If you’re a cryptocurrency enthusiast, this list is for you. Maybe it’s time to get with the program if you’re not!
But what exactly is cryptocurrency? A cryptocurrency is a form of digital cash used for peer-to-peer payments. Because these payments occur across a distributed ledger rather than through centralized institutions like banks and government entities, they are secure and impossible to counterfeit. The most popular forms of cryptocurrency are Bitcoin (BTC), Ether (ETH), and Ripple (XRP).
Cryptocurrency is the future of currency-based transactions, and if you haven’t already gotten involved in the cryptocurrency market, now is the time to start. In this article, we will talk about a few exciting Cryptocurrency projects in 2022
Ethereum 2.0
Ethereum 2.0, the highly anticipated upgrade to one of the world’s most valuable cryptocurrency projects, will be released in 2022. Ethereum 2.0 aims to increase transaction speed, scalability, safety, and security by switching from proof-of-work (PoW) to proof-of-stake (PoS).
It’s important to note that this won’t happen overnight; it will be a multi-year process starting with the introduction of PoS on a beacon chain that is initially separate from the existing Ethereum blockchain. This new chain will eventually replace the old one as all nodes are upgraded over time.
Bitcoin ETFs
An ETF, or exchange-traded fund, is a type of investment that allows people to get involved without directly owning the underlying asset. For example, investors can buy an ETF that tracks the price movements of Bitcoin and then trade it, rather than buying and selling actual Bitcoin itself. The SEC has been reluctant to approve these investments in the past. However, this past year, Canada approved the first-ever Bitcoin ETF—and several other countries in Asia are following suit. An approval from U.S. regulators could open the door for new investors who want to get involved but don’t want to go through the hassle of actually owning cryptocurrency themselves.
Lightning Network
The Lightning Network is, essentially, a payment protocol that, in layman’s terms, allows for instant and (almost) free transactions of Bitcoin or Ethereum.
While cryptocurrencies like BTC and ETH are significant for larger transactions or long-term crypto investing, they aren’t ideal for daily use. That’s where the Lightning Network (L.N.) comes in!
You might have heard L.N. referred to as a “layer two solution,”—which means it operates on top of the existing blockchain network (which we call “layer 1”). So, for example, if you want to buy a cup of coffee with BTC or ETH using L.N. instead of the leading blockchain network, all the merchant will see is a typical transaction for USD 4.
The details about your wallet address and wallet balance are kept between you and the merchant; no one else can see them. The transaction is also much cheaper than using BTC or ETH by themselves—you don’t have to pay much at all because you don’t have to pay miners (the computers who verify cryptocurrency transactions).
DeFi (Decentralized Finance)
DeFi is the hottest new thing in cryptocurrency. As the name implies, it provides decentralized financial services and products. As a result, users don’t have to rely on traditional banks and financial institutions for loans, payments, or investing. Instead of relying on trusted intermediaries to perform these tasks, DeFi apps and smart contracts do them for you using blockchain technology.
While DeFi is a relatively new space in crypto, it has gained significant traction in recent years thanks to its potential as an alternative to traditional finance. The first practical application of this concept was MakerDAO’s creation: a decentralized stable coin platform that allows users to borrow against their holdings of other cryptocurrencies without an intermediary such as a bank or lender.
Polkadot
Learn about the most exciting cryptocurrency projects in 2022! Polkadot is a blockchain-based protocol that enables the interoperability of different blockchains. The Polkadot network comprises multiple parachains and a relay chain. Parachains are blockchains that can connect to the Polkadot blockchain. The relay chain supports transactions between chains, connects parachains, and provides shared security to them and governance mechanisms for decentralized management.
The protocol is being developed by the Web3 Foundation, which was founded in 2017 by Gavin Wood (co-founder of Ethereum), Peter Czaban (founder of Ocean Protocol), and Robert Habermeier. Wood also created Polkadot’s native token DOT.
Libra
Starting with the basics, Libra is a stable coin. It’s designed to have relatively low price volatility compared to other cryptocurrencies. This is accomplished by pegging the value of Libra to a basket of traditionally considered stable assets, such as the U.S. dollar, British pound, and Japanese yen.
Libra also runs on a permissioned blockchain, meaning only authorized companies will be allowed to run software for verifying transactions and creating new blocks on the chain. Finally, Libra is supported by an association of companies called the Libra Association, which Facebook helped found but did not own or control completely. Currently, the founding members include Visa and Mastercard and many other significant financial or online commerce companies.
Cryptocurrency is more exciting than it’s ever been. If you’re a cryptocurrency enthusiast, you’ve probably noticed that the popularity of these digital currencies is soaring. No longer are they relegated to computer programmers and cypherpunks—nowadays, everyone is in on the action. As a result, the future of cryptocurrency looks bright indeed.
What makes this trend so exciting? First, there’s an endless amount of innovation happening almost daily. It means that cryptocurrencies are becoming better and more widely used, but it also means that there are new developments all the time for investors to anticipate with excitement.
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