As you start to delve deeper into the market, it becomes obvious that not all blockchains are created equal. Today’s best-performing networks offer a combination of low-risk DeFi features, programmability, and proven security. There are a lot of crypto platforms competing for the title, but only the best can be considered the top 5 blockchain projects to watch in 2023.
META 1 Coin
META 1 Coin is the first safehaven token to gain notoriety in the market. The token raised eyebrows after it managed to gain +1.3% in value while the rest of the market lost +60%. Networks like Bitcoin and Ethereum remain down over 60% from their all-time highs. META 1 Coin was able to accomplish this task due to its unique structure.
The project represents a shift in the way developers maintain stability in the market. The coin leverages a basket of gold-related assets to escape volatility. These reserves are audited regularly and provide the token with an advantage over the competition, long term self-appreciation.
META 1 Coin leverages the store-of-value aspects of gold and combines them with the convenience and security of blockchain assets. META 1 Coin holders avoid inflationary concerns due to this structure. They can also use their tokens to create passive income within the METANOMICs DeFi ecosystem.
A New Type of Stability
What makes META 1 Coin revolutionary is the introduction of smart contract protections. These systems prevent centralization and whale manipulation in the community. Notably, META 1 Coin was the first network to introduce these protections and they have proven to be highly effective as the token remains stable today.
No Robots or Corporations
One of the main things that the developers wanted to do was to ensure the network was for the people. As such, all traders must prove they are human to enter the METANOMICs DeFi universe. By eliminating non-humans, the developers have figured out the best way to stop whale manipulation before it even occurs.
Bye Bye Robots
This approach has the added benefit of eliminating trading bots. These advanced algorithms are used by professional traders to monitor and execute trades 24/7. They are highly effective but they put the average trader at a disadvantage. Also, their settings can trigger sell-offs in droves if a lot of robots operate in the community
Token Limits Eimainte Whales
The team took the step of introducing a token limit on all wallets as well. META 1 Coin holders are capped at $5M in tokens at the moment. This token limit was put in place following a massive whale sell-off that crippled the UST stablecoin.
META 1 Coin was quick to react with this new protection. Notably, the token limit value of $5M will increase as the META 1 Community grows. The current rate is what the developers determined was the safest amount allowed to protect the community.
Ethereum recently completed its Ethereum 2.0 upgrade which improved the network’s capabilities and performance dramatically. The upgrade converted the network from a PoW (Proof-of-Work) consensus mechanism over to a PoS (Proof-of-Stake). The maneuver reduced the overall energy consumption of the network, which makes ETH 2.0 more sustainable.
As the largest and most popular DeFi, Dapp, and token environment, Ethereum remains a force in the market. The upgrade helped the network fight off the steady flow of competitors which all provided better performance before the upgrade. Now, Ethereum is a fourth-generation blockchain that can compete with the latest networks available.
For many years Ethereum suffered from congestion issues. These problems led to delayed transactions and higher fees. Both of these issues are resolved with the Ethereum 2.0 update. The upgraded network can handle 100,000 transactions per second versus the original network’s 15 tps.
Better for Developers
Another major plus the upgrade introduced was the ability to use multiple coding languages when creating smart contracts and Dapps. Until the upgrade, people needed to learn the Solidity programming language developed specifically for the network by one of its co-founders. The new eWASM virtual machine supports additional languages like C, C+, and Rust
Cardano is a blockchain built using the scientific method for academics. The protocol is open source and was peer-reviewed during its creation process. The goal was to create a more balanced blockchain that could support gen-3 and beyond programmability. Even the name of the network originates from Gerolamo Cardano the famous mathematician from the Renesannce era. He achieved fame for his work Ars Magna, which was among the first Latin books dedicated solely to Algebra.
The network is unique in many aspects. For example, Cardano is one of the most environmentally friendly blockchain networks in the market today. The network leverages pioneering technologies to maintain security without eating up computational power. To put the network’s sustainability into perspective, reports show it to be 37,500 times more energy efficient than Bitcoin.
The goal of the project is to help connect and organize the growing number of networks operating today. As such, the developers have called it the “internet of blockchains” in interviews. To that extent, the network provides a secure way for people to transfer data and assets between blockchains.
Cardano was created by Ethereum co-founder Charles Hoskinson. He used his experience to create Cardano with some advantages over Ethereum in terms of programmability, sustainability, interoperability, and security.
Another major advantage of Cardano is its upgrade strategy. The network can support seamless upgrades which is a huge plus compared to hard forks. The main difference is that network nodes don’t have to abandon the old chain whenever major upgrades occur. A perfect example of this occurring was the latest ETH 2.0 upgrade.
Another reason why Cardano has become a go-to project for professionals seeking blockchain services is the use of the programming language Haskell. Haskell is a functional programming language that provides high testability when creating. Haskell has a variety of features that enable self-checking of code such as running tests in simulation.
Polkadot entered the market in 2017 following a record-breaking ICO (Initial Coin Offering). Since that time, the network has expanded continuously to include a healthy array of Dapps and platforms. At the time of its launch, Polkadot was one of the first sharded blockchains.
Sharding is a term that refers to how data is saved. It enables networks to scale vertically, which was a major concern for Polkadot’s development team. One of the reasons why scalability was so important was that Polkadot was founded by Ethereum co-founder Gavin Wood. Wood is one of the best-known crypto developers in the market and is credited with the creation of the solidity programming language.
Polkadot leverages bridges to create interoperability within its ecosystem and third-party networks. These networks all connect via a special blockchain layer called the relay chain. There are also multiple types of sub-blockchains supported on the network. Parachains are sovereign blockchains that leverage Polkadot’s framework.
Full Support for Blockchain Development
Parathresads are like parachains but are networks that don’t need constant blockchain interaction to conduct their functionalities. This structure helps to reduce congestion and costs for networks that don’t require constant mainnet connectivity to operate. Together, these features provide a high level of interoperability with users able to transfer data and assets across the network seamlessly.
Leverage Shared Security
One of the main advantages of Polkadot is that it enables developers to share the ecosystem’s security model. This approach is ideal when a network may not have enough nodes by itself to remain protected against attacks. This strategy also saves time and money compared to developing stand-alone security options.
Nominated Proof of Stake
The network’s unique consensus mechanism enables nodes to stake their tokens to secure passive returns while securing the system. The advantages of this mechanism are lower costs and faster transaction processing. Additionally, the mechanism provides a low carbon footprint which adds to the network’s sustainability.
Avalanche is a multi-chain blockchain infrastructure designed to drive adoption and scalability. Avalanche is a fourth-generation network that separates functions from onboarding and validity via the multi-layered approach. The system uses the X-chain to support the creation of digital assets like NFTs and tokens.
The C-chain serves the purpose of streamlining onboarding for EVM developers. The chain offers an EVM-compatible environment so converting apps from Ethereum to Avalanche is seamless. This strategy has helped Avalanche capture a growing percentage of the Dapp market over the last 2 years.
The P-chain is where validation processes take place. This is the administrative chain that handles tasks such as monitoring subnets, security, and staking options. Custom-built blockchains live on the P-chain and share in the network’s validation process if they desire.
Inflation is Not an Issue
Avalanche has a unique deflationary protocol that burns all fees. This maneuver keeps the scarcity of the network’s utility token, AVAX in demand. AVAX is required to conduct any network actions such as staking or executing smart contracts. It’s also used to pay fees. Notably, Avalanche has very low fees for mining assets and creating blockchains.
Another main draw for Avalanche is the support for compliant Dapps. There are more use cases in which tokenized assets need to meet regulatory constraints to operate effectively. The introduction of an easy-to-use complaint Dapp ecosystem helps to get these networks to market faster.
Bitcoin, the world’s first cryptocurrency is still a top contender on anyone’s top crypto list. This coin continues to change the world daily as more governments opt into the decentralized economy. Last year, El Salvadore raised eyebrows when they made Bitcoin legal tender. This year could have more countries following suit.
Bitcoin remains a strong store of value despite the fact it lacks smart contract capabilities or protections like more advanced systems such as META 1 Coin. Despite its technological disadvantages, Bitcoin has a strong following and a growing community that supports the network. There are now more traditional financial firms entering the Bitcoin market also which has driven prices up recently.
Lightning Network Upgrades
One of the reasons why Bitcoin is back in the fight is due to the second layer protocol the Lightning Network. This off-chain protocol uses personal payment channels to remove congestion from the mainnet. These channels enable low-cost and instant transactions for a fraction of the price of regular Bitcoin transactions.
Another tech that has people interested in Bitcoin again is wrapped tokens. These tokens are digital assets that have been brought over from another network. Wrapped Bitcoin enables HODLers to take advantage of cool DeFi features such as staking and farming. As such, there has been a lot of excitement around wrapped Bitcoin entering the DeFi market.
More Merchant Processors
There are now more ways for businesses and people to accept Bitcoin than ever. There’s probably a chance you have even seen Bitcoin ATM in your neighborhood. If not, just wait, they are coming. Bitcoin is slowly making its way into the daily lives of the average person via merchant processors as well.
You can now spend your Bitcoin using a variety of methods. You can use direct processors or third parties. There are also crypto debit cards that convert your coins into fiat after you swipe the card. All of these options have helped Bitocin remain the market leader for the foreseeable future.
Top 6 Blockchain Projects to Watch in 2023
Now that you know the top 6 blockchains to watch in 2023, you’re ready to start getting in on the action. All of the networks listed above offer unique aspects to the market. Depending on your overall goals or trading strategy, you may find one better suited to your portfolio over another. The main thing to understand is that you want to stick to reputable platforms that are already operating.