Autor Cointelegraph By Marcel Deer

Crypto is going mainstream: Here’s how the future founders will build on it

Crypto is going mainstream: Here’s how the future founders will build on it

Uverejnil používateľ | apr 17, 2022 |

Crypto has long been criticized for its lack of inherent value. However, the shift toward contactless transactions amid the pandemic has emphasized the value of digital currencies and blockchain technology in the modern world. For this reason, merchants have been slow to adopt cryptocurrencies as a form of payment. As it gains widespread usage, however, we can expect to see more businesses accepting crypto in the future. The global pandemic has changed the way a lot of us do business. The shift away from cash and face-to-face transactions toward digital cashless ones has introduced many people to the convenience of paying digitally. So, it’s no surprise that crypto is starting to gain traction as a viable payment option — one that will only continue to evolve. While still in the early stages, large platforms such as PayPal, Visa and Mastercard have already started allowing clients to purchase and transact crypto through their platforms. PayPal can now be used to buy and transact crypto like Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).  Meanwhile, Visa allows users to conduct transactions with stablecoins on the Ethereum Network. Mastercard also announced the launch of its crypto card in late 2021 and is set to support most digital currencies in the years to come. Merchants who are still on the fence about accepting crypto can rest knowing that it is here to stay. The cases for and against crypto as a form of payment are slowly evening out, and more businesses will likely start accepting it in the near future. In addition, businesses can save on transaction fees when using crypto as a form of payment.

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What is the Algorand blockchain, and how does it work?

What is the Algorand blockchain, and how does it work?

