Developments in the cryptocurrency ecosystem are countless. The arena is a constant churn of latest news and events, critical updates, the emergence of new technologies, and up-to-date information about cryptocurrency. Still, the high rate of volatility and rise and fall of top cryptocurrencies makes the crypto-space unpredictable.
Nonetheless, looking at the cryptocurrencies market from the technological standpoint provides a very different perspective. One which allows us to see further than mere market speculations.
The global cryptocurrency MCAP is currently at $221M USD. This is fairly large sized drop from January 2018’s MCAP of $800M. After the drop, it become important for analysts to discover projects that can sustain the test of time with backing of usable tech that could mold future generations.
Looking into the future from a technological standpoint, the cryptocurrencies that will make an impact in the future will possess vital elements of utility. Take a long view of what you can expect!
3 Powerful Cryptocurrency Platforms Likely to Make that Impact
If you want to invest in digital currencies now or later, this is the right time to take the right position.
This is one of the most famous cryptocurrencies after Bitcoin. It came into the crypto-market in 2015. Ethereum has rapidly turned the way people conduct their business using the blockchain technology. Additionally, the cryptocurrency program introduced innovative technological developments that are taking Ethereum to the next level.
What are Really Decentralized Applications (DAPPs)?
The Decentralized Applications (DApps) are open source applications that run on peer-to-peer (P2P) networks. They help to maintain a high level of transparency than the centralized applications. DApps have a wonderful feature that makes them unique. Additionally, they are more secure than the centralized applications.
The absence of a central point of failure makes them less likely to suffer from hacking and other attacks. DApps have tokens they use to pay users for providing computing power. Furthermore, there is little wonder why many companies are integrating them in their networks.
Blockchain decentralized applications have the following characteristics:
- The application must be open-source
The application must function independently, without any central entity controlling its tokens.
- The application’s information and operation history must be cryptographically recorded (decentralized)
To avoid any central points of failure, the user of the application’s data should store it in a public, decentralized blockchain using the cryptography concept.
- The application must use a cryptographic token for its operation (incentive)
Bitcoin or a token is actually required to access the application. So, any contribution of value should receive compensation with the application’s tokens.
- Applications must create tokens (algorithms/protocol)
Bitcoin uses the proof-of-work algorithm as a proof of value according to a standard cryptographic algorithm.
Types of DApps
There are three different types of DApps at the moment.
Money Management DApps (Type I DApp – Smart Contracts): This type of DApp promotes the trading of cryptocurrencies through smart contracts. The two parties involved make a smart contract, fulfill the agreement, and make payment. Bitcoin and also other altcoins are examples of type I DApps.
Centralized + Decentralized Data DApps (Type II DApp): This type of DApp depends on information from blockchain-based oracle or outside of the blockchain to process transactions. The Omni protocol is an example of a type II DApp.
Type III DApps: This type of DApp is a bit unclear in nature. They use a type II DApp protocol for their operation. For example, the SAFE network uses Omni protocol to issue safecoins that are really applied to the development of distributed file storage.
DApps are developing at a faster rate and the technology backing Ethereum’s DApps could make it an influential digital currency in future.
This cryptocurrency platform arrived in September 2017. Cardano’s team itself stated that,
“’It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach.”
Cardano’s major aim as a decentralized and open-source blockchain is to completely change smart contracts for better. In fact, the developers aim at delivering an advanced smart contract system.
With a group of like-minded researchers and engineers working closely together, Cardano may likely succeed in its bid to achieve a smart contracts platform.
Cardano has one of the biggest innovations in blockchain technology – Ouroboros. Its function is to get rid of energy need for evidence of work protocols.
Furthermore, Ouroboros helps to eliminate this traditional obstacle thereby opening blockchain technology to a larger user-base.
Daedalus ADA Wallet
Daedalus ADA Wallet is another digital currency innovation coming from Cardano. The ADA wallet is a multi-platform secure wallet meant for ADA. The key features are:
- It has the ability to transfer paper certificates for optimum cold storage security.
- Daedalus wallet has encrypted keys and spending passwords to help reduce malware and also other security issues.
- ADA wallet provides configurable assurance for users to see unchangeable transactions.
The innovations in Cardano are growing faster in the crypto-community. These features will likely make blockchain technology climb as cryptocurrencies are expected to become the mainstream fill-in for paper money in no distant future.
From a technology standpoint, IOTA (MIOTA) is one of the platforms to keep a close eye on.IOTA is operating a public distributed ledger but without blockchain technology. Can you imagine that? It operates an entirely different model from the current blockchain technology.
IOTA has an innovation that is very unique. Tangle is its name. It is the next generation public distributed ledger that works on the principle of Directed Acrylic Graph. It is lightweight and scalable, giving the users the opportunity to use it without charges.
There is no mining with IOTA, and without miners, IOTA offers a new way for transactions to take place. For example, you must first approve two past transactions before making a new one. This allows the entire network to work in agreement. Here are the key features of IOTA:
- There are no transaction fees.
- IOTA also has no miners, only a decentralized ledger.
- The transactions are scalable with no limit to transactions that are verifiable.
It is incredible and amazing that IOTA has a publicly distributed ledger without a blockchain technology support. Furthermore, this alone could transport IOTA to mainstream use.
What is the Future of Cryptocurrencies?
There are so many technological advancements to watch out for in the future. They include decentralized applications (DApps), smart contracts, blockchain-like technology without blocks, a chain, or miners. A few other important platforms to watch as well are Stellar and Ripple.
Cryptocurrencies and platforms will become focal points for utility, covering the needs of companies, corporate organizations, and even governments. The utility of any of these cryptocurrencies will lead to price rises. Hence, any cryptocurrency that fails to provide utility may not stand the test of time, especially price wise.
This article should not be taken as, and is not intended to provide, investment advice. Users are ultimately responsible for the investment decisions he/she/it makes based on this information. It is your responsibility to review, analyze and verify any content/information before relying on them. Trading is a highly risky activity. Do consult your financial adviser before making any decision. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.
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