Blockchain developers just can't get enough of the Proof-of-Stake protocol. They are implementing it on new and upgraded blockchain ecosystems for its numerous advantages, such as scalability, interoperability, and smart contract capabilities.
As a cryptocurrency investor, especially one interested in staking, this represents an opportunity for you to embrace projects with huge potential for growth, for maximum future earnings.
Here are six projects highly likely to cause a ripple in the blockchain and cryptocurrency industry, possibly as soon as the third quarter of 2020.
1. Ethereum 2.0
The biggest DApp ecosystem is migrating from Proof of Work ( POW) to Proof-of-Stake. Ethereum is currently a PoW blockchain ecosystem that allows people to send or receive money on a peer-to-peer network. It was also the first blockchain project to introduce smart contract technology.
Ethereum is also planning to introduce two scaling technologies, plasma and Sharding, which, if successful, will make it the fastest blockchain network. It could be capable of processing thousands to millions of transactions in one second.
Ethereum 2.0 launch was initially set for January 2020, rescheduled, but debugging is taking longer than expected, and the project is speculated to be launched anywhere between 2020 and 2021.
The price predictions for Ethereum 2.0 after launch ranges between $720 and $1488, with a market cap of $148 Billion. Staking on Ethereum 2.0 is expected to return 1.5% to 18% annually and 5% for network validators.
2. Cardano (ADA)
Cardano was launched in 2017 and is one of the projects that has taken its time to mature. It is an open-source, public blockchain that seeks to employ the most advanced smart contract technology in the industry, with the first "provably secure" PoS algorithm.
Cardano uses the ADA cryptocurrency, which started 2020 at $ 0.03 and currently at $0.05, with a market cap of $143Billion. Cardano is presently running an incentivized staking network, the Shelly Testnet, which was rolled out in November 2019.
The testnet is exploring the staking mechanism in a controlled environment before launching it on the mainnet. The annual reward is currently 7.2%, bound to go up with the launch of the mainnet.
3. Cosmos (ATOM)
Cosmos is a unique blockchain project that gained traction in 2019 as the third-generation blockchain network after Bitcoin and Ethereum as the first and second generation, respectively. It is a blockchain technology that fosters interoperability between different blockchain networks, which aims to create an internet of blockchains that share information and communicate automatically.
The network uses ATOM token, which is currently trading at $2.61 with a guaranteed bright future since such a level of interoperability is crucial to the growth of blockchain technology. The ATOM token is a worthy long-term investment with a current annual yield of 8.39%.
4. Chainlink (LINK)
Chainlink is one of the best and most ambitious decentralized blockchain oracles in the industry. It allows decentralized applications, Dapps, and entire blockchain networks to connect to external APIs and send payments to bank accounts payment networks. Blockchain networks and Dapps need reliable oracles to feed them data, to execute smart contracts, and Chainlink is bridging this gap.
The project uses the LINK token, currently trading at $3.86, and since all smart contracts need reliable oracles, Chainlink is establishing itself as one reliable data provider.
While the current annual staking reward of 0.15% isn't much in terms of ROI, the project will likely rise in value as more smart contracts get developed.
5. Hive (HIVE)
Hive is the recent hardfork off of the STEEM Blockchain network, which occurred after a heated community split since the Purchase of the Steemit social blogging platform by TRON. The project is relatively new, but it took a bigger chunk of community users who believed in fostering decentralization over biased governance.
Hive established also has its Hive blogging platform and other decentralized applications and controlled by stakeholders. This is the same community that made STEEM to what it was before the controversial TRON takeover, and it would be a good bet to say that they'll likely commit the same way while avoiding a repeat of fate.
The price of HIVE is $0.27, a quick rise only months after launching, and with an inflation rate of about 9.5%.
6. QTUM
QTUM is a PoS Singapore-based decentralized platform for smart contracts and mobile applications for businesses and enterprises. The platform launched in September 2017, and it has since become one of the top 20 most valuable cryptocurrencies.
As an open-source project, businesses can use the platform to migrate to smart contracts from traditional models. The project is, however, very developer-oriented and might be somewhat too technical for the average crypto staking investor.
Its current market valuation is about $1.62, with expected strong use cases, backed by its strong developer team, angel investors, and introduction of blockchain light client mobile application. Staking with QTUM has a current annual yield of about 6.09%, substantial inflation for investors already on board.
Final Thought
These projects represent just a fraction of the potential of the PoS protocol to the blockchain industry and you as a crypto investor. While you explore ways to invest in long-term projects, remember to also invest in already rewarding projects to earn rewards right away.
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