Our series of TOP altcoins has already introduced you to several of the most important cryptocurrency projects. We have looked at the biggest cryptocurrency players, DeFi mania winners, or privacy coins. Now we are turning our attention to two other cryptocurrency projects that have not been mentioned yet. However, putting a clear label on them is a bit more difficult since they incorporate just so much new and progressive technology but it would be unwise not to mention them as “Top Altcoins,” which is why we have decided to discuss Polkadot and Chainlink.
Polkadot is according to market capitalization one of the biggest projects in the market, with a capitalization of approximately 20 billion dollars. About a year ago, this project was hardly recognized or known by anyone in the cryptocurrency world, so how did it happen that a project such as DOT was able to skyrocket straight to the TOP 10?
Let by Dr.Gavin Wood and Peter Czaban, Polkadot was originally founded in October 2016. However, the project became first known in 2017, when it lost more than 66% of all the funds raised during the ICO stage (approximately 90 million dollars), leading to financial troubles and problems with reputation.
For the vast majority of crypto projects (or in any other world), loss of funds of this magnitude would lead to an immediate end. Luckily, this was not the case for Polkadot. It managed to raise more money in 2019 and 2020, leading to the rebirth of the project, and by mid-August 2020 it became the cryptocurrency with the 5th biggest capitalization at that time.
What Does Polkadot Do and Where Is It Heading?
In simple terms, Polkadot is a network protocol that allows any data to be moved between different blockchains. Polkadot enables the transfer of this data and information not only for public and open blockchains but also for private blockchains.
The focus of this project is to find solutions to problems related to interoperability (the ability of different blockchains to work together) and the scalability of blockchain technology overall. These are two of the most common and also most difficult problems of blockchain platforms to solve. Therefore finding a unique solution to them would give a huge advantage to the hands of the project being able to do so, which is one of the aims of Polkadot.
Being one of the crucial projects for interconnecting the DeFi cryptocurrencies, Polkadot has already proven that its interoperability and scalability solutions are gaining important attention. It is therefore easy to believe that if the DeFi world sees a significant rise or implementation to the traditional financial world, Polkadot will rise with it.
Chainlink (LINK) was created in 2017 and has been in the TOP 10 of the cryptocurrencies according to market capitalization for a long period of time, however, the recent rise of DeFi projects and different platforms pushed it out of TOP 10. This however has no effect on the project whatsoever, since the quality of its team, as well as its mission, makes it one of the most intriguing projects. Due to its uniqueness, Chainlink gained attention almost immediately.
Chainlink specifies the problems and solutions connected to decentralized oracles, essentially acting as a middleware agent between the traditional sources of data and the cryptocurrency world (mostly Decentralised Finance projects). Also, Chainlink tries to work on the problems connected to the communication of smart contracts and Oracles. Its solution is therefore a creation of an effective connecting tool that is represented by the project itself.
The real advantage and a key point for the future of this project are its partnerships. Not many companies in the cryptocurrency world have as many partnerships as Chainlink. This is also a neat way of showing that Chainlink is not an empty project full of future development promises, but a project that already delivers a solution to existing problems that companies need to solve. Some of the partnerships include projects such as Synthetix Network, Celer Network or BetProtocol. However, it has also partnered with names such as Google or the Chinese Government Blockchain Service Network (BSN).
It is therefore very easy to imagine projects such as Chainlink to succeed in the future. If it delivers solutions to the companies in the same manner as it has done so far, the number of partners will only increase, leading to more usage of its native token LINK.