2022 Is the Year of the DeFi Altcoin and Layer-2 Tech
And in almost the blink of an eye, another year is soon coming to a close.
2021 has been an eventful year in the cryptocurrency and decentralized finance (DeFi) sector, with several new technological developments having cemented the position of the blockchain world in the minds of those looking at a fully democratized digital financial system of the future, and some incredible market movements, largely driven by influencers such as Elon Musk whose infamous tweet created incredible levels of volatility back in May, and at the opposite end of the influential spectrum, the US regulators who bolstered confidence by discussing a potential framework for all things crypto, bringing the values right back up again.
Last week we saw a record high in Bitcoin value, with the world’s most popular cryptocurrency having gone past the $67,000 mark.
With a clearly exponential level of interest and enthusiasm in the future of the entire cryptocurrency and DeFi spectrum, next year is looking set to be one in which the technology and use cases for digital assets could go way past today’s already highly diverse boundaries.
One such star that is being held in high esteem for next year is Cardano, the Altcoin which goes under the symbol ADA.
This year, Cardano staking has been a popular dynamic among enthusiasts, which famous cryptocurrency trader Austin Arnold, who has over 1 million followers on his channel, considers is gaining more traction after landing partnerships with television satellite provider DISH and announcing that the network has received $100 million for investment in Cardano-focused projects in Africa.
Cardano, which particularly interesting as a smart contract-focused platform, has the advantage of being of great interest to those wishing to focus on the increasingly popular nature of decentralized blockchain-based smart contracts, and adds the added attraction of being one of the more interesting altcoins for participation in staking this year.
Along with CoinMetro’s own native XCM token, Cardano’s proof-of-stake network offers a passive reward known as a “staking yield” for staking ADA tokens.
The Cardano coin is one of the most popular products of the industry, with a market cap of over $70,412,355,000 as of October 25, 2021.
One of the main drivers of interest in Cardano is that there are areas of the world which are still developing in which Cardano’s technological topography and decentralized nature could stabilize and change the landscape of entire segments of the world by aligning regions with less developed commercial infrastructure and a large unbanked population, bringing the ability to produce contractual arrangements and pay electronically for services and goods which currently are not possible via the traditional centralized system.
On that basis, Ethereum’s new ETH2 is a case in point. Founder Vitalik Buterin has been forging ahead with the ETH2 upgrades which also concentrate on refining the smart contract versatility of Ethereum whilst addressing other matters via the proof-of-work consensus algorithm that keeps Ethereum secure and decentralized with a big environmental impact.
The user-focused ideology behind the upgrades are to rearchitect Ethereum to make it more scalable, secure, and sustainable which are all aspects of many industries right now.
As the number of people using Ethereum has grown, the blockchain has reached certain capacity limitations. This has driven up the cost of using the network, creating the need for “scaling solutions.” There are multiple solutions being researched, tested and implemented that take different approaches to achieve similar goals.
According to Ethereum, the specific purpose of scalability is to increase transaction speed, and transaction throughput without sacrificing decentralization or security. On the layer 1 Ethereum blockchain, high demand leads to slower transactions and elevated gas prices. Increasing the network capacity in terms of speed and throughput is fundamental to the meaningful and mass adoption of Ethereum.
Thus it is likely that the few months ahead will attract the attention of those enthusiasts who have been keen advocates of this year’s unequivocal acceleration in cryptocurrency and DeFi development and that the year ahead will be one in which the focus will be on the continual refinement of the DeFi architecture that powers the world ahead.