Uverejnil používateľ | mar 5, 2022 |

What is Algorand?Algorand is a blockchain network created in 2017 by Silvio Micali, an MIT professor who won the Turing Award for his work in cryptography. Algorand is a decentralized permissionless blockchain protocol that anyone can use to develop applications and transfer value. The Algorand protocol is powered by a novel consensus algorithm that enables fast, secure and scalable transactions.Algorand addresses the common issues that most older blockchains have, specifically concerning scalability and consensus. The blockchain uses Pure proof-of-stake (PPoS), a consensus protocol that selects validators at random according to the weight of their stake in ALGO coins.What is Algorand trying to solve?The Algorand protocol is designed to solve three of the biggest problems most blockchains face: security, scalability and decentralization. Dubbed as the “blockchain trilemma,” the Algorand network claims to address the following three major issues. SecurityThe Algorand protocol is secure against malicious attacks, making it ideal for transacting, holding high-value assets and building secure enterprise applications. It maintains security on both network and consensus protocol levels and protects individual users’ accounts. ScalabilityThe Algorand protocol can handle a large number of transactions per second, making it a more scalable solution than Bitcoin or Ethereum. Algorand’s consensus protocol does away with the need for computational power used in Bitcoin to solve cryptographic problems. Instead, the protocol’s computation cost per user is only used to generate and verify signatures, as well as operations requiring simple counting. According to Algorand, it can “scale to millions of users and sustain a high transaction rate without incurring significant cost to participating users.”DecentralizationAlgorand is entirely decentralized with no central authority or singular locus of control. Transactions are verified by participating nodes in the network and each node has an equal say in decision-making. This makes Algorand a very decentralized system.Everyone on the network also has a chance of being part of the committee of users that approve each block because the selection is both random and confidential. There is no fixed committee and its nodes are run by people from all over the world.How does Algorand work?What sets Algorand apart from other blockchains is its use of PPoS, a consensus algorithm that employs a Byzantine agreement protocol. Should a node be compromised, staked the native token ALGO owned by participants in the network would automatically be protected with unique keys.Bitcoin’s consensus mechanism, proof-of-work (PoW), requires large amounts of energy and computing power to create and validate new blocks. PPoS, on the other hand, allows the creation and validation of new blocks in a faster and more efficient manner. This is done by randomly selecting ALGO holders to validate and approve each block in the chain. A new group, or committee, is selected for each new block. Through the PPoS protocol, only users with large holdings of ALGO can theoretically engage in malicious activities that could potentially compromise other users’ security. However, since the system is based on codependency among participants, malicious activities would also result in a deterioration of their ALGO. Hence, such malicious activity would not be rewarding for any majority holder. Algorand can process 1,000 transactions per second and all transactions will be final and instantaneous. Algorand also has a fixed supply of 10 billion tokens to add an inflation-resistant mechanism to the network. The majority of these tokens are currently locked up and have yet to be distributed.Algorand protocol structureThe Algorand protocol is built on three fundamental concepts:Transactions: Transactions are the basic unit of account in the Algorand network. They are used to transfer value and are verified by all participating nodes in the network.Blocks: Blocks are groups of transactions collected into a single unit and verified by the consensus algorithm.Consensus: The consensus algorithm is responsible for verifying blocks and ensuring that they meet the requirements of the Algorand protocol. It also rewards users who participate in its operation.Algorand staking mechanism: Pure proof-of-stakeUnder Algorand’s PPoS approach, the influence held by a user on the choice of a new block is proportional to the number of tokens they have in the system, also called their stake. Each user has a chance to be chosen with the weight of their proposals and votes being directly related to their stake. Users are selected randomly and secretly for the purpose of proposing blocks and voting on such block proposals. Through this approach, the network’s security is tied to the honesty of the majority of the users in its economy. As long as most of the money is in honest hands, the system will remain secure.This approach is in opposition to other consensus mechanisms like PoW, DPoS or BPoS wherein small groups within the economy are responsible for the whole system’s security. By principle, a small fraction of users can prevent other users from transacting with these approaches.Algorand’s approach makes it virtually impossible for holders with smaller stakes in the system to harm the whole network. Meanwhile, majority holders would also not dare to act maliciously, as such actions will result in the devaluation of their own assets and a reduction in the currency’s purchasing power. Algorand block production under PPoSNew blocks are constructed in two phases under Algorand’s PPoS mechanism. During the first phase, a single token is selected at random. The owner of this token is the user in charge of proposing the next block. During the second phase, 1000 tokens are selected randomly out of all the tokens in the system. The owners of these tokens make up the phase-2 committee, and they are in charge of approving the block proposed by the user in phase 1.Related: What is cryptocurrency? A beginner’s guide to digital currencyIt is possible for a committee member to be chosen more than once. This also means that a member will have more than one vote in the committee when approving the next block.The second phase in Algorand’s block production process was put in place to combat any percentage of bad actors. By choosing 1000 tokens at random, the malicious intentions of these bad actors will be trumped by the majority and act in accordance with the rules for the welfare of the network.Algorand’s native cryptocurrency: ALGOThe native currency of the Algorand network is called ALGO. ALGO tokens are used to pay for transaction fees and reward users who participate in the network’s consensus process. Transactions with ALGO happen in less than four seconds, regardless of how many transactions you do in a day. Transaction fees are also minimal. Unlike Ethereum, which is notorious for high gas fees, Algo transactions cost very little.How can I buy ALGO cryptocurrency?There are several methods for purchasing ALGO. You may buy it directly from another individual in person or over the internet, as you would with any other cryptocurrency. Alternatively, you may look for a crypto ATM near you that offers ALGO. However, crypto ATM rates can be prohibitive, and there’s no assurance that you’ll be able to locate a counterpart willing to make the trade.The easiest way to buy ALGO is on a cryptocurrency exchange. Some popular exchanges that offer ALGO include Binance, Kraken and Coinbase. You can buy ALGO with a credit or debit card on these exchanges. To do so, you first need to get a crypto wallet to hold the ALGO. Some wallets that support ALGO are Pera Wallet, My Algo, Coinbase and Ledger. Once you’ve set up your wallet, you can now fill your wallet by finding an exchange that supports ALGO.Set up an account on the exchange if you already do not own one and get it verified. Select “Algorand” from the list of assets to begin your trade. Input the fiat amount to buy ALGO coins and preview your purchase before you finally submit.

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What is the Near Protocol, and how does it work?

What is the Near Protocol, and how does it work?

