Many are interested in the concept of cryptocurrency and its operating model. Bitcoin was the first cryptocurrency to venture into the global market. Since then, there have been many advances in this operating model. Along with Bitcoin, many other cryptos made their entry into the investment market.
Why did crypto gain huge attention?
The primary reason for the growing attention to crypto is its decentralised finance. It means there is no intervention by any banks or central authorities. Every user transaction is peer-to-peer making it easier to complete transactions. Cryptos are also not linked to any currency model. This makes it easier to transfer cryptos from the UK to the US or any other country. A classic example of this working model is the recent war in Ukraine. Many investors came forward with their investments. The country was able to generate more than $50 million through crypto donations.
Cryptocurrencies works on the blockchain philosophy. It means every user transaction breaks down into single units of chains. These single units are then stored on the user computers. The process of verifying this user transaction is also known as data mining. Once the validation activity is complete, every user chain takes a unique number.
Along with crypto, the concept of blockchain also gained attention. Other than cryptos, the logic of blockchain by itself is under research. Many companies are undertaking innovative and technical solutions to understand this concept better.
One such fast-growing concept in the blockchain industry is Zero-knowledge (ZK). This is the process of increasing blockchain performance. The concept entertains blockchain to perform better at reduced transaction charges. ZK is useful to record details of rolled transfers on Ethereum. This logic makes it possible to undertake a huge volume of transactions in less than a minute.
Best ZK currencies for investment in 2022
Now that we have understood the concept of ZK, let us also look at a few currencies for investment.
Polygon (MATIC)
Polygon platform makes it easier to develop Ethereum compatible networks. It is an internet of blockchain in the crypto industry. During the initial launch period, the platform refers to itself as MATIC. But considering the operating capabilities, the network expanded beyond the Ethereum platform.
There is an increasing interest and wider adoption of this platform recently. The number of users has increased steadily. Major online platforms including AAVE, and UniSwap have adopted this operating model. According to a recent survey, there are more than $4 billion in networks under the total revenue lock.
The coin has seen its ups and downs since its launch. It suffered a 25% loss compared to its previous price in February. But the coin is likely to recover and include long-term investment.
Loopring
Another ZK-based platform was developed to support high fees during each transaction. The platform helps to provide a solution to investors using decentralised exchanges. The DEXEs charge high transaction charges and make it tough for investors. By using the Loopring platform, investors are paying much fewer transaction charges. The transactions are also easier and take less time as compared to exchanges.
The Loopring platform can also help in liquidating user assets. As of today, their pairing of ETH – USD has more than $30 million in liquidity. The liquidity of loopring to Ethereum is estimated at more than $10 million.
Mina Protocol
Small but fast-growing ZK platform in the industry. This platform makes use of ZK technology to upgrade its performance. The coin currently has a total market capitalization of more than $1 billion. The developers have also been able to raise direct investment. The protocol is already available to more than 1000 developers globally. These developers can use this platform to create their networks and apps. Considering this strategy, there is a likelihood that protocol will use this philosophy.
Is it good to invest in crypto?
Cryptocurrencies and their investors have been a topic of debate. But, in recent times many countries are looking at this investment differently. The investment is inevitable and not ignored. There are steering committees set up to understand the pros and cons of this investment. Many countries have also imposed tax regimens on these investments. Cryptos are open to price volatility. The investment model also is prone to huge market fluctuation.