Top Blockchain to watchout in 2022 and beyond | Best Investment
This blog is going to be an awesome blog so be ready to read some good stuff. Before we deep dive let’s make our brain do some exercise. On what thing every crypto project is deployed, What is the technology that is better than the Internet itself and revolutionary, the future is in the hands of what?
You got it right, didn’t get it yet, It’s Pickachu, Kidding, here I am talking about Blockchains. I bet on blockchain coins mostly and the reason is simple: if the blockchain will fail, the market will crash, can you still feel the impact of the LUNA/UST fiasco?
If you are thinking what’s my opinion when it comes to investing in Web3 projects, I always look for few things as a part of my research:
- About founders, their previous work, success rate, network, etc.
- About the team members.
- What is the problem they are trying to solve
- How many competitors are there
- Project tokenomics
- Backed by whom
- Community of course!
More I will tell in another blog when I will tell you about the best projects, for now let’s deep dive into blockchains.
Before you read further let me cover a very important topic that is very necessary to make your blockchain understanding better, and this is a problem that every blockchain faces, it is called the BLOCKCHAIN TRILEMMA.
What is the Blockchain Trilemma?
The definition of an idol blockchain states that a blockchain must be highly scalable, completely decentralized and secured. So this blockchain trilemma has three pillars:
- Scalability: It means that a blockchain should be able to handle high numbers [ 100,000 Tx ] of successful transactions per second and shouldn’t get congested and without putting any impact on gas fees.
- Decentralized: There should not be any cap on network validators i.e. A blockchain can have an unlimited number of validators.
- Security: No security issues, Blockchain must be highly secured.
Every blockchain faces this problem where in order to provide the two features they need to compromise with one, i.e. Blockchain developers need to either compromise with Decentralization or Scalability in order to provide the other two features, most of the time it is decentralization. Nobody will ever compromise with security and we all know the reason.
Here is the list of four blockchain coins in which I am invested and I am having a long term vision, for the reason why I am confident, keep reading.
Most people are confused when I say BNB CHAIN they hear Binance Chain, not their fault, Binance Smart Chain rebranded in 2022 to BNB CHAIN and established that they are not at all related with Binance ecosystem. BNB CHAIN is an Open-source, Community Driven, and Scalable blockchain project.
Most people may ask why BNB CHAIN is on number one on this list, the answer is, because it deserves this spot. BNB CHAIN has not faced any downtime since its inception, the transactions are lightning fast, and the gas fees are also low, less than 50 cents. For some people 50 cents is also high but in general it is low when compared to the advantages of BNB CHAIN. BNB CHAIN is the second largest chain when it comes to TVL [ Total Value Locked ]
The governance coin $BNB has a plethora of use cases making it one of the best investments, not just that it is deflationary, it keeps on burning with every transaction and my favorite coin. The max initial supply of BNB was 200 Million the current maximum supply is around 163 Million and it will keep burning until the supply reaches 100 million and even after it reaches 100 million it will burn.
The king of all blockchains but still in second spot, When merge?
In the recent Ethereum Community Conference 5, Vitalik said that the merge date is confirmed and we all saw a spike in the ethereum price. Ethereum is without a doubt the best blockchain and also the most trusted, tops the TVL charts by having more than 68% share of all the value locked across all the chains.
Ethereum is one of the biggest examples of blockchain that is facing the trilemma, Ethereum is highly decentralized and secure as well but we all have faced the slow transactions and extremely high gas fees. With the upcoming merge that is in September (As stated in Eth CC 5) ethereum will shift from the Proof of Work consensus mechanism to Proof of Stake Consensus mechanism making the chain more environmentally friendly and robust.
It is stated that after the merge Ethereum 2.0 will be able to handle 100,000 transactions per second without compromising Decentralization or Security. But all these things will take time and till then Ethereum will remain at second spot for me.
After the merge, Ether, the native coin of Ethereum blockchain will become deflationary, and this is a great sign, I believe ether will soon reach the mark of $10000, NFA. Money Money Babeeee!
Now you people might be thinking that everyone talks about Ethereum & BNB CHAIN who’s next in the list. Wait Wait Wait so on number three we have:
Cosmos: The Internet of Blockchains
Why is Cosmos called the Internet of Blockchains? Why?
Cosmos is trying to make a decentralized, easy-to-join, interoperable meta-layer for blockchain that improves scalability, security, and liquidity across the blockchain space. Cosmos, which is often called “the internet of blockchains,” links different blockchains together using a protocol made for Inter-Blockchain Communication (IBC). Different blockchains are set up as “zones” that connect to each other through a “hub” (the Cosmos Hub) so that they can work together. This makes it easier for data in general and tokens in particular to move from one chain to another. The ATOM token fueling the Cosmos Hub uses a Proof-of-Stake (PoS) consensus method. Users “stake” ATOM to help keep the network safe, and in return, inflation and transaction fees pay them back. Blah Blah Blah….
Cosmos has Ok Ok market share when compared to its competitors, unlike its competitors, ATOM the native token of the Cosmos ecosystem is a small cap gem for me with a very strong fundamentals and that is why it grabs the third spot.
The funny part is that all the blockchains in the list are competitors of each other, they are I kill you, you kill them MFs.
Now on 4th spot is a very popular blockchain that has nearly solved the blockchain trilemma but nobody agrees, anyways it is my good book.
This blockchain is blazingly fast, cost efficient & highly secured and has nearly solved the blockchain trilemma through its core consensus concepts. Avalanche is built across three chains:
- The C-chain.
- The X-chain.
- The P-chain.
They mean “contract,” “exchange,” and “platform,” respectively. Avalanche’s DeFi ecosystem is on the C-chain. This is where most users do most of their transactions. The Snowman Protocol, a specific use of the Avalanche Consensus Protocol, is what makes the C-chain work.
AVAX is the native governance token of the Avalanche chain and unlike any other coins burning mechanisms AVAX also uses a burning mechanism where all the transaction fees are burned and this is just a single thing but overall like all chains AVAX has multiple use cases and I am bullish.
So these are the top four blockchain coins that represent 58% of my total crypto investment portfolio. Nothing is financial advice and always do your own research. I invested in these because I have done the research, looked after the fundamentals and the roadmap and found a lot of future potential.
If you want to learn more about how to your own research do check out this video on YouTube.
August 24, 2022 @ 6:03 am
Top ,.. top top … post! Keep the good work on !