In the past few years, numerous cryptocurrencies have entered the mainstream. Bitcoin, Litecoin, Ethereum, etc are rapidly developing and are sure to revolutionize the financial sector soon. With progress in the market, many newcomers are arriving with special technologies to stand along with their competitors and to build uniqueness. These newbies adopt many new features like decentralized ICO platforms and make use of all the opportunities blockchain technology provides.
Multiple cryptocurrencies are emerging as third-generation cryptocurrencies. They have all the abilities to overcome the drawbacks of major cryptocurrencies like Bitcoin and Ethereum. Have a look at the major cryptocurrencies that are known to be third-generation digital currencies.
Cardano is a proof-of-stake blockchain that is putting in efforts to solve the major issues of the present cryptocurrencies like interoperability, scalability, and sustainability. Cardano makes use of the Ouroboros system to solve the issues Ethereum faces currently. Ouroboros system is a highly secure blockchain protocol that runs on the proof-of-stake (PoS) consensus mechanism. Cardano is four million times more efficient in energy saving than Bitcoins. Still, it does not compromise with decentralization or security. To secure the blockchain Cardano uses the same mathematical algorithms as other cryptocurrencies. Cardano is compatible with Raspberry Pi and its PoS consensus mechanism adds to its energy efficiency.
The Ouroboros system of Cardano offers a transactional speed of about 257 transactions per second. Thus Cardano can be the best option for global payment and it can serve the demand for cryptocurrencies. Cardano also tries to upgrade its interoperability. They are aimed at moving assets freely across different chains and offer the users the opportunity to attach metadata to the transactions they make. Thus the integration with the governments and commercial banks. However, this cryptocurrency is still under evolution and needs to undergo different stages before it is widely adopted.
Solana is improving itself to be the most scalable, secure, and fastest cryptocurrency available. With the NFT world, gaming, and the DeFi, Solana is trying to be an alternative to Ethereum. It is the fastest among the other cryptocurrencies and performs to build a new block every 400 milliseconds. Thus, the number can be around 50,000 transactions per second. Solana can be measured as a layer 1 blockchain, which does not need off-chain solutions to process transactions. Solana is capable of developing and doubling the speed of processing every 2 years. Solana transactions are also cheaper than Ethereum. The proof-of-history (PoH) mechanism along with PoS helps to verify the transactions’ order without the need for nodes to communicate separately.
Chia is an open-source blockchain that is designed especially to enhance global payments and financial systems. Chia not only wants to be a good investment option but also wants to serve as a handy payment solution. Chia has a strategic reserve and tries its best to evolve into the first cryptocurrency that is traded publicly. The reserves will help to minimize coin volatility and increase adoption by providing different loans. The reserves will also be used to invest in fresh start-ups that exist in the Chia ecosystem.