New cryptocurrency projects are constantly appearing on the market, which often creates an opportunity for investors. Many of these projects succeed and generate profits for those who decide to support them, while others fail very quickly. In today’s material, several projects that have already gained popularity were analyzed, such as: Avalanche, Solana, Polygon or Kusama. How to invest in these cryptocurrencies? One of the brokers that has recently introduced CFDs on these projects into its offer is TMS Brokers, and more information about it can be found In this article.
Avalanche – How does Avalanche work and what is it?
Avalanche. The project was launched in September 2020, although its origins may date back to 2018. The author of the project is a computer scientist and professor at Cornell University – Emin Gun Sirera. Avalanche is a blockchain, and it was created to combine the possibilities of scaling and fast confirmation times through the Avalanche consensus protocol. The system is based on three interacting blockchains: X-Chain, C-Chain and P-Chain, which indirectly makes the platform also available for commercial applications. One of the biggest rivals and competitors, if not the biggest, remains Ethereum, which dominates DeFi. Interestingly, Avalanche supports Ethereum Virtual Machine (EVM), but it uses a different mechanism to secure the network. In the case of Avalanche, it is possible to communicate between different networks, which differentiates it from certain networks. The transaction is possible through this network in just 3 seconds, according to Ava Labs, the platform can handle up to 6.5 thousand. transactions per second.
Solana – How does Solana work and what is it?
Solana is a programmable blockchain – it supports smart contracts, decentralized applications, uses proof-of-history algorithm and is the fastest programmable blockchain. It uses proof-of-stake mechanism with low barrier to entry. Solana works based on an adapted proof-of-stake model, with functions such as BFT tower, Gulf Stream, Archives, Pipelining, Turbine and Cloudbreak. The network is efficient and fast, the system has the ability to track the order of events, thanks to historical proof it works on the principle of a cryptographic clock and has the ability to work as a decentralized clock (proof of -work), transactions are timestamped. Solana can process around 50,000 transactions per second. The creator of Solana is Anatoly Yakovenko, who in 2017 announced the start of work on the platform. Ethereum and Cardano are a strong competitor. Since the launch of the mainnet (2020), the SOL token has been among the top ten cryptocurrencies by market capitalization.
Polygon – How does it work and what is Polygon?
Polygon (MATIC) – Ethereum token, it allows the operation of the Polygon network. The goal of the project is to provide cheaper and faster transactions on Ethereum using layer 2 side chains. Competition: Polkadot and Cosmos, the essence of the project is scalability – it is very flexible. The proof-of-stake blockchain has its own structure, native dApps and nodes, but transactions are settled on the Ethereum mainchain. With Matic cryptocurrency, you can pay transaction fees, its supply is around 6.3 billion, and the maximum is 10 billion. At the time of writing, the cryptocurrency exchange rate was 3.17 PLN ($0.72).
Kusama – How does it work and what is Kusama?
Kusama – A blockchain built with Substrate. It was created in 2016 as a project of Ethereum co-founder Gavin Wood, along with Peter Czaban and Robert Habermeier. Kusama is a project founded by the WEB3 Foundation, and its native token is KSM, which can be staked. It is a faster version of the Polkadot network, although their mechanics are very similar to each other. Kusama is mainly used for network validation, naming validators, and pairing a chain or thread pair. At the time of writing the article, the exchange rate of Kusama is 83.85 USD and 371.67 PLN.
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