana ranks sixth among the blockchain industry’s DeFi ecosystems, with a 3.9% market share in terms of total dollars invested on the platform.

In fact, the developer team recently announced Solana Pay, a potentially disruptive payment solution. It bypasses banks and credit card networks, allowing consumers to pay merchants directly using stablecoins such as USD Coin, a cryptocurrency pegged to the price of the US dollar. And because Solana’s blockchain powers the service, payments are completed in seconds and transactions cost a fraction of a cent.

As Solana’s decentralized ecosystem of applications and services grows in popularity, the demand for SOL tokens (the currency used to pay transaction fees) is expected to increase, driving the price up. Therefore, this cryptocurrency seems like a smart investment.

2.Chain Link

Blockchain-powered smart contracts are computer programs that run automatically when predefined conditions are met. For example, a smart contract can be used to facilitate sports betting. The protocol would first collect the bets from the participants and then, once the sporting event is over, credit the winner’s account. Most importantly, smart contracts are tamper-proof and immutable once implemented, meaning they are a very secure and efficient way to enforce agreements.

Unfortunately, blockchains cannot communicate with external systems. This would jeopardize the very problem they are trying to solve (ie centralized control). Relying on a single external system would negate the decentralized nature of the network by creating a single point of failure. Also see: JPMorgan: Bitcoin Reveals ‘Biggest Challenge’ in History and Surprising ‘Fair Value’ of BTC Price† Of course, this security feature severely limits the usefulness of smart contracts in the real world. For example, how can the protocol in my sample game know who won the bet? The answer is Chainlink, a decentralized network of oracles – entities that can bring real-world data to any blockchain.

Here’s how it works: Chainlink node operators (i.e. the people who run the Oracle infrastructure) must deploy Link Tokens to participate. This guarantees their honesty. Then, when a smart contract requests external data, such as the outcome of a sporting event, the node operators bid on this task and the Chainlink protocol selects multiple oracles to retrieve the data. The key word is “several”. By aggregating and reconciling data from multiple sources, Chainlink can deliver accurate data without compromising the decentralized nature of the network. Once the process is complete, node operators will be paid in Link Tokens.

Chainlink is of course not the only oracle network, but it is by far the most popular. It has more than 1,100 partnerships, including 90 blockchains and more than 550 DeFi products, while its closest competitor, the Band protocol, has fewer than 60 partnerships in total. In other words, Chainlink is virtually unparalleled.

And in the future, assuming dApps and DeFi products continue to grow in popularity, more smart contracts are likely to rely on Chainlink oracles to get data. This in turn will create demand for the Link token, which will drive up the price.

Read This article to find out how to buy cryptocurrency on eToro.
Read This article to find out how to buy cryptocurrency on Binance.

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