Over the last two decades, new financial technology has profoundly changed the world. Often, technology follows a bell curve with defined stages while various people begin catching on. The influx of the internet and computers has redefined how we endeavor our day-to-day businesses, communication, and life quality in general. According to a study by HSB, at least one-third of the small-scale businesses in the US accept cryptocurrencies as a mode of payment.
This is an indication that cryptocurrencies are on the road map to mainstream adoption. The underlying technology of cryptos (blockchain) will impact the world more than the internet ever has, and cryptocurrencies including Ethereum, Ada, Polkadot, Dogecoin, and Chainlink will be adopted conventionally. Here’s why.
Chainlink has been one of the most promising cryptos of 2020. With announcements of new integrations and collaborations almost every other day, it’s a decentralized oracle provider that has shown potential application in real-world cases. Chainlink boasts of numerous healthy accolades that can comfort average investors into long-term commitments.
Chainlink is also the oracle of choice for the significant DeFi players such as Aave and Synthetix. The increase in the number of chainlink collaborations, including partnerships with Microsoft and Google, shows a growing demand for blockchain technology.
The main reason behind the growing confidence in Chainlink is its technological advances protocol. It is said to be the only company with technology that will revolutionize cryptocurrencies’ efficiency. It also makes it possible for data outside the realm of blockchain to be verified via smart contracts. This significantly enhances the convenience of cryptocurrency and their advancement towards becoming fully incorporated into the market.
Ethereum is the second-largest cryptocurrency, after Bitcoin. Its development was crowdfunded back in 2014, launched in 2015, and it’s primarily used for decentralized finance. ETH focuses on running the program codes of decentralized applications.
At its most basic, Ethereum is an open software and is based on blockchain technology. It is not only a platform but also a programming language. Consequently, it’s also a distributed public network like Bitcoin. Some of the most popular ETH features that make it a popular choice include:
Ethereum operates through a global network of computers which work together as a supercomputer. A smart contract refers to a computed code that facilitates the exchange of money, shares, property, or anything valuable. While running on a blockchain, a smart contract becomes an autonomous computer program that executes automatically when certain conditions are met.
Ethereum’s main innovation, the Ethereum Virtual Machine, operates on the Ethereum network. The primary function of the EVM is to allow anyone to run any program, despite the programming language, and makes blockchain apps much more efficient. ETH is a decentralized app. Therefore, it can decentralize any centralized services, such as the provision of loans from banks to intermediary services like voting systems, title registries, regulatory compliance, and more.
Polkadot is currently the fourth largest crypto coin in terms of market capitalization. Its market currently stands at about $13.45 billion. It is a proof-of-stake blockchain network, and it has also grown to be one of the most popular for decentralized finance investment purposes.
Polkasource is one of the infrastructure projects being developed on Polkadot. It will primarily be meant for enhancing the convenient access of blockchains. The Web3 foundation behind Polkadot will also enhance the interoperable blockchain to provide developers with an infrastructural basis conveniently. Investors can also take advantage of this essential feature in the long term through staking.
The native DOT has not been available for trading for a while, but its potential is undisputed. Experts foresee a future growth potential, and it has a firm place in the crypto world mainly due to its exceptional concept.
The Polkadot blockchain protocol has a flexible and security-focused ecosystem. It helps improve data transparency and availability. The decentralized governance model has an advanced governance model whereby all stakeholders are involved in making the ecosystem’s most important decisions.
Dogecoin is an open-source, peer-to-peer cryptocurrency which has exploded in popularity in the recent past weeks. What began as a joke, has become an inflationary coin, contrasting coins such as Bitcoin which are deflationary because of the limited number of coins created. Dogecoin has continually gained popularity since it has an active community of miners.
The start of 2021 turned out to be very successful for Dogecoin. It was fueled by Elon Musk’s tweets against buying AMC and Gamestop. Its infrastructure has not been a critical source of concern for coin developers. However, it’s based on Litecoin and has a similar technology behind the proof-of-work.
The main reason foreseeing its growth and increased potential, despite the small funding, is a community of loyal supporters who trade and use it as a tipping currency for their social media content. Also, the team behind the project has excellent prospects and are considering integrating smart contracts.
Cardano is an open-source blockchain-based computing platform that is used for financial transactions and distributed computing. Right from scratch, ADA was designed for mass adoption. It is driven by three significant pillars; sustainability, interoperability, and scalability. Its platform can be used for the creation and running of smart contracts and Distributed Computer Apps. It is a multi-layered software hence has various applications.
ADA was one of the standout coins of 2017 and considerations are being made for it to be added to Coinbase. Cardano is decentralized, but the IOHK actively works on it. The IOHK is a team of developers that was founded in 2015. The coin is a work in progress but when it fully succeeds, it will be a go-to investment option but so far, so good.
Cryptocurrency is becoming a backbone for many sectors and different people from different walks of life, especially for investors. For some people, mass adoption of cryptocurrencies seems imminent.
The world’s financial sector is embracing this exciting frontier, and there are lots of prospects towards a smooth transition into crypto and blockchain mass adoption.
However, for this to happen, two things should be prioritized. The government should foster an enabling environment and the creation of better experiences so that even the less tech-savvy people can use cryptocurrencies with ease.