In 2013, cryptocurrencies took a new step in their evolution when Ethereum (CRYPTO:ETH) has been created. With the arrival of Ethereum, a new form of blockchain technology known as smart contracts would provide the basis for things like non-fungible tokens, decentralized exchanges, and yield farming to come. Now that it has been a few years, the number of blockchains based on smart contracts has increased. New cryptocurrencies like gimbal (ADA -7.51%), Solana (FLOOR -8.46%)and VeChain (VETERINARY -6.49%) have started leveraging smart contract technology in their own way and should be considered for a place in every investor’s portfolio.
Neil Patel (Gimbal): Cardano was launched in 2017 by Ethereum co-founder Charles Hoskinson, which immediately makes the blockchain project more interesting and credible due to its leader’s pedigree to help create the second most valuable cryptocurrency in the world. world. As of August 24, Cardano has generated a monstrous total return of over 1,700%, despite falling 85% from its all-time high of $3.10 in September 2021. Today, Cardano is the eighth highest crypto valuable with a market cap of $15.6. billion.
As Cardano runs a proof of stake consensus mechanism, it operates at two levels. The Cardano computing layer enables decentralized applications (dApps) to operate via smart contracts. And the Cardano settlement layer is where transactions are validated. This innovative setup helps offload network congestion from the main blockchain, helping to speed up transaction processing times.
Cardano’s development process is unique in that it uses a research-driven and staged approach. This strategy, which relies on peer review of computer scientists and cryptographers from top universities around the world, could make Cardano slower than other cryptos when it comes to implementing upgrades. But this approach helps to minimize errors by thinking about possible risk factors.
The latest phase of development, called Goguen, brought smart contracts to the platform following Alonzo’s hard fork which was completed in September last year. This instantly made Cardano a direct competitor to Ethereum’s dominance in the space. And the current phase, known as Basho, is all about improving network scalability and interoperability. With the Hydra Layer-2 solution, Cardano can theoretically process an incredible 1 million transactions per second (TPS), crushing Ethereum’s current capacity of 13 TPS.
As of this writing, over 1,000 different decentralized applications are running on Cardano’s network, demonstrating its appeal to developers working on building services that bring utility to the blockchain. Additionally, Cardano shows promise with enterprise-level solutions, such as identity verification for financial organizations and counterfeit prevention for businesses in the retail industry.
Achieve a price of $1 per tokenup around 117% from today’s price, is certainly on the table if Cardano can continue to move forward with its development roadmap and with the growth of its dApp ecosystem.
Michael Byrne (Solana): Solana is an attractive platform for smart contracts thanks to the super-fast network speed and low fees. Solana can achieve a throughput of around 65,000 transactions per second, although it’s typically around 3,000. Solana also offers sub-second transaction times. This high speed and capacity prompted Bank of America (NYSE: BAC) analysts to say that Solana can potentially become the “Visa (NYSE:V) of the digital asset ecosystem. “Solana achieves this speed by using a process called proof-of-history, in which it orders and groups transactions before processing them by proof-of-stake consensus. The Solana network had nearly 2,000 validators in July, far more than any another smart contract platform apart from Ethereum, which makes it more decentralized than other layer 1 blockchains.
Additionally, Solana uses popular programming languages like Rust, C+, and C++, which means developers can build apps on the platform without having to learn a new language.
These attributes combine to make Solana an attractive platform for developing applications. According to data from crypto research firm Messari, the number of unique programs on Solana has exploded over the past year, with more than 1,000 programs being used daily in July, compared to less than 200 last August.
RJ Fulton (VeChain): VeChain was originally an ERC20 token on the Ethereum blockchain, but switched to its own blockchain in 2018. Since then, the blockchain has partnered with some of the biggest companies in the world to solve business problems in a secure environment and instant on the blockchain.
VeChain customers use their smart contract-based solutions to track, automate and account for goods as they move through supply chains. In an increasingly globalized world where products change hands many times before they are purchased, VeChain provides an invaluable solution to businesses in various industries.
It’s a growing list, but VeChain has already partnered with some of the most notable brands in the world. Car manufacturer BMW (OTC: BAMXF) uses VeChain to manage data such as mileage, repairs and additional services of a vehicle. walmart (NYSE: WMT) in China employed VeChain as part of a traceability program that promotes transparency so consumers know exactly where their food is coming from. Pharmaceutical giant Bayer (OTC: BAYR.Y) enlisted VeChain to create an app that tracks clinical drugs as they travel through the supply chain. Luxury brand Givenchy is adding microchips to its handbags so owners can verify their authenticity. In the world 1st manufacturer of electric vehicles, BYD (OTC: BYDDY)uses VeChain to track drivers’ carbon credits.
As companies continue to face supply chain issues, VeChain could be used to maintain accuracy and track international product logistics. The counterfeit economy is lucrative and is expected to reach nearly $1 trillion in 2022. With VeChain, businesses can ensure authenticity and minimize cost impacts more effectively.
The future is bright for VeChain as the world becomes more digital. If you’re looking to diversify your smart contract blockchain assets, it’s hard to ignore the long-term value of VeChain as more and more companies are looking for blockchain-based solutions.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Michael Byrne has positions in Ethereum, Solana and Walmart. Neil Patel has positions in Ethereum. RJ Fulton has positions in Cardano, Ethereum and Solana. The Motley Fool holds positions and recommends BYD, Ethereum, Solana, Visa and Walmart. The Motley Fool recommends BMW. The Motley Fool has a disclosure policy.