Blockchain boom: 3 Cryptos backed by solid tech
  • Technology and utility underpin the future leaders of the cryptocurrency market.

  • Bitcoin (BTC-USD): The blockchain was created for Bitcoin.

  • Ethereum (ETH-USD): Smart contracts development favors Ethereum’s technology due to first-mover status.

  • Cardano (ADA-USD): Cardano is going to develop leading crypto technology over time.

The blockchain boom is likely here to stay and so are the cryptos backed by solid tech. Greater utility is being built using blockchain ledger technology and as that technology improves the market will too. The speculative junk cryptos built to deprive fools of their capital are becoming more rare. In its place, higher-utility projects are continuing to take shape at an increased pace.

Undoubtedly, impressive tech will emerge from the innovation that is happening within cryptocurrency and blockchain. That also suggests it’s worthwhile to understand the technology that underpins most technologically advanced cryptos that are leading the pack currently. Let’s begin with the grandfather of the cryptocurrency space.

Bitcoin (BTC-USD)

Bitcoin (BTC-USD) was the first cryptocurrency. That’s important because ledger technology was built around it which remains central to cryptocurrency. The fundamental ledger technology that is more well-known as the blockchain was built to serve Bitcoin.
Bitcoin’s creator, Satoshi Nakamoto, is responsible for ledger technology as we currently know it. Whoever Nakamoto is, they wrote the whitepaper that described a peer-to-peer network that solved the double spending problem that allows paper currency to be duplicated. In other words, Nakamoto described the distributed ledger system that is immutable around which Bitcoin was built.
It was the original technology that offers to decentralize control over monetary policy away from central banks and governments. If you really consider it, it’s one of the fundamentally most impressive creations in a long time.
Nakamoto developed a blockchain system that solved a problem people had been describing for a long time. It may prove to be a technological quantum leap for finance.

Ethereum (ETH)

Ethereum (ETH-USD) is best known for smart contracts technology. Smart contracts are programs stored on a blockchain that are programmed to operate when a certain set of conditions are met. In other words, smart contracts can be programmed to self-execute and have all kinds of applicability.
Ethereum pioneered smart contracts and that’s what is very important to know in relation to the technology. There are other smart contract technologies available. However, Ethereum has a massive first-mover advantage and developers flocked to it and began to quickly adopt its technology when it was released. The result is that Ethereum boasts a massive base of developers that outpaces other platforms with smart contract technology. The switching costs are massive now and that suggests that all other smart contract technologies simply have a very small chance of mass adoption.
It isn’t to say they are necessarily technologically less advanced. But Ethereum simply won by virtue of its first-mover status. It is facing challengers including Solana (SOL-USD), but for now its tech is dominant so the longer it’s developed by its massive base, the slimmer the chances it will be overtaken.

Cardano (ADA)

I think there are a few salient points to consider regarding Cardano (ADA-USD) and technology. First, Cardano is among the most likely firms to produce blockchain and cryptocurrency that are durable. By durable, I mean those that will become and remain part of the financial system for a long time.
The reason is simple, Cardano was founded on peer-reviewed research and developed through evidence-based methods. If any blockchain firm is likely to produce technologically sound blockchain and crypto projects, Cardano is it.
It’s also slow. Building consensus around leading-edge computer science technology takes time. Therefore, implementing it also takes a lot of time.
Cardano adopted a proof-of-stake consensus mechanism to govern decision-making. Holders delegate their stake to pools that keep nodes running. This is more efficient than proof-of-work mining mechanisms which are winner take all and require more time in general. Overall, Cardano is very likely to continue to develop its technology iteratively in a way that should lead to the most fundamentally solid blockchain. Many discount Cardano for its slow development but it could be the tortoise that crosses the finish line of crypto.




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