Did you miss Solana? Buy this cryptocurrency now
Hot Cryptocurrency Solana soared more than 11,000% last year. So you may be hesitant to invest in a player who has made such big wins. But with thousands of cryptocurrencies, you can easily invest in one that hasn’t exploded yet – and potentially enjoy a big boost in the future.
A player to consider is Peas (CRYPTO: DOT). Polkadot soared 278% last year. That’s a pretty decent increase. But he could clearly go higher, especially given his prospects and the gains from Solana and other rivals. Polkadot is a new player. It was launched in May 2020. And it recently rolled out a key element meant to fuel its growth. This is one of the reasons why this cryptocurrency is a good buy now. Let’s see the full story.
All about interoperability
Polkadot stands out from the crowd for one particular reason. This blockchain is about interoperability. Usually, in the cryptocurrency world, business takes place on a single blockchain – and data or tokens cannot be transferred to various other blockchains. Polkadot solves this problem. The network has a main chain – the relay chain – which handles transaction validation, security and coordination of the whole system.
Now here’s the exciting part: Polkadot also has parachains which are actually a series of parallel blockchains. Here, developers can build whatever they want, so they can actually build their own blockchain with a focus on decentralized applications (dApps), for example. And building blockchains is made easier. Developers can use the Polkadot development framework. This allows them to select pre-designed components, which makes the whole building process much faster than starting from scratch.
Bridges allow parachains and another similar component – parathreads – to communicate with other external blockchains. Like, the second largest blockchain in the world, Ethereum, for example. Polkadot completed the launch of parachains in December. Thus, we can expect more and more growth for Polkadot.
More good news: developers are flocking to this growing blockchain. Electric Capital’s recent developer report shows an increase in the number of developers on Polkadot from December 2020 to December last year – the number increased from 840 to 1,400. The report also showed that Polkadot has seen growth faster than Ethereum at certain key points in its history. The increase in the number of developers is a positive sign because it means more and more people are actually using the network – so this adds to the idea that Polkadot has a lot of real-world utility.
Polkadot’s structure also allows for transaction speed. And this is another important factor for a blockchain that aims to be among the future winners. Today, the network processes 1,000 transactions per second. But ultimately it can handle up to a million.
We’ve just started to see what Polkadot can do. But there is much more to come. The focus on interoperability could be important. The future of cryptocurrency may involve many winners, after all – and having a blockchain that can connect them could be crucial to everyone’s success. Polkadot’s transaction speed adds another bright spot to the picture.
All of this means that Polkadot may have what it takes to carve out a place in this market. So for aggressive investors, this could be a great buy right now.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end consulting service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.