Uverejnil používateľ | feb 19, 2022 |

What is Near protocol blockchain?Near Protocol is a decentralized application (DApp) platform that focuses on usability among developers and users. As a competitor of Ethereum, NearProtocol is also smart-contract capable and a proof-of-stake (PoS) blockchain. Near uses sharding technology to achieve scalability, a core aspect discussed later. The native token, NEAR, is used for transaction fees and storage on the Near crypto platform. Tokens can also be used for staking by NEAR tokenholders who wish to become transaction validators and help achieve network consensus. Near was built by the NeaCollective and conceptualized as a community-run cloud computing platform designed to host decentralized applications. It was also built to be both developer and user-friendly, hence having features such as account names that are human-readable (instead of cryptographic wallet addresses).How does Near Protocol work?Decentralized applications have boomed in the crypto community, with DApps that run the gamut from games to financial services. However, it has also become apparent that scalability remains a problem in most blockchains.The issue of scalability is common among blockchains, especially among older ones such as Bitcoin and Ethereum. The challenges are mainly brought about by blockchains’ difficulty in handling large numbers of transactions at fast speeds and manageable costs. Projects such as Near seek to address this issue by building an entirely new blockchain using a different architecture. Near’s solution to the problem was implementing sharding.By using the sharding strategy, Near is able to break up the blockchain into smaller more manageable segments. This reduces the burden on the network by reducing computational load, resulting in an increased throughput of transactions. As mentioned earlier, the Near protocol uses a PoS system. Nodes interested in becoming transaction validators stake their NEAR tokens to be considered for participation. Token holders may also delegate their stake to their chosen validator if they do not wish to operate a node. Generally, validators with larger stakes hold more influence in the consensus process. Validators on Near are chosen via an auction system and are chosen at every epoch, typically a 12-hour interval.Meanwhile, DApps can be built on Near, just like on Ethereum. This is made possible by Near’s cloud infrastructure, which combines serverless computing and decentralized data storage. Nea operates using hundreds of globally-located servers.Unique features of Near ProtocolSharding strategyNodes, in any blockchain, typically have three main functions: processing transactions, communicating valid transactions and completed blocks with each other and storing the history of the network’s transactions. As a network grows and becomes more congested, these functions become more difficult for the nodes to manage.Nea uses a sharding approach that enables the network’s capacity to grow even as more nodes join. High network utilization results in network nodes dynamically splitting into multiple shards. Computing is then parallelized over these shards, reducing the computational load required of each node.Through sharding, nodes are not required to run the entirety of the network’s code (which is the case with Bitcoin nodes), just the code relevant to its shards. Near Protocol assumes transactions will touch multiple shards, which is the default behavior for most smart contracts. Focus on decentralizationTo maintain true decentralization, a network should be permissionless, meaning that potential node operators should be able to join freely (as opposed to incentivizing pooling). Near uses threshold proof-of-stake, a staking technique considered both fair and predictable. This prevents powerful validators from pooling and encourages wide-scale participation among network members.Usability-first approachThe Near Protocol has a usability-first approach, following a “progressive security” model that allows developers to create a user experience resembling web experiences. Near understands the need for usability first and foremost, as developers will likely only create apps that offer value and usability to their users. Near offers easy subscriptions, simple onboarding, predictable pricing and familiar usage styles to users as part of its efforts to pursue user-centricity.GovernanceNear Protocol’s governance also allows rapid protocol improvement while retaining the provision of helpful input and supervision towards the community to ensure the protocol’s independence. A part of Near’s objectives is to retain community-led creativity through efficient execution, decision making and adequate representation within the network. What are the projects based on Near?Below are some of the popular projects on Near:MintbaseMintbase allows users to create and sell Nearnonfungible tokens (NFTs). Assets range from crypto art to event tickets and more. Users can mint these assets as NFTs on the platform and put them up for sale via their NearNFT marketplace or other NFT marketplaces.Minters can create a smart contract and limit minted token transferability, thereby safeguarding against fraud or illegal transfers. Mintbase focuses on supporting the creation of different digital assets, unlike other platforms that focus on just one category. Mintbase switched from Ethereum to Near, earning NEAR yet another point on the Near vs. Ethereum debate. This switch was for no other reason than Ethereum’s ridiculously steep gas fees resulting from network congestion. Mintbase called it quits with Ethereum when store creation fees rose to hundreds of dollars, resulting in the platform advising its users to wait for gas fees to drop before creating their stores. ParasParas was designed to provide a unique solution: facilitating the validation and exchange of aging traditional collectible cards. Paras validates ownership via Near through fast inexpensive transactions.Simply put, it’s a digital card marketplace built on Near that seeks to reduce the burden on collectors to maintain their collectibles by ensuring that these do not wear out over time. Artists and collectors are also given free access to the digital collectibles market. NPunksNPunks is Near Protocol’s own version of highly successful projects like CryptoPunks, Tpunks and SolPunks. Consistent with the original Punks project, 10,000 unique NPunks will have their own rarity traits. The collection will have 111 bots, 88 zombies, 24 apes and 9 aliens.Fair participation is ensured by giving everyone the chance to buy an NPunk. Purchases are made randomly with the buyer’s identity kept secret until the transaction is completed. Users can then sell their NPunk in the secondary market after it has been minted. Why use the Near Protocol?Users are typically drawn to Near owing to its unique sharding technology that facilitates fast and secure transactions at lower costs. On top of this, developers choose Near to build apps that require high volumes of activity. Likewise, Ethereum developers planning to build bridges to their application to Near can also use its layer-2 solutions. Near Protocol investors can also add it to their investment portfolio and bank on Near’s unique solution to scaling: sharding.The NEAR token, Near Protocol’s native asset, has various use cases. Each token is identical to Ether (ETH) and can be used for the following:The tokenomics of the NEAR token can also be viewed in detail here.

