The 2021 year was a