What are the traits of a legitimate cryptocurrency project? Apart from being based on a solid, dynamic idea, it should be backed by a strong team and ideally, VC funding. It’s always better if the team does a little more than just releasing the whitepaper, and has a working version of the product that solves real problems. And if it’s not open-source, the crypto community will probably just ignore it.
Besides, it should have lots of publicity so people actually know about it.
In the past few years, we’ve seen dozens, if not hundreds, of blockchain projects that claimed to be the next Bitcoin or Ethereum killer. Most of them are long-forgotten, but there are a few that keep on reaching milestone after milestone, that stick to their roadmaps, and are making a good name for the whole crypto industry.
Today we’ll review the 5 most talked about crypto projects of 2020 and see what the hype is all about.
Chainlink is not a newcomer and has been conquering the crypto space since 2014. They managed to raise $32 million by running an ICO campaign and some of you have probably even held their LINK tokens in Lumi. However, this year has been especially prosperous for the project and it’s time to put in a word for it.
If you run a platform powered by smart contracts, you know the pain of connecting them to real-world data via APIs. Single node solutions are not ideal as you have only one node to rely on. Chainlink is an oracle network that works on connecting blockchain space and off-chain data sources, and making this process smooth and secure. Plus, it’s decentralized which means one point of failure is no longer an issue.
Chainlink’s solution is perfect for the emerging DeFi industry as it helps in building decentralized infrastructure by operating a network of secure nodes, as well as providing reliable data, an advanced level of security, and collective problem-solving efforts based on the concept of the open-source model. Stablecoins, lending platforms, DEXs – all of them can benefit from implementing Chainlink’s solution. And since the DeFi space is flourishing, it’s no wonder Chainlink is in demand and LINK’s price has been on the rise.
Founded in 2018 as a fork of Ethereum, the VeChain protocol is now based on Thor blockchain. VeChain helps with making transactions transparent, efficient, and more accountable. Main use-cases include IoT, supply chains, and other business processes.
There are two native tokens in the VeChain ecosystem: VET for payments and voting and VTHO for everyday use as a gas fee for running Thor-powered smart contracts. It implements the Proof of Authority consensus algorithm that doesn’t require as much energy as PoW blockchains and allows relatively easy upgrades.
Supply chains have been researching blockchain tech for a while now and have already started using it to enhance business processes and that’s one of the reasons that can explain the rising popularity of the VeChain project. Besides, the company has been actively striking up strategic partnerships in various fields from travel companies to e-commerce.
Yearn Finance (YFI)
While Bitcoin believers daydream of the coin reaching $15k, another token has managed to outperform Bitcoin big time. The YFI token by Year Finance, at the moment of writing, is a little over $33k and it made headlines by increasing over 270% during just 5 days.
Yearn Finance is a lending aggregator, and lending has been the hottest trend in the DeFi space in 2020. The idea behind Yearn Finance is that it automates lending and undertakes the hard job of researching various protocols to make a decision on which one you should bet on. You can use the YFI token to generate income from depositing stablecoins, such as Tether, DAI, TUSD, or USDC. And by the way, since recently, you can hold and exchange YFI in Lumi Wallet too.
Nowadays, holding is no longer trending, people want to make their money work. That’s probably why so many investors got excited about the idea of receiving returns on their assets and transferred them to the Yearn Finance protocol once the projects established a couple of important partnerships with financial market protocol Aave and derivative exchange FTX.
Calling themselves the Internet of Blockchains, Cosmos Network is yet another DeFi project that has been regularly mentioned as a promising one. The goal of Cosmos is quite ambitious – it wants to solve three main problems that blockchain has been dealing with for years: scalability, usability, and interoperability. Now, how do they do that?
Basically, they reconsidered standard blockchain architecture and came up with a new solution. Cosmos is an ecosystem of parallel blockchains that can scale and interact with each other. As a consensus algorithm, Cosmos uses Tendermint, a spin-off Practical Byzantine Fault Tolerance which makes the blockchain fork accountable (unlike Bitcoin or Ethereum). Besides, Cosmos provides its own easy-to-use SDK so that anyone can build their blockchain on top of Cosmos.
Recently, Cosmos cooperated with two other DeFi projects, Polkadot and Terra, in an effort to create Anchor, a solution that will allow earning interest by depositing stablecoins. And we already know how crypto investors love these initiatives, especially when they come from the alliance of trusted and well-established blockchain platforms.
When talking about interoperability, Cosmos is serious about delivering on their promises. A few weeks ago, in partnership with NEO, ONT, and NEAR, it launched interoperability protocols that will allow developers to build on top of any blockchain of their choice.
But not every talked-about blockchain project has a happy ending. Recently the crypto community was shaken by the news about YAM – another DeFi loaning platform that failed miserably.
Started off as an ambitious yield farming platform, in just the couple of days after its launch YAM attracted about $60 million. However, the success didn’t last – a few days later they found a bug in YAM’s smart contract, and once the news was announced the value of the token crashed from $167 to zero.
DeFi-skeptics used the YAM case as an example of the invalidity of the whole DeFi space and its potential danger. A lot of crypto experts criticized the project from the start, calling it a “pump and dump” setup, and scam. Whatever it was, YAM’s code has never been properly audited and the team, together with their supporters from the DeFi space, failed to fix the issue on time.
The Bottom Line
Lumi Wallet is constantly monitoring the latest trends in the crypto space to not only stay updated, but to also provide you with a better user experience. We’re doing our best and always try to add the most demanded ERC20 tokens, especially the ones that are topping the market cap list. Besides, we do appreciate your feedback and encourage our users to share their thoughts on what tokens they want to see in Lumi. And if it’s possible from the technical point of view, we will make sure to support them.
Would you like to see ATOM, VET, or VTHO in Lumi Wallet? Or maybe you’ve got another favorite coin that would compliment our wallet? Let us know via Telegram chat or other social media platforms and we’ll discuss it.