What happened
Decentralized cloud data token Arweave (CRYPTO: AR) and Blockchain 3.0 tokens Kusama (CRYPTO: KSM) and cosmos (CRYPTO: ATOM) are all having a fantastic day of trading. They rose 13.59%, 29.95%, and 13.33% over the past 24 hours to $ 63.59, $ 392.36, and $ 23.95, respectively, as of 1:17 p.m. EDT. The tokens are recovering in the context of broad investor euphoria in the area of decentralized finance or DeFi.
so what
Arweave is the world’s first blockweave network and is supported by Coinbase Global‘s Coinbase Ventures. Traditional blockchain networks such as Bitcoin, usually have very limited block sizes averaging 1 megabyte due to cryptography and peer-to-peer validation requirements. Even if the network is updated to enable smart contract functionality, it is still impossible to store assets such as non-fungible tokens or NFTs on it.
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Faced with this problem, Arweave found the solution to weave every block with others on the network. This enables unlimited storage of data in his peer-to-peer network. In addition, smart contracts from other blockchains may be able to pull the assets stored in their database for execution.
Kusama can be thought of as a sandbox network for blockchain developers, much like incubators in tech startups. Developers can seamlessly test new features on Kusama before using them on a more well-known network such as Speckle. It organizes auctions on subdivided blockchains, so-called parachains, on which decentralized infrastructures can be built. The most prominent project in his network is Centrifuge. This DeFi protocol allows users to tokenize assets such as NFTs and bills and use them for credit or lending purposes, such as collateral.
Cosmos is a blockchain-of-blockchains protocol that allows users to take advantage of cross-chain bridges. Bitcoin, for example, is known for its slow processing times and high fees that make something as simple as buying a cup of coffee impossible. With the recent introduction of Wrapped Bitcoin this is no longer the case with the Cosmos network. In order to package a coin, it must be started on a more efficient network, such as a ether‘S (CRYPTO: ETH) ERC-20 or BEP-2 (Binance Chain) while guaranteeing its value for the underlying asset. This allows users to effectively use Bitcoin as a medium of exchange to interact with decentralized applications (dapps).
What now
In 2015 there were fewer than 30 dapps on the blockchain. Today that number has grown to an impressive 3,500 and covers all sectors from finance to healthcare to gaming. Around 6,590 smart contracts are executed on these applications every day, which corresponds to an incredible annual transaction volume of over 366 billion US dollars. So be sure to keep an eye out for these promising tokens and the latest developments in the industry.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.
