The year 2020 meant an upswing in cryptocurrencies, not least because of the corona crisis. Bitcoin & Co. has gained more importance in the last few months than ever before. The popularity of digital coins has increased by far. Accordingly, it is not surprising that more and more investors are interested in new cryptocurrencies.
Not only our social behavior but also our buying behavior has changed drastically in the last year. More and more people are investing in cryptocurrencies or using coins as a payment method on the Internet. This trend will continue – because the year 2021 has some promising new cryptocurrencies ready. More and more people have been investing in entertainment through the internet, online board game subscriptions have risen as well as video game sales and participation in NetBet online casino, etc.
In this article, we will address the following questions: What new cryptocurrencies are coming in 2021? How do new cryptocurrencies arise? Where is the best place to buy digital coins? And which cryptos will be worthwhile?
New cryptocurrencies 2021
Oyster (PRL) Oyster was presented as “the future of website monetization and storage”. Oyster is a blockchain that offers something really innovative. Oyster’s premise is based on the fact that online advertising has died or stopped working. The solution that the company offers is a code chain.
Polkadot enables different blockchains to be connected. The idea behind Polkadot is to create a better and safer internet so that you can have more control over it.
Polkadot acts as a relay chain, which enables a simpler, faster, and the more resource-saving start of your own blockchain system.
Power Ledger is a platform that enables the exchange of cryptocurrencies and energy based on an Australian blockchain, which in turn allows the decentralized finance marketing of renewable energy. In other words, companies and households that want to use power ledgers can sell the excess solar energy on the local network and buy more energy from traditional electricity companies that are traded at lower prices.
Cardano was built on the basis of peer-reviewed academic research as the first blockchain project and public, decentralized open-source cryptocurrency.
ChainLink is a platform for cryptocurrencies, the aim of which is to promote the use of “smart contracts”. Smart contracts in the blockchain denote a technology that helps users to exchange money or other valuable assets without intermediaries. The purpose of ChainLink is to make it easier to connect smart contracts to external resources across different networks.
Ontology is an innovative project based on a public blockchain and high performance. It is a reliable and collaborative platform that is distributed among users and was created by China Onchain company in 2017. Ontology seeks to break down the barriers between the corporate sector and the blockchain so as to allow the development of projects of all sizes and shapes.
ARK is based on a system called SmartBridge, with which blockchains of different projects can communicate with each other. The main goal of ARK is to provide a common connection point for every cryptocurrency so that users who are part of a particular cryptocurrency network can keep their currencies there while executing smart contracts on another platform.
Stratis is a blockchain platform designed with the goal of providing developers with the tools they need to create their own custom blockchains. The main goal is to provide simple and accessible solutions for finance, technology, and medical companies who need to create and test apps for their business.
How do new cryptocurrencies arise?
Cryptocurrencies are purely digital units of value, the physical possession of which is replaced by a long letter or number key. The easiest way to explain it is that cryptocurrencies are limited entries in a database that cannot be easily changed. A cryptocurrency can also be defined as a string of data that has been encoded to denote a unit of currency. There are many different cryptocurrencies, of which Bitcoins are arguably the most popular and best known. In contrast to conventional currencies, cryptocurrencies are free from government supervision and manipulation. They are monitored using peer-to-peer internet protocols.
Cryptocurrencies are generated by what is known as mining, i.e. by adding transaction records to the public ledger of the cryptocurrency in question. Transactions happen instantly and are known to the entire network. The transactions must be confirmed in order to be completed.
However, before a new cryptocurrency comes onto the market, certain requirements must be met. These include the whitepaper and ICO.
Before a cryptocurrency can be introduced, the digital currency must have a whitepaper so that it becomes a successful advertising campaign. A whitepaper is nothing more than a document that describes the overview of a problem that the project wants to solve. It also contains a detailed description of the product, the architecture, and the interaction with the users.
The most important aspects of a whitepaper are:
Disclaimer of liability
Description of the market and the problem
Description of the product and how it solves the problem
Everything to do with tokens
How much capital is used
For example, Bitcoin was launched by Satoshi Nakamoto after sending an email on November 1, 2008, with the title Bitcoin: A Peer-to-Peer Electronic Cash System. On 8 pages he described the basis for Bitcoin and blockchain technology in the whitepaper.
Ethereum, the second-largest cryptocurrency after Bitcoin, was also described by Vitalik Buterin in the whitepaper Ethereum: A Next-Generation Smart Contract & Decentralized Application Platform and thus also launched. The concept was then presented at the beginning of January 2014.
The ICO is, so to speak, the form of financing for business models based on blockchain technology. With ICO (Initial Coin Offering), young companies or start-ups sell tokens for fiat money (or established cryptocurrencies) in order to gain capital. In particular, the ICO is held at the IPO (Initial Public Offering), where a company goes public.
ICOs 2021 will be used to bring new cryptocurrencies to the market. For example, so-called utility tokens are initially offered for sale at low prices, which later become the digital currency that is also traded-in.