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What is Avalanche Network (AVAX) and how does it work?

What is Avalanche Network (AVAX) and how does it work?

Uverejnil používateľ | feb 12, 2022 |

What is Avalanche Network (AVAX)?Launched in 2020 by Ava Labs, Avalanche is a blockchain platform that is smart contract-capable. Avalanche aims to deliver a scalable blockchain solution while maintaining decentralization and security, focusing on lower costs, fast transaction speeds, and eco-friendliness.Avalanche quickly became popular in the cryptocurrency space, with Avalanche TVL currently worth $8.41 billion and still rising across Avalanche decentralized applications (DApps). Avalanche is powered by its native token Avalanche (AVAX) and multiple consensus mechanisms. With Avalanche, users can create an unlimited number of customized and interoperable blockchains. To operate a blockchain on the Avalanche coin, AVAX, one must pay a subscription fee. What is Avalanche crypto used for?The native token AVAX is a utility token. AVAX serves as the Avalanche ecosystem’s medium of exchange. In other words, the token is used as currency within the network, typically for fee collection in transactions, incentives and many other use cases.It is also used for staking AVAX, which serves to secure the network. Stakers are then rewarded with more AVAX. Some users stake AVAX to earn passive income on the network. History of AvalancheWhen the Bitcoin blockchain was launched in 2009, it paved the way for the design and invention of blockchains that came after it, including Ethereum. With today’s wide-scale use of nonfungible tokens (NFTs) and decentralized finance (DeFi) protocols, however, the technical limitations of the original blockchain design became more apparent. Bitcoin’s proof-of-work (PoW) consensus, for example, inhibits decentralization to an extent due to its resource-intensive validation process. Transactions also tend to be slower. Most Ethereum apps today use layer-2 scaling solutions to address these issues. By using layer 2, transactions are taken away from the main chain. They are then rolled in neat “bundles,” which are sent back to the Ethereum chain, taking pressure off of Ethereum. Although effective, this solution adds layers of complexity, making the network open to certain security threats. So, how can a blockchain keep everything within a layer-1 protocol that is decentralized and scalable but also secure?Enter Ava Labs, the founders of Avalanche, who came up with a brilliant three-blockchain solution to address the top problems that plague blockchains. In September 2020, Ava Labs US launched the Avalanche blockchain after raising $6 million during their financing round. Their subsequent token sales — private and public — amounted to $48 million. Who is behind Avalanche (AVAX)?The three people behind Avalanche are Kevin Sekniqi, Maofan “Ted” Yin and Emin Gün Sirer. A pseudonymous group called Team Rocket first released fundamental information about the protocol in May 2018 on the InterPlanetary File System. A group of researchers from Cornell University then developed the technology, led by Cornell professor of computer science and software engineer, Emin Gün Sirer. He was assisted by two of his doctoral students: Maofan “Ted” Yin and Kevin Sekniqi.The AVA codebase for the Avalanche consensus protocol became open-source in March 2020, making it available to the public. Avalanche’s initial coin offering (ICO) ended in July of 2020, followed by the launch of Avalanche in September of the same year. What problems does Avalanche (AVAX) solve?As mentioned earlier, Avalanche was built to address many of the issues most blockchain networks face. By providing an alternative to networks such as Ethereum, platforms like Avalanche work to combat centralization within the crypto space. Two of the top issues that Avalanche addresses are:CongestionAvalanche was deliberately designed with scalability in mind. On par with top-tier payment processors like PayPal and VISA, Avalanche has sub-second transaction times. Avalanche is also tremendously powerful and efficient, having the capacity to process up to 6,500 transactions per second with sub-second finality. This is a vast improvement on Ethereum’s limitations in terms of the number of transactions that can be processed per second. Low feesConsidered by many as an Ethereum competitor, Avalanche also trumps Ethereum in terms of gas fees. Fees on Avalanche are more affordable than Ethereum by a wide margin. Fees on the network are used for various purposes