Bitcoin was the maiden voyage in a fleet of cryptocurrencies to follow — all built on a decentralised peer-to-peer network. The pioneer and de facto standard for cryptocurrencies, Bitcoin, never ceases to inspire growing hordes of followers and new and innovative substitutes.
While Bitcoin took centre stage dominating the crypto conversation in 2020 with its value ballooning by over 220% since early January, the year ahead could see the alternative crypto cast make more developments in the industry of digital currency.
What are Altcoins?
An Altcoin is any cryptocurrency besides Bitcoin. These can include coins and tokens built on different protocols and can serve other purposes to that of bitcoin.
The most well-known altcoin is Ether of the Ethereum project. It once began as a potential alternate for bitcoin until it developed into something completely different. It now has its own devoted audience and use cases well outside of the sphere of Bitcoin.
The Ethereum ecosystem may be one to keep a close eye on with talented developers migrating into its token structure, building out new use cases and creating more possibilities for the market.
Let’s discuss which other projects and Altcoins that may have a productive 2021.
Litecoin
Litecoin was the first-ever altcoin to emerge in the early 2010s. It’s lost some shimmer since then, but the crypto still consistently attracts users to its platform. As a faster transaction method to the more time-consuming Bitcoin blockchain, Litecoin remains a force to be reckoned with.
It offers a cheaper entry point into the market for new crypto investors than it’s pricey Bitcoin counterpart. Despite rising 167% in 2020, and a further 26% in January to around $132 currently, this is still a mere fraction of Bitcoin’s current price tag.
Cardano
Cardano is the world’s first-ever peer-reviewed decentralised blockchain solution, with its native cryptocurrency ADA gaining increased recognition recently. Cardano and ADA were both created by ex-Ethereum co-founder Charles Hoskinson. Since launching in 2017, Cardano has quickly established itself as one of the top cryptocurrencies.
It is considered a third-generation blockchain designed to support smart contracts with potential implementation in supply chain traceability and governance. Cardano uses a programming language that is native to military infrastructure and other influential industries, making it extremely valuable and attractive to a variety of sectors. It may even be used to prevent counterfeiting in the future.
Cardano is a competitor of Ethereum with an experienced core development team that may have improvements over Ethereum’s protocol in the pipeline. Cardano is the 6th biggest digital currency in the world, gaining a lot of interest among investors in chat platforms such as Discord and Reddit.
OmiseGO
OmiseGo originated a company that already handled many transactions in Asia under the name Omise. Founded in 2013 by Jun Hasegawa and Ezra Don Harinsut, OmiseGo is Omise’s blockchain solution. The idea is that OmiseGo is a similar solution for intra-bank payments, comparable to the well-known SWIFT network.
They have formed a number of key partnerships with large organisations in recent years, most notably with McDonald’s in Thailand. Their cryptocurrency is an ERC20 token, with every McDonald’s restaurant in Thailand accepting the coin. This may not have you batting an eyelid yet, but if you assume there are approximately 70 million people in Thailand who can now all pay less for Macdonald’s, then this could have a profound impact on the OmiseGo philosophy.
June 2020 saw OmiseGo rebranded and transitioned to the mainnet, now going by the name the OMG Network.
VeChain
VeChain (VEN), officially re-branded to VeChain THOR (VET) in 2018. They also announced they will be teaming up with the international car manufacturing heavy weight — BMW. VeChain Thor enables businesses to track their products throughout its entire supply chain cycle with the help of the blockchain technology.
This provides assurances of quality and authenticity of products. Their biggest partnership to date, came in August 2020, when they joined forces with Oxford University in a bid to aid the technical development of the VeChain THOR platform.
There are already many stores and logistics companies that are making use of this ecosystem.
Conclusion
Bitcoin is how many dip their toe in crypto, its much like how first-time traders buy Apple stock as a soft entry into securities. However, both are icebergs with much hidden under the surface.
2021 could well be the year that many altcoins break new ground. More people are starting to grasp the concept of Altcoins through their increasing real-world use cases. It’s an evolutionary certainty that their implementation will continue to rise with the price of their currencies and tokens.
