A Cryptocurrency enthusiast and a Blockchain fan who tries to learn and analyze the best Blockchain technologies.
Bitcoin and Its Failing Technology
Ever since the day Satoshi Nakamoto first introduced Bitcoin to the world, it has raised many eyebrows. Right from its ambitious dream of becoming a peer-to-peer transacting currency, Bitcoin has always garnered a skeptical perception from financial pundits to technological experts.
On analyzing the history of Bitcoin, one can see a shift from currency to an asset exhibiting store-of-value properties. This transition has probably left the technology of Bitcoin to play catch-up. In a world as fast-paced as ours, Bitcoin's technology is running behind by at least five years.
Energy efficiency and scalability are two of the most severe issues Bitcoin faces. If not addressed, these issues could very well dethrone Bitcoin.
POW or Proof of Work is the core technology behind Bitcoin, and without delving deep into the technology, one can ascertain the fact that POW is not in the best interest of today's world. Recent studies show that energy consumption from Bitcoin mining around the world could equal the energy consumption of a whole country.
Moreover, if Bitcoin is to fulfill its true goal and be the currency of the people, as it was supposed to, it has to be more scalable. And scalability is one of the reasons that has hindered the mainstream adoption of Bitcoin.
Here are some of the coins which have the technological potential to be the crypto market leader.
The current runner-up to Bitcoin has a great chance to replace Bitcoin at the top of the Cryptocurrency list. Even though Ethereum is currently running on the same technology as Bitcoin, it will soon shift to Proof-of-Stake or POS algorithm, a far more energy-efficient algorithm.
POS is a type of algorithm which aims at better decentralization. In the POS algorithm, instead of miners creating a new block, a single wallet holding a considerable stake will validate a transaction. And as there are no mining rewards, the validator will be rewarded with the transaction fees. Ethereum is preparing to go through a hard fork for the transition from POW to POS. And the same is set to happen sometime in 2019.
A transition to POS will make Ethereum more energy efficient. However, scalability is a whole different ball game, and the introduction of Sharding is to tackle this. As the name implies, Sharding breaks up the Ethereum chain into smaller groups. This breaking up significantly enhances the scalability of the network.
Hence with the transition to POS and the introduction of Sharding, Ethereum could very well become the cryptocurrency of the future and thus become the crypto leader by ousting Bitcoin.
Chainlink is a coin which recently shot to prominence after being mentioned in an article by google cloud services. Since then, the value of Chainlink has steadily risen, making itself a popular coin in the Cryptocurrency circuit.
Technically, Chainlink is a decentralized oracle service, which will act as a middleware for blockchain. It aims to provide interoperability between blockchains and make external data accessible for the blockchains.
Both of these are revolutionary in terms of other existing blockchain networks, as one of the most important challenges a user faces is the incompatibility of one blockchain network with the other. Moreover, the accessibility of external data to the tamper-proof smart contracts will itself be a major step for blockchain towards its connection to other legacy technologies.
The future always belonged to those who have solved the problems of today and Chainlink, if implemented in all its glory, could thrash some major roadblocks for blockchain as well as cryptocurrency and could catapult the technology to mass adoption, consequently giving Bitcoin a run for the money.
Quarkchain is a relatively new cryptocurrency. But that has not hindered it from becoming one of the highest-rated coins in terms of technology. Unlike Ethereum's planned upgrade, QKC is already using the Sharding technology and is on its way to achieving scalability in the ranges of 100000 TPS and more. Even though the Sharding technology used by QKC is similar to Ethereum's proposed upgrade, in contrast, QKC has also introduced additional features like Reshard to improve the scalability further.
Though the coin is in the early days of its development, with the technology that QKC uses, it has the potential to be the face of the Cryptocurrency market.
It might be amusing to hear a statement that a coin outside the first 50 coins in terms of marketcap will thump Bitcoin. But Elastos has all the makings of a great coin.
The makers of ELA want to build a blockchain-powered internet, for which it uses Side Chain Technology, which is a first of its kind with two blockchains running simultaneously inside a network. The two chains are Mainchain and Sidechain.
Mainchain is the center of the blockchain and is at the heart of the network, whereas the Sidechain will be used to run the Decentralized Apps(DApps), Smart Contracts, etc.
As amusing as this sounds, with a technology which can readily achieve the scalability of 100000 TPS, ELA could very well stroll past Bitcoin in the years to come.
The coin, with less than one year of development, has garnered immense popularity among crypto enthusiasts after a steady growth throughout the last year. With such growth, the HOT coin has achieved a considerable surge from its ICO price, which in turn enabled it to rise to the top 50 coins in terms of marketcap.
Holochain, the network on which the coin runs, uses a Distributed Hash Table (DHT), which is similar to the fundamental technology that backs BitTorrent. And delving deeper into the technical aspects of the coin and the network, one can even argue that it is not a blockchain-based project, as DHT concentrates more on distributed computing than decentralization, one of the core properties of a blockchain. However, in terms of scalability, Holochain can make one million TPS look like a cakewalk.
Thus when it comes to scalability, HOT is only rivaled by IOTA and with a unique technology to back its network, it could very well make a run for the number one spot.
Even though the five coins mentioned have the highest probability of rising to the top, there are some other coins which are also technologically just as brilliant but need more improvement to make a challenge for these coins. Some of those coins are Cardano (ADA), Zilliqa, Nano, Theta, Basic Attention Token, Status and Skycoin. Some of these coins lack technology, which they make up through adoption and utility.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
Veena on April 12, 2019:
Good one !