In recent years, cryptocurrencies and blockchain technology have emerged as one of the most promising investment opportunities. With the rise of decentralized finance (DeFi), non-fungible tokens (NFTs), and other blockchain-based applications, the market has witnessed a surge in interest and investment. However, choosing the right cryptocurrency to invest in can be a daunting task, especially with the plethora of options available.

In this blog, we will explore the best blockchain cryptocurrency to invest in, comparing layer-1 blockchain, infrastructure, and layer-2 scaling network.

Layer-1 Blockchain:

Layer-1 blockchain refers to the underlying blockchain technology of a cryptocurrency, which provides the basic architecture for the network. The most popular layer-1 blockchain is, of course, Bitcoin. However, Bitcoin has some limitations, such as slow transaction processing speed, high transaction fees, and scalability issues.

Ethereum is another popular layer-1 blockchain, which has gained immense popularity due to its smart contract functionality, which allows developers to build decentralized applications (dApps) on top of it. Ethereum has been the go-to platform for many blockchain-based projects and is the foundation of many DeFi protocols.

Cardano is another promising layer-1 blockchain that has recently gained traction. The Cardano network is designed to offer more scalability, interoperability, and sustainability than other blockchains, making it a promising option for long-term investment. Additionally, Cardano has a strong community, with a committed development team constantly working on new upgrades and improvements.

Infrastructure:

Infrastructure blockchain refers to the blockchain-based projects that provide essential infrastructure for blockchain technology, such as payment processing, storage, and network security. These projects are typically less volatile than layer-1 blockchain cryptocurrencies, as they have a more stable use case and are less influenced by market speculation.

Chainlink is an infrastructure blockchain that provides a decentralized oracle network, which connects smart contracts to external data sources. Chainlink is considered a critical piece of infrastructure for the DeFi space, as it provides a reliable source of off-chain data for on-chain applications.

Polkadot is another infrastructure blockchain that offers a multi-chain network, enabling interoperability between different blockchains. Polkadot provides a scalable and secure foundation for building decentralized applications and connecting disparate blockchain networks.

Layer-2 Scaling Network:

Layer-2 scaling networks refer to the solutions that are built on top of layer-1 blockchains to address scalability issues. These networks offer a second layer of processing for transactions, which allows for faster and cheaper transactions without compromising security.

One of the most popular layer-2 scaling networks is the Lightning Network, built on top of the Bitcoin blockchain. The Lightning Network enables fast and cheap transactions by moving them off the main blockchain onto a second layer, where they can be processed quickly and efficiently.

Polygon is another promising layer-2 scaling network that provides a sidechain solution for Ethereum. Polygon offers a fast and cheap alternative to Ethereum’s main blockchain, enabling developers to build decentralized applications with faster transaction processing and lower fees.

Conclusion

Investing in blockchain-based cryptocurrencies can be a lucrative opportunity, but it’s essential to carefully evaluate each project before making an investment decision. Layer-1 blockchain, infrastructure, and layer-2 scaling networks all offer unique advantages and drawbacks, and investors must understand each project’s use case and potential for long-term growth.

In the end, the best blockchain cryptocurrency to invest in will depend on your investment goals, risk tolerance, and personal preference. However, by carefully evaluating the projects and their potential, investors can make informed decisions and capitalize on the exciting opportunities that blockchain technology presents.

Learn more about Blockchain platforms:

https://www.investopedia.com/terms/b/blockchain.asp

https://www.coindesk.com/learn/blockchain-101/what-is-blockchain-technology

https://www.hyperledger.org/

https://lightning.network/

https://raiden.network/

Also Read: Discovering the Hidden Gems: The Best Low Value Cryptocurrencies to Buy and Why