such as for creating and minting assets, staking, transaction fees and blockchain creation, after which these fees are burned, permanently reducing the number of AVAX within the platform.Used fees are burned because “$AVAX is a hard-capped, scarce asset used to pay fees and secure the network.” Avalanche shared on Twitter. Burned AVAX can be checked on burnedavax.com.How does Avalanche (AVAX) work?In an effort to continuously develop and improve on blockchain technology, Avalanche creators sought to develop a solution to some of the common problems of older blockchains like Bitcoin. Some of these are a lack of interoperability and problems with scalability and usability. Avalanche tackles the problems mentioned above through a unique approach: using three separate blockchains. Avalanche claims to be “the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality.”Let’s take a closer look at the three blockchains that make up the Avalanche mainnet:X-Chain: This blockchain is used for managing assets. It uses the Avalanche consensus protocol.C-Chain: This blockchain is used to create smart contracts. It uses the Snowman consensus protocol.P-Chain: This blockchain is used to coordinate validators. It also uses the Snowman consensus protocol.The Avalanche consensus protocol checks validators’ transaction confirmations randomly by having all nodes work parallel with each other. The idea is that repeatedly doing random checks increases the probability that a transaction is true/valid. The Snowman consensus protocol works pretty much the same but uses blocks in a linear process.Benefits of Avalanche (AVAX)The main benefits of Avalanche can be found primarily in the way it was built. Avalanche founders found a way to address the common problems of blockchains through the network’s unique structure.InteroperabilityOnly a few blockchains accommodate the trading of various forms of cryptocurrency and data with other platforms. Avalanche facilitates interoperability by allowing different blockchains to share data and effectively “interoperate” with one another.ScalabilityMining Bitcoin (BTC), for example, requires tremendous energy and computing power. Ethereum can only process 15 transactions per second. While powerful and highly valuable, these blockchains are difficult to scale because of such limitations. Avalanche, on the other hand, was built to be scalable and boasts sub-second transaction times and incredible processing capacity.UsabilityOne of the concerns in adopting any technology is usability or the extent to which the software or technology is easy to use and implement in various applications and use cases. Avalanche has proven useful in various cases and is picking up speed in the crypto community at a pace that can rival Ethereum.Where and how to buy AVAXUpholdUphold is one of the top crypto exchanges in the United States that facilitates trading needs across various cryptocurrencies including AVAX. The platform also offers easy-to-use features that allow users interested in buying AVAX to do so intuitively.Uphold has both desktop and mobile apps and a customizable trading view for users to feature the assets they trade the most. New traders, in particular, prefer using Uphold because of its simple, modern interface that facilitates easy navigation across both desktop and mobile. BinanceKnown globally as one of the most trusted cryptocurrency exchanges, Binance allows users to purchase AVAX easily. Users who wish to purchase AVAX on Binance can enjoy lower exchange fees, as well as increased liquidity that makes it easier to buy and sell quickly. Binance users in Australia, Canada, the United Kingdom, Singapore and other international locations can purchase AVAX. Currently, U.S. residents are prohibited from purchasing AVAX on the platform.BitPandaBitPanda is well-known in Europe as a reputable exchange for buying and selling Bitcoin. Currently, the platform also offers trading of various cryptocurrencies and purchasing assets such as precious metals. AVAX is the easiest to purchase on BitPanda, but it is currently open for European Union residents only. Gate.ioGate.io is another reputable trading platform that provides a user-friendly interface that even newbies to trading can easily use. It also offers advanced charts for more technical traders. The platform is a cryptocurrency exchange that carries a wide range of altcoins including AVAX. Gate.io is notably known for its staunch stance against market manipulation. It is open to U.S. residents, except for those residing in New York and Washington State.

