Crypto

Layer 1 blockchain projects to keep an eye on in 2022

Layer 1 projects to keep an eye on in 2022_

There are many layer 1 blockchain protocols that exist out there. Some blockchain projects claim to be better than the next one, showing nifty new charts and graphs to explain how it is different from the others and is better equipped for the future. Of course, in reality, many layer 1 blockchain projects are similar, with only a few standing out from the crowd. With so many layer 1 projects surfacing nowadays, which projects should we keep an eye on?

Wondering what’s a Layer 1 blockchain? Read On

This article will do its best to expose three of the layer 1 blockchain projects that may not have reached their full potential yet. Of course, some promising blockchain projects may not be included in this list, and some of the layer 1 projects mentioned in this list may have an undiscovered flaw in their protocol. For example, some people had a bullish sentiment on the Terra ($LUNA) coin, until its flaw was exposed and completely obliterated the market cap. 

LUNA effectively managed to lose $40 billion of cryptocurrency market cap in the span of less than a week. We have done our due diligence for this listing, but even the most robust layer 1 projects can be exposed to some risk. So, what are these undiscovered layer 1 projects?

Near protocol ($NEAR)

NEAR PROTOCOL LAYER 1 BLOCKCHAIN

The NEAR protocol is considered to be similar to Solana ($SOL). However, that’s far from the reality. NEAR is certified carbon-neutral and uses the Proof of Stake (PoS) consensus mechanism combined with the sharding mechanism. This enables NEAR to be scalable while maintaining a decentralized network. 

NEAR has ample funding, shown by the fact that it has over $800 million in grants to fund developers and project founders who are building on NEAR. Finally, NEAR is cross-chain and has an EVM bridge, so that projects developed with the Ethereum Virtual Machine (EVM) can easily be bridged and deployed on the NEAR protocol.

NEAR solves a couple of scalability issues that are present on other blockchains, and is making huge amounts of effort to promote and bring developers to its blockchain. 

Of course, there is no guarantee with anything crypto, but the NEAR protocol does have a few advantages over other blockchains. Coupled with fewer disadvantages compared to leading L1 protocols like Solana (less risk of outages), NEAR becomes an interesting L1 project that is worth keeping an eye on. Let’s pay extra attention to Move to Earn (M2E) games that are deployed on the NEAR blockchain.

While NEAR seems to be doing good with scalability, there are other layer 1 blockchain projects with scalability issues. Here are 3 examples. 

Cosmos Hub ($ATOM)

COSMOS PROTOCOL LAYER 1 BLOCKCHAIN

Cosmos ($ATOM) is similar to Polkadot ($DOT) in the sense that it aims to build the “internet of blockchains”. The large difference between Cosmos and Polkadot however is that its Tendermint protocol makes it easier than Polkadot for someone to open and create a public blockchain. Although Cosmos does not have as many grants and incentives to build on its network compared to NEAR, Cosmos provides a developer portal, making it easy to get started. 

We must remind everyone that the Terra ($LUNA) blockchain was developed on the Cosmos ecosystem, so clearly not every blockchain that uses Cosmos is fully safe and audited. However, as long as more people are building more blockchains on the Cosmos ecosystem, the underlying asset for Cosmos ($ATOM) may develop more utility and therefore may increase in price. Therefore, Cosmos is another L1 that is worth keeping an eye on. Let’s pay extra attention to the new blockchains that are being built with Cosmos; the more there are, the better it is for ATOM.

Quant ($QNT)

QUANT PROTOCOL LAYER 1 BLOCKCHAIN

According to its website, Quant is “collecting all the world’s distributed ledgers for faster, more efficient growth”. Quant is focusing on enterprise-level blockchains, and is coming up with technologies and methods to interconnect enterprise-level blockchains. Using The Over Ledger technology, Quant can reimagine how various enterprises and blockchains can communicate with one another. In many ways, Quant can help developers build multi-chain, multi-scale web applications for various enterprises

Quant has a circulating supply of less than 15 million coins, which means that it is rarer than $BTC. By connecting multiple enterprise-level blockchains that would otherwise be incompatible with one another, Quant is another Layer 1 blockchain project to keep an eye on. We could be paying extra attention to this blockchain once more and more large enterprises decide to use Quant’s Overledger technology to solve many of their blockchain problems.

Don’t miss the Lessons Learned from the Crypto Collapse

The Bottom Line

This article presents some L1 blockchain projects worth seeing how they evolve. We have spotted these three L1 blockchains, but new L1 blockchains can surface and make our picks obsolete.

Many experts agree that one of the best indicators for an L1 blockchain is the number of holders and the number of new adopters that are using the blockchain. Therefore, as long as we observe more and more high-quality projects being built on these L1 blockchains, we may see the price of these blockchains increase.

These AAA projects have not yet been built, so time will tell if these L1 blockchains will remain relevant in the future or not. Which L1 blockchains do you have your eyes on in 2022?

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