The 5 blockchains of 2021: Solana, Cardano, Terra, Avalanche and Polygon

After Ethereum and Bitcoin, which continue to dominate the crypto market, the 5 blockchains of 2021 have been: Polygon, Avalanche, Terra, Cardano and Solana. The year that is about to end has been the consolidation of these five blockchains, due to their performance and possibilities. The growing concern about sustainability and the high gas fees that must be paid to operate on the Ethereum network have turned the gaze of developers and users towards Solana or Avalanche. Blockchains with more sustainable consensus protocols and better performance in some respects than the Ethereum network.

The 5 blockchains of 2021

5. Polygon (MATIC)

Due to the problems suffered by the Ethereum blockchain, this project that proposes a parallel network has become very popular among users and companies in recent months. The price of Polygon’s cryptocurrency, MATIC, has grown by 14,740% in the past year and has reached a market capitalization of nearly $19 billion. At the closing of this edition, the price of MATIC is $2,55.

In a way, Polygon is everything that Ethereum intends to be with Ethereum 2.0. It is a project that, in addition to correcting Ethereum’s processing capacity problems, uses Proof-of-Stake (Pos) as a consensus mechanism. Polygon offers a much more intuitive architecture for developers, making it a more attractive network for inexperienced users. Polygon does not seek to change the original layer of the Ethereum blockchain, but rather to help Ethereum expand in size so that developers can bring products to market faster.

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Polygon’s main chain is a blockchain that uses Proof of Stake (PoS) as a consensus method. A system based on the economic participation of users who have protocol tokens. In this case, MATIC. The validator nodes are randomly selected among the users who have MATIC and the users with more reservations have more chances to be chosen to validate transactions and vote on network updates.

Currently, Polygon is used by many blockchain companies and users for the development of operations. According to data from Polygonscan Y, On Saturday, October 2, the number of active addresses on Polygon exceeded the number of active addresses on Ethereum for the first time.

4. Avalanche (AVAX), 2020

The price of the Avalanche cryptocurrency, AVAX, grew by 3,239% in the last year. It started 2021 trading around $3 and today it trades at $1o668. Avalanche is an open and programmable smart contract platform for decentralized applications. Like Cardano (ADA), Solana (SOL) and others, Avalanche’s goal is to compete with the Ethereum blockchain in the development of smart contracts. However, unlike the two mentioned blockchains, Avalanche has the advantage of its compatibility with the Ethereum Virtual Machine (EVM). In other words, the Avalanche Blockchain can host applications developed in Ethereum, but with additional advantages.

One of the great advantages is scalability. The Avalanche blockchain has the capacity to carry out 4,500 transactions per second, far exceeding Ethereum, which allows 14. Also, transactions carried out on the Avalanche blockchain take less than a second to confirm. On the Ethereum blockchain the time is 14 seconds. The second big advantage over Ethereum is that the implementation of smart contracts in Avalanche costs only a tenth of what they cost in the network created by Vitalik Buterin. Transaction fees on Avalanche are based on Ethereum’s dynamic fees (EIP-1559), setting a gas fee limit and a limit on gas “tip”. As a result, Avalanche rates are much cheaper.

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3. Earth (LUNA), 2019

Terra has been one of the big surprises of 2021. The Terra cryptocurrency price is up 15,286% in the last year. At the beginning of the year, it was less than $0.5 and is currently trading at $86,23. Terra is a stablecoin-focused blockchain protocol that features two cryptocurrencies: the LUNA token and the UST stablecoin. The LUNA token is used as collateral to achieve price stability of the UST stablecoin.

What is the Terra blockchain and why is its LUNA cryptocurrency growing so much

Unlike other stablecoins, such as Tether, whose price is directly pegged to the dollar, the Terra platform uses an elastic monetary policy to maintain the stability of its cryptocurrency. The process is similar to that of the DAI stablecoin, but done in reverse. While with DAI you have to collateralize the loan by creating new DAI, in Terra you have to burn the LUNA tokens. DAI expands the monetary base and LUNA reduces it. That is, to create new UST, you have to burn the equivalent amount in dollars of LUNA.

Mirror Protocol and Anchor Protocol are the two DeFi protocols that have catapulted the success of Terra. Mirror Protocol (Mirror Protocol) allows you to create synthetic assets that reflect the price of an underlying asset. That is, it allows you to create assets that reflect the price of any real-world asset, such as gold, although it is specially designed to represent shares of the US stock market. Anchor Protocol (Anchor Protocol) is a savings platform based on the Terra blockchain that provides its users with returns with low-volatility assets (stablecoins).

2. Cardano (ADA), 2017

It could be said that the success registered by the Cardano blockchain during this year was an announced success. Its founder, Charles Hoskinson, was also a co-founder of the Ethereum blockchain. The rapid growth that the summer of 2021 experienced surprised everyone. The price of the Cardano cryptocurrency (ADA) grew by 740% in the last year, reaching a capitalization of almost 50,000 million dollars. ADA is currently listed at $ 1,41.

Cardano was launched in 2015 as an alternative to Ethereum. Throughout all this time it has become a scientific project, based on research. But also in the creation of prototypes that allow discovering and solving the main problems presented by blockchain networks. The Cardano blockchain, based on the Proof of Stake (PoS) protocol, is structured in several layers or updates that are activated sequentially. Each of these layers, as explained by the Cardano Roadmap, will deliver a series of new functionalities to achieve a robust, balanced and accessible network for all.

In this sense, investors see in it capabilities that Ethereum does not have. Cardano, the blockchain where ADA is developed, pursues objectives similar to those of Ethereum, but with a friendlier and more flexible ecosystem and digital infrastructure. Like Ethereum, Cardano also allows the creation of decentralized applications and smart contracts. To do this, it uses an infrastructure that offers scalability, performance, flexibility, interoperability and economy.

1. Solana (SUN), 2020

Together with Terra, it is the blockchain that has evolved the most throughout 2021. In fact, its great impact has caused it to rank as the fifth cryptocurrency by market capitalization. In the last year, the price of SOL, Solana’s cryptocurrency, has grown by more than 10,000%, reaching a current price of $175.

Solana, the cryptocurrency whose value has skyrocketed thanks to NFTs

Solana is a decentralized blockchain built to enable easy-to-use and scalable applications for everyone. That is, an open source blockchain that facilitates the development of decentralized applications (DApps). Solana’s technology has been developed from the ground up to offer a fully scalable platform. Solana defines itself on its website as the fastest blockchain in the world, with more than 400 projects, ranging from DeFi to NFTs.

The project was founded in 2017 by Anatoly Yakovenko through an ICO, which raised more than 25 million dollars. The main proposal of the project was to create a blockchain with a new transaction system called Proof-of-History (PoH). A complementary algorithm to Proof of Stake, which encodes the time at which a transaction is made on the blockchain. In this way, it allows nodes to trust block timestamps and verify the timing and order of transactions taking place on the network. This prevents validators from having to communicate with each other, significantly reducing the consensus time

Solana’s price did not begin to grow exponentially until last August 15, which was when the NFTs project was launched: Degenerate Ape Academy. This collection of NFTs, which draw monkeys in disguise, sold out 10,000 collectibles in just 8 minutes. Each of these “monkeys” went on the market at a price of $336. Today, some of these apes are worth more than $7 million. It also has some of the most famous DApps of the moment, such as Phantom or Audius. Phantom is described on its website as a crypto wallet that allows you to store, send, receive, stake, and exchange tokens on Solana. Audius is a decentralized music platform designed to compete with Spotify and all other music platforms today.

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The 5 blockchains of 2021: Solana, Cardano, Terra, Avalanche and Polygon

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