Developers and cryptocurrency startups are finding innovative ways to address the financial instability associated with crypto. They are also creating innovative ways to apply blockchain to new and existing industries. Here are a few cryptocurrency and blockchain startups to watch this year.
Proof of Work vs. Proof of Stake Cryptocurrency
Bitcoin emerged as proof of work currency. Users “earned” their worth by mining coin. Others are proof of stake, or consensus-based. These currencies are gaining momentum and popularity.
QTum is built on a proof of stake concept. It merges features of Bitcoin and Ehthereum to create a smart contract solution. This start-up is viewed as the next stage of crypto because it incorporates interoperability and is scalable. It could enter mainstream use as an enterprise-level data solution. Aelf is another startup with the capability to scale and speed data delivery for large organizations.
Decentralized vs. Integrated
One of blockchain’s major attractions is its decentralization. TRON is creating a robust, decentralized content marketplace that makes it possible for consumers to choose the content they desire without relying on subscriptions.
Cloud technology and blockchain created a decentralized boom that gave control of information back to users. This major benefit for individuals has proven to be a detractor to large businesses. Large businesses depend on integrated services, but blockchain systems do not integrate.
Enter startup Cardstack. This open framework keeps various blockchain entities separate from one another yet allows the features to “stack.” A developer can employ Cardstack to create Super dApps that culminate in customized business flows and services without sacrificing blockchain’s security features.
The financial industry has long sought ways to leverage blockchain technology for their own transactions. But as regulations and instability have stalled progress, other industries have emerged as potential blockchain powerhouses.
The healthcare industry is poised to embrace blockchain due to its secure transfer of information coupled with its decentralized philosophy. Patients want control of their information. Blockchain startups like Medibloc promise security and control.
Virtual reality pairs well with crypto. Both dwell in digital space. CEEK provides VR users with a form of currency that can be used within the virtual world to purchase virtual items or experiences.
It is necessary to emphasize the unpredictable nature of cryptocurrency and blockchain. Investors should research startups and only invest what they don’t fear losing.