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How to pick or analyze altcoins?

How to pick or analyze altcoins?

Uverejnil používateľ | jan 23, 2022 |

What are altcoins?The word “altcoin” is derived from “alternative” and “coin.” Altcoins refer to all alternatives to Bitcoin. Altcoins are cryptocurrencies that share characteristics with Bitcoin (BTC). For example, Bitcoin and altcoins have a similar basic framework. Altcoins also function like peer-to-peer (P2P) systems and share code, much like Bitcoin.Of course, there are also marked differences between Bitcoin and altcoins. One such difference is the consensus mechanism used by these altcoins to validate transactions or produce blocks. While Bitcoin uses the proof-of-work (PoW) consensus mechanism, altcoins typically use proof-of-stake (PoS). There are different altcoin categories, and they can best be defined by their consensus mechanisms and unique functionalities.Here are the most common types of altcoins:Mining-basedMining-based altcoins use the proof-of-work method, most commonly known as PoW, which allows systems to generate new coins by way of mining. Mining entails solving complex problems to create blocks. Monero (XMR), Litecoin (LTC) and ZCash (ZEC) are all examples of mining-based altcoins. StablecoinsStablecoins aim to reduce the volatility that has marked crypto trading and use since the beginning. The value of stablecoins is, therefore, pegged to the value of a basket of goods, like precious metals, fiat currencies or other cryptocurrencies. The basket serves as a reserve in case the cryptocurrency encounters problems. Dai (DAI), USD Coin (USDC) and Tether (USDT) are all examples of stablecoins. Security tokensTrue to its name, a security token is similar to traditional securities traded in stock markets. They resemble traditional stocks and represent equity, either in the form of ownership or dividends. Security tokens attract investors because of the high probability that their price will appreciate quickly.MemecoinsMemecoins are called such because they represent a silly take on well-known cryptocurrencies. They are typically hyped by celebrities and popular influencers in the crypto space. Popular meme coins Dogecoin (DOGE) and Shiba Inu (SHIB), for example, often have their prices driven up by Elon Musk, Tesla’s CEO and well-known crypto enthusiast.Utility tokensUtility tokens are used to provide services like rewards, network fees and purchases within a given network. Utility tokens do not offer equity, unlike security tokens. Filecoin (FIL), for example, is a utility token used to purchase storage on a decentralized storage network. How do you evaluate altcoins?​Altcoin fundamental analysis involves looking at and evaluating all available information on an altcoin. It involves looking at the cryptocurrency’s use cases and its network, as well as the team behind the project, to fully understand and evaluate the best altcoins to buy. When analyzing altcoins, or any cryptocurrency for that matter, the goal is to understand whether the asset in question is overvalued or undervalued. Overvalued assets should be avoided, whereas undervalued assets are more ideal. This is because overvalued assets will likely underperform and dip back to their real value. Undervalued assets, on the other hand, have more potential for growth and are consistently profitable. A thorough analysis will help you make the best decision concerning your investment decisions. Here are some helpful guidelines on how to analyze cryptocurrency before investing:Step 1: Analyze the whitepaper and find the value propositionScrutinizing a token’s whitepaper will provide a lot of relevant information such as its use cases, goals and the team’s vision for the project. The white paper must give you a good picture of how the altcoin will provide value for its users.The value proposition for Bitcoin, for example, is as follows: “a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on a peer-to-peer network without the need for intermediaries.”An altcoin’s value proposition can guide you as you continue to analyze other information about it. Step 2: Look for increasing demand and stable (or decreasing) supplyLooking at supply and demand is one of the best ways to assess your next crypto investment. Now that you’ve gotten a clear picture of how the altcoin adds value