Friday, December 8, 2023

What criteria should be used to evaluate different blockchains?

While the words blockchain and DeFi have been thrown around casually everywhere nowadays, very few people understand their technicalities. For instance, very few people have any idea about what makes one blockchain better than another. Going with the trend, many people invest significant amounts of money into various blockchain projects in the hope of whopping earnings. However, not all blockchain projects are the same. Making them all seem alike would be equivalent to making Google and Bing the same since they both have search engines. Before investing money into any blockchain project, investors should carefully assess various details of it. They should only invest after there are enough reasons to believe in its potential.

One of the most basic metrics to keep in mind is the blockchain’s use case. If the blockchain supports a very necessary action, it has a better chance of succeeding in the long run. For instance, a blockchain project trying to work on payment gateways would face stiff competition from other projects. On the other hand, a very niche blockchain would never reach the market capitalization that more commercial ones would do. The community is also extremely important when trying to stick to a blockchain project. With a thriving community, it is possible for any blockchain project to overcome multiple odds. A very pessimistic and bearish community, on the other hand, indicates a problem at the blockchain’s very core. Scalability is another major issue to look at, apart from governance systems and long-term vision. You should put your money into a blockchain project only after thoroughly understanding these metrics.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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