Did you miss the Shiba Inu (SHIB)? Here are 2 cryptocurrencies ready to explode 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 Shiba Inu, and in the following days the number of tweets mentioning the meme icon has doubled to over 20.

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

However, the meme token’s price has since fallen by 65%, and unless significant new use is introduced, its price is unlikely to rebound. On the bright side, there are plenty of other blockchain projects with huge potential.

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

1. Solana

Solana is a smart contract platform built on blockchain technology, a logging 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 scale these networks.

When verifying transactions, the nodes must agree on the order in which these events occurred. To do this, hold timestamp transactions using the local system clock. See the article: Opinion on Cosmos Cryptography (ATOM): What is the future and prediction for this token?. But as the network is decentralized (i.e. adding new nodes), subtle differences between local clocks become more frequent, 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 embedded in the blockchain itself, creating a verifiable order of events, which speeds up throughput. In fact, Solana can theoretically process 50,000 transactions per second (TPS), and achieve finalization (that is, it irreversibly adds transactions to the blockchain) in about 13 seconds.

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

Even better, the developer team recently announced Solana Pay, a potentially broken payment solution. It bypasses banks and credit card networks, allowing consumers to pay merchants directly using stablecoins like USD Coin, a cryptocurrency pegged to the price of the US dollar. And since Solana’s blockchain powers the service, payments are settled in seconds and transactions cost a fraction of a penny.

As Solana’s decentralized ecosystem of apps and services becomes increasingly popular, the demand for SOL tokens (the currency used to pay transaction fees) is expected to increase, driving their price up. This is why this cryptocurrency seems like a smart investment.

2-sequence

Blockchain-powered smart contracts are computer programs that execute automatically when predefined conditions are met. For example, a smart contract can be used to facilitate sports betting. The protocol will first collect the stakes of the participants, then once the sporting event is over, a credit will be credited to the winner’s account. Most importantly, smart contracts are immutable and immutable once deployed, which means that they are a very secure and efficient way to implement agreements.

Unfortunately, the blockchain cannot interact with external systems. This would harm the very problem they are trying to solve (ie central control). Relying on a single external system would negate the decentralized nature of the network by creating a single point of failure. See also: JPMorgan: Bitcoin Reveals ‘Biggest Challenge’ in History and Surprising ‘Fair Value’ for BTC Price. Of course, this security feature severely limits the usefulness of smart contracts in the real world. For example, in my typical game, how does the protocol know who won the bet? The answer is Chainlink, a decentralized network of Oracle – entities capable of bringing real-world data to any blockchain.

Here’s how it works: Chainlink node operators (i.e. people who manage oracle infrastructure) must share Link tokens in order to participate. This ensures their sincerity. Then, when the smart contract requests external data, such as the result of a sporting event, the node operators make a bid for that task and the Chainlink protocol selects multiple oracles to retrieve the data. The keyword is “multiple”. By collecting and reconciling data from multiple sources, Chainlink can provide accurate data, without compromising the decentralized nature of the network. Once the process is complete, contract operators are paid in link tokens.

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

In the future, assuming dApps and DeFi products continue to grow in popularity, more smart contracts are likely to rely on Chainlink oracles for data. In turn, this will create demand for the link icon, which will lead to a higher price for it.

Read This article To learn how to buy cryptocurrency on eToro.
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