to its users, it’s time to look at how it navigates supply and demand.Simply put, the altcoin should have incentives that will facilitate the increase of demand in such a way that supply is continually decreasing or stable. When demand outpaces supply, prices go up, thereby fueling even more demand.To do this, you can access resources like Cointelegraph’s Price Indexes and Market News, as well as Coin 360’s Heatmap and CoinMarketCap.Step 3: Assess the team and stakeholders behind the projectNow that you have a good understanding of what the project can offer, it’s also important to thoroughly assess the team behind the project. You can find information about the team on the project’s white paper, but try to do independent research on them as well. You can check out the official project site’s team page as well as their LinkedIn profiles which they should have made public and accessible to all.Ask the following questions when looking into each member’s background:Have they worked on other reputable and successful projects in the past?What are their credentials?Are they reputable members of the crypto community and blockchain ecosystem?The goal is to find if the team behind the project is experienced and composed of experts who know what they are doing. You can look at on-chain analytics platforms and blockchain explorers to supplement your research regarding this. You can also sniff around their social media profiles or check out Twitter for conversations they engage in.Ethereum, for instance, has such a strong investment community because every individual working on Ethereum creates value for Ethereum holders. Despite issues such as high fees and slow transactions, developers, community builders and other top talents still want to go onboard with Ethereum-related projects. Platforms like AAVE and OpenSea​, for example, are built on Ethereum. The logic behind ensuring a strong core team backing the project is because it creates a ripple effect. A project with a strong talented team attracts even more credible forward-thinkers, thereby allowing even more projects and improvements to be built upon the platform, much like Ethereum. These people strive to continually improve on available platforms and initiatives related to the project, thus creating even more value for currency holders. Which altcoin platforms have the most potential? When it comes to altcoin investing, there are a variety of options you can choose from. However, it’s always prudent to know which ones have the most potential to ensure you will be making a smart investment.Ethereum: There’s a reason why Ethereum is dubbed by many as the “King of Altcoins.” Created in 2013 by Vitalik Buterin and co-founders, Ethereum is a smart contract platform used to create decentralized applications (DApps). The founders engineered Solidity, Ethereum’s very own programming language for smart contracts. The majority of the current decentralized finance space relies on Ethereum’s blockchain, while the native token Ether (ETH) continues to evolve in its usefulness by the day.Chainlink: Chainlink takes smart contracts to another level by incorporating real-world data. Thanks to Chainlink, Ethereum smart contracts can now make calls to other application programming interfaces, as well as act on global occurrences and other asset prices. Chainlink’s value continues to soar while it brings onboard valuable stakeholders, including former Google CEO Eric Schmidt as one of its advisers.Stellar Lumens: Stellar aims to unite global banking systems via its decentralized platform. As such, it uses disconnected payment methods like Alchemy Pay and Single Euro Payments Area. The Stellar network then connects such systems via a decentralized ledger. In competition with Stellar is Ripple, whose run-in with SEC has made it vulnerable. This places Stellar in a prime position to take the reins at becoming the top global payment network.Aave: Aave is already one of the top lending protocols today and continues to offer security and anonymity to borrowers. Because of its popularity, borrowers are required to offer greater collateral than the amount they are borrowing. The collateral is safely held in escrow throughout the duration of the loan. In the event of a default, the lender is automatically paid via the smart contract.

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