Deepshikha | Jan 3, 2022 |
Top 10 Altcoins To Invest In 2022
Altcoins are digital assets that are not Bitcoin, such as a coin or token. The phrase “alternative” coin comes from the idea that Bitcoin was the first cryptocurrency, and all others are “alternative” coins. Here are the top six altcoins to keep an eye on in 2022.
Many co-founders, including VitalikButerin, founded Ethereum, a smart contract framework for enabling decentralised software (DApps), in 2013. Solidity is the company’s proprietary smart contract programming language. You pay a network gas fee in Ethereum’s token, Ether, to operate your Solidity smart contracts on the Ethereum blockchain. Ethereum is credited for laying the groundwork for what is now referred to as decentralised finance (DeFi). Because of Ethereum’s early success, the blockchain is now used by a substantial chunk of the DeFi industry. Fees will drop drastically as Ethereum upgrades to version 2.0 during the next year, giving a slew of new DApps a chance to flourish. The Ether token (ETH) is the ticket to ride on the Ethereum blockchain, which is becoming more valuable by the day.
The vast majority of smart contract apps presently use tokens. Chainlink promises to extend smart contracts’ power to the real world. Chainlink integrates third-party data into smart contracts. Ethereum Smart contracts may now react to changes in asset prices, global events, and API queries. Smart contracts are made even smarter with Chainlink. It also includes data from the real world. It enables farmers, for example, to hedge against a bad season. If values in the contract, such as share price, temperature, or rainfall, do not reach a specified threshold, the smart contracts filtered through Chainlink pay out insurance claims. When the application receives the necessary meteorological data, instant payments are made. The potential of Chainlink appears to be boundless, and many of the top DeFi apps demand exorbitant amounts for the LINK token to use their network.
Uniswap is a DApp built on Ethereum that allows users to exchange Ethereum tokens using liquidity pools. Uniswap has two main services: delivering and consuming liquidity. By tapping into its smart contract liquidity pools, Uniswap allows users to immediately exchange Ethereum-based cryptocurrencies. Other users replenish these liquidity pools, earning exchange fees in exchange for providing liquidity. The UNI coin is required for Uniswap fees, making it one of Benzinga Crypto’s top picks for this market cycle.
Stellar, a decentralised network that connects the world’s numerous banking institutions, employs a variety of disparate payment mechanisms (ACH, SEPA, SPEI, etc). Stellar’s network connects these systems with a decentralised ledger that includes on-off ramps for each payment method. Ripple, Stellar’s closest competitor, is under investigation by the Securities and Exchange Commission. Stellar has a golden opportunity to seize the day and make a run at becoming the world’s largest payment network. Users must pay a transaction fee and meet a margin requirement in Stellar’s currency, Lumens, to avoid spam on the Stellar Network (XLM).
Decentralized lending promises better security and anonymity than centralised lending, as well as higher interest rates. Aave, one of the most popular lending protocols today, requires borrowers to put up collateral equal to or more than the amount borrowed into the loan smart contract. The smart contract securely maintains collateral in escrow during the loan’s tenure, eliminating the need for a third-party intermediary. If the borrower defaults, the smart contract pays the lender automatically. Aave offers a ten percent annual percentage yield (APY) on specific stablecoin loans with no need for know-your-customer (KYC), a product that is unheard of in traditional finance.
Solana is a smart contract blockchain with a thriving DeFi ecosystem and over $10 billion in protocols that have been locked in. Solana and other smart contract blockchains have been dubbed “Ethereum killers” by some. Others believe that the demand for blockchain goods will rise to the point where many of the world’s largest smart contract blockchains will be completely utilised at the same time. Because of its deep-pocketed VC funding, the Solana blockchain is likely to see a considerable amount of innovation regardless of whatever outcome occurs. Sam Bankman Fried and the FTX team have embraced Solana, and they surely have the funds to assure the blockchain’s success. Many financial applications demand the security of a heavily decentralised blockchain like Ethereum, whereas blockchain gaming and other applications benefit from a high-throughput, low-fee chain like Solana. The SOL token is Solana’s native token, and it is essential to communicate with the blockchain.
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