Top 5 Altcoins to Watch in 2023
Cryptocurrencies have become increasingly popular in recent years, with Bitcoin and Ethereum dominating the market. However, there are thousands of other cryptocurrencies, known as altcoins, that offer unique features and potential for growth. In this article, we'll take a closer look at the top 5 altcoins to watch in 2023 and why.
Cardano is a third-generation blockchain that utilizes Proof-of-Stake (PoS) consensus mechanism. Currently, Cardano supports multiple use cases and applications such as smart contracts, DeFi, Internet of Things, NFT, etc. It is also the first blockchain to have a research-driven approach. The project has published various peer-reviewed papers and worked with top universities to conduct blockchain-related education and research.
Though Cardano is a PoS-based blockchain like many others, its PoS consensus mechanism, called Ouroboros, is unique. Ouroboros is the first PoS mechanism peer-reviewed, security-audited, and verified by third parties. It enables the operation and security of ADA (the native token of Cardano) and smart contracts on Cardano. Also, Ouroboros ensures that ADA rewards are given out to those who stake ADA.
Polkadot is a public decentralized multi-chain network that prioritizes interoperability and scalability while not compromising on security. It was founded by Gavin Wood, co-creator of Ethereum, and raised USD 145 million in its high-profile ICO in 2017. As one of the most significant projects supported by the Web3 Foundation, it is undoubtedly a project worth one's attention.
Polkadot introduces significant infrastructure improvements. It consists of one main blockchain called the "Relay Chain," and several independent sub-chains called "parachains". The Relay Chain is responsible for security, governance, and data validation. Each parachain is independent and customizable to every developer's needs. Because of such a multilayered structure, Polkadot can achieve speed, security, and scalability simultaneously and is thus considered among the most scalable public blockchains, even more so than layer-2 solutions.
Blockchain oracles connect data from all kinds of sources to the blockchain, enabling the technology to have many more real-world applications than ever. The most well-known and widely-used oracle in the industry at the moment is Chainlink. Chainlink is a decentralized oracle service provider that feeds off-chain data to blockchains.
Being a decentralized network, Chainlink can ensure that its data and computation are more secure and trustless than those of centralized networks. It also has a strong development team and partnerships with major blockchain projects. The Chainlink team got former Google CEO, Eric Schmidt, former LinkedIn CEO, Jeff Weiner, and DocuSign co-founder Tom Gonser, onboard as strategic advisors. With such a powerful team, it is no surprise that Chainlink prevails as the top oracle in the market.
Solana is a high-performance blockchain platform that aims to provide fast and scalable transactions. It is a rising blockchain that debuted in 2017 and had its mainnet launched in 2020 with the aim of rivaling Ethereum. It boasts scalability with open source, fast speed, and low cost. In 2021, Solana saw massive growth in users, dapps, and TVL. Phantom, the most popular Solana wallet, experienced a six-fold increase in the number of active users from 200,000 in August 2021 to 1.2 million in October 2021. After only one year, Solana climbs to the top 6 most prominent blockchains in the world in terms of total value lock (TVL).
The goal of Solana’s infrastructure is to eliminate performance bottlenecks, enabling a high level of scalability. That’s why the team decided to use both Proof of Stake (PoS), a proven method of validation that ensures speed and energy efficiency, and the unique Proof of History (PoH).
In 2020, a group of developers took advantage of the Proof-of-Stake (POS) mechanism to come up with a new blockchain called Avalanche. While blockchain technology has achieved certain milestones and recognition in the public eyes, the route to mass adoption and total replacement of traditional means is still rocky. The main challenges of blockchain that skeptics often mention include fiendish energy consumption, counterintuitive complicated processes, lack of investor protection, and good old fear of the unknown. Avalanche (AVAX) was created as an attempt to remedy these problems. It is an eco-friendly, low-cost, and fast-paced blockchain of the future.
Avalanche has attracted tremendous attention and capital from big institutions such as Andreessen Horowitz, Mastercard, etc. Despite being born quite recently, in September 2021, at the height of a bull market, Avalanche now claims the top 4 spots of the biggest blockchains by Total Value Locked.
These are just a few of the top altcoins to watch in 2023. Each of these projects offers unique features and growth potential. As cryptocurrencies are a rapidly evolving area, it is crucial to stay up-to-date on the latest developments and trends in the crypto market, always approach them with caution, and consult with a financial advisor before making any investment decisions.
Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
- How Mint Cash Caused USTC To Soar 400%Cryptocurrency2023-11-28 | 5
- Bitget's Staking: Streamline Your Crypto Investments for Optimal ReturnsCryptocurrency2023-11-28 | 5
- Staking Rewards: Your Essential Tool for Calculating Crypto Staking APYCryptocurrency2023-11-28 | 5