BeInCrypto Analyzed Four Most Interesting Cryptocurrency Projects of 2020
The list includes Elrond, MANTRA DAO, Stacks and Enjin.
All platforms have their own unique features and development prospects
International consortium of news organizations developing transparency standards.
Many new projects are launched in the crypto industry every year. Some of them turn out to be one-day butterflies because they do not bring anything innovative to the industry, or for a million other reasons. However, there are projects that not only survive, but become leaders and set a trend in the industry.
The HOTTEST Blockchain Projects to watch in 2021!
Below we take a look at four blockchain projects that have a strong foundation and intrinsic value, so they can eventually gain a prominent place in the industry..
Elrond’s cryptocurrency project is a blockchain platform designed to improve performance and execute up to 10,000 transactions per second. Its launch took place in July 2020.
In addition to impressive speed, Elrond features a sharding architecture solution. If most of the other blockchains are forced to use sophisticated technical equipment, Elrond can run on a regular computer without any problems. The ecosystem also has its own token As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More, EGLD.
Sharding is a scaling technology. It splits the blockchain network into separate segments (shadras) and increases its bandwidth through parallel processing of data and transactions..
Elrond has a unique technology called “adaptive sharding” that allows each node to process only a small fraction of the transactions in the entire network and execute them simultaneously and in parallel, increasing the overall efficiency of the system. Moreover, Elrond’s performance increases depending on the number of computers present on the network..
Elrond distinguishes three main types of sharding:
- Network sharding groups nodes into shards to improve communication between them. Thanks to this technology, data exchange within shards is much faster than in the entire network..
- Transaction sharding controls the display and processing of transactions in shards.
- State sharding implies that nodes within a shadr store history and state specific only to their shard. Transactions on accounts that are processed by different shards are executed after the session between shards ends. This reduces vulnerability to hacker attacks and improves network security.
Elrond is the first network to offer a real solution that successfully implements all three aspects of sharding simultaneously.
In addition, Elrond also uses a Proof of Stake (PoS) mechanism to mitigate the risk of potential attacks aimed at gaining unauthorized access to the network. Validators on the network are selected based on the number of EGLDs, which also improves the performance and security of the ecosystem.
This model motivates users: token holders earn money by staking or participating in the network as a validator. By becoming a validator, you can earn almost 36% per annum on your capital. However, this requires active participation in the network through an online machine. Staking brings about 29% of passive income per year, so you don’t have to do anything.
Finally, the Elrond virtual machine allows more programming languages for smart contract development, including Rust, C / C ++, Typescript, and more..
Thus, Elrond provides relatively high performance on mid-range computers and low transaction costs through an optimized consensus approach and innovative sharding technology..
MANTRA DAO (OM)
MANTRA DAO is a cryptocurrency project in the field of decentralized finance (DeFi) Decentralized finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More) driven by a community. In MANTRA DAO, the platform is supported by users, which distinguishes the project from many others like it. To make users more willing to participate in the network, the platform uses a motivation system, which is based on three components: lending, management and staking. MANTRA DAO uses its own OM token.
- Staking. OM token holders deposit their coins for staking through the MANTRA DAO website and earn 28.93% per annum.
- Lending. MANTRA uses both proprietary lending protocols and open source protocols, allowing cryptocurrency holders to lend to other users and earn interest income on their assets.
- Control. Users own a stake in the MANTRA DAO ecosystem and have the right to participate in the management of the platform. Thus, RM holders have a say every time an important decision is made regarding interest rate adjustments or grant allocation..
In addition, MANTRA DAO uses the KARMA engine, which rewards users when they make a positive contribution to the ecosystem. This approach encourages them to actively use the platform. KARMA includes ten tiers, each with new perks and benefits, such as higher staking rates or discount on transaction fees.
MANTRA DAO employs the scalable and reliable Rio Chain blockchain to support its financial products. It uses a federated model to improve security, speed, and scalability. It is an interoperable system where different blockchains can communicate seamlessly with each other. In addition, Rio Chain processes 3,000 transactions per second..
Another interesting feature is the burning of OM tokens, which happens every time they are used to complete transactions or pay loan fees. This process will continue until 50% of the original emission remains in the network..
Stacks – a cryptocurrency project formerly known as BlockStack – allows developers to create smart contracts and decentralized applications (dApps). The project uses the Clarity programming language, focused on increased security.
This means that developers do not have to worry about the privacy of their data when they create applications. Stacks uses STX token to service the blockchain. 1.3 billion tokens were created in the genesis block.
There are four basic layers in the Stacks network:
- Application layer. Here you can create applications.
- Protocol level. He is responsible for storage, financial services and authentication.
- Blockchain Stacksb. This is the connecting link, the whole ecosystem is held on it..
- Bitcoin blockchain is being used to create new coins.
Stacks is dependent on Bitcoin (BTC) as it reuses its computing power in a new mechanism called Proof of Transfer (PoX). This is perhaps the most interesting aspect of the Stacks project..
The PoX mechanism defines the requirements of miners to create new blocks on the blockchain. Previously, this used the method of proof of work (PoW), in which miners had to solve complex mathematical problems. It was replaced by PoS. This mechanism requires users to invest their assets in the ecosystem to keep it running. Finally, Proof of Burn (PoB) destroys coins in order to obtain block rewards and is usually combined with PoW..
Proof of transfer came in 2020. The new method eliminates the disadvantages of the previous three solutions.
There are two types of participants in the proof of transfer:
- Validator Nodes. They transfer BTC to the Stacks network and earn STX for participating in mining.
- Stackers. These are the holders of STX tokens and recipients of BTC from validator nodes.
Since the Stacks cryptocurrency project uses the consensus of the existing BTC blockchain, mining is more energy efficient. PoX is similar to proof-of-burn, but much more efficient because the coins are not burned but transferred to the stackers. In a nutshell, PoX creates a new STX coin via BTC transfer.
In addition, Stacks uses the bitcoin blockchain, so any action taken on the platform is recorded on and can be verified. This is especially useful due to the high incidence of hacks on various platforms. Using the bitcoin blockchain reduces the risks of hacking and manipulation.
Developers Plan to Launch Stacks 2.0, Tier 1 Blockchain, January 14, 2021.
Enjin is a blockchain platform focused on the gaming industry, specifically the creation of in-game custom assets. All in-game items are owned by players, which means they can sell them and make money.
Moreover, items can be taken with you to different games as if they are part of the same world. All assets are stored in a decentralized blockchain, respectively, all developers have access to them.
The Enjin cryptocurrency project uses its own token called Enjin Coin (ENJ). The value of ENJ lies in its locking mechanisms. As more and more elements are created, the ENJ is blocked (saved), and when the elements are destroyed (by burning), the ENJ is released. Hence, the more people use the ENJ platform and create new items, the fewer ENJ tokens in circulation..
Enjin uses blockchain technology to:
- Fixing property rights to an item.
- Convenient asset exchange; Opportunities to trade items.
- Conservation of value. Unnecessary items can be burned in exchange for ENJ.
- Enjin uses a single wallet where all digital assets are stored.
The ecosystem of the project allows you to create these items, sell and store them. For this, the following modules are used:
- An Enjin wallet that safely stores items and cryptocurrencies.
- EnjinX, an explorer that is used to track items and transactions.
- Unity plugin for developing and releasing games on various platforms.
- Marketplace, a safe space for trading items.
Enjin has entered into agreements with several well-known tech companies including Samsung and Microsoft. Finally, thanks to the support of AAVE, ENJ entered the DeFi gaming sector. Users host ENJ on AAVE protocol platform and earn interest.
Unique directions of development
All reviewed projects have their own unique characteristics that set them apart from the crowd and provide potential for future growth.
The main area for MANTRA DAO is the management system, where users earn by actively participating in the life of the ecosystem. For Elrond, the most interesting aspect is the sharding mechanism, which allows it to work efficiently even on low-power computers. Stacks features a PoX mechanism and a BTC link, while Enjin allows you to create collectible items that can be used or sold.
Disclaimer: The views expressed in this article are the personal views of the author and do not necessarily reflect the views of the BeInCrypto editorial staff..
All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..
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