Rewards of an Early Investor
The first to market will always have an advantage to the latecomer.
Airdrops have become a popular way to distribute rewards and incentivize coin purchases. Airdrops such as the Binance Coin Airdrop, BitTorrent token AirDrop for Tron holders, and the Theta airdrop of Theta fuel.
With competition arising within altcoins and exchanges, collaborative ways have been created to provide more value and holding incentives to users.
Examples of reward systems would be yield farming as well as staking (Tezos, VeChain, G999 and Cosmos)
Yield Farming, Liquidity Providers the Future of Banking
The value from the cryptocurrency market is derived from utility and the infrastructure which liquidity in the market provides (the ability to freely buy and sell cryptocurrencies). Mining and yield farming are both ways that cryptocurrency users are able to be rewarded within the ecosystem.
The world of decentralized finance requires yield farming to provide liquidity in the form of liquidity providers.
A secondary layer on top of the blockchain infrastructure for lending and borrowing. Users deposit collateral in the form of two cryptocurrencies that make up a cryptocurrency pair. Liquidity providers have rewarded incentives for holding.
New cryptocurrencies that provide governance or function within the ecosystem are issued to liquidity providers.
Defi protocols are important as they allocate liquidity pools and rewards without the need for a central authority.
Rise of the NFT (Binance Promotes NFT Market)
NFT stands for a non-fungible token in economics, this refers to an instrument with unique properties. Physical or digital assets with the certificate of ownership could be thought of as NFTs.
Rise of NFTs has Binance promoting an NFT marketplace alongside projects such as Enjin and Origin Protocol.
Binance will launch Binance NFT, the world’s leading NFT marketplace and trading platform in June.
The platform mentioned that it will integrate its Binance account with Binance NFT to create a seamless user experience. Discounts are offered for those holding BNB coins. Hosting two events a “Premium event” hosting unique collaborations and a “Trading market” empowering everyday uses to create NFTs at a minimal cost.
Helen Hai the head of Binance NFT mentioned the power of Binance integrating with the NFT market. Users may list their NFTs for sale or auction at a minimal cost – having full control of their assets. The integration of buying cryptocurrencies and using them to create NFTs has Binance as a contender for the NFT Market.
Blockchain technology: Future in Altcoins
- Mining based cryptocurrencies
- Security tokens
- Utility tokens
With the integration of blockchain technology into real-world applications alternative coins (Altcoins) have emerged. Ethereum and Binance Coin have the largest market capitalization between the altcoins (currently).
The adoption of altcoins has been increasing with the adoption of Ethereum – a decentralized computing network capable of hosting applications and solving real-world issues.
New generation projects such as Cardona, Polkadot, and G999 (smart contracts) are replacing our traditional understanding of cryptocurrencies.
- Financial System
Replacing the Old additional financial system decentralized finance powered by blockchain technology enables lenders investors and Borrowers to work together to achieve desired outcomes.
- Market Instruments
Treasury bills commercial papers deposits certificates of deposits agreements mortgages asset-backed Securities all of these are traditional market instruments. With the rise of Bitcoin and Ethereum ETFs we see an expanded definition of market instruments.
Projects such as the World Token, Bistroo, Origin protocol, and Enjin have taken the real-world application of altcoins to a new level. Burst IQ using big data blockchain contracts to send medical information. Media chain using smart contracts to pay musicians in the real times. Propy a global real estate market decentralizing title registries and securing ownership.
- Real-World Application
With the creation of altcoins and smart contracts use cases have adapted according to needs. With the NFT marketplaces, music royalty, tracking, and authenticity check the use case of blockchain to secure a digital economy is valuable. Supply chain and logistics monitoring when dealing with big data is another important use case.
Decentralization: the Growth of Use-Case
Blockchain technology is emerging as a game-changer for multiple industries, including BFSI, healthcare, education, real estate, supply chain & logistics, and IoT:
Altcoin season (Biggest Opportunities since 2017)
Bitcoin’s performance in the market over the last year has paved the way for up-and-coming alternative coins.
2017 PERFORMANCE OF TOP ALTCOINS
(Currency, Percentage growth)
1. Ethereum – 9,162%
2. Ripple – 36,018%
3. Litecoin – 5,046%
4. Bitcoin Cash – 501%
5. NEM – 29,842%
Top Cryptocurrency Investments in 2021
Cryptocurrency, Price as of March 29
1. Smart Contracts
Smart contracts Blockchain-based contracts enforced in real-time. They are created as an agreement between two or more parties without the involvement of any intermediary.
2. Internet of Things (IoT)
By integrating Blockchain technology in IoT devices, the possibility of data breaches can be reduced to a great extent.
3. Money Transfer
Blockchain tech enables lightning-fast transactions in real-time.
4. Personal Identity Security
Storing crucial personal information on a decentralized and immutable ledger.
Blockchain tech can acknowledge data sources and automate processes, thereby building greater trust and transparency within the logistics industry.
6. Digital Media
With digital media infrastructure, companies can protect their intellectual property, maintain data integrity, target the right customers, and ensure that artists receive their royalty payments in due time.
Central authorities may use blockchain ledger technology to improve the safety of their systems, for voter registration and governance on key issues, to maintaining the records of the public health sector to tracking citizens’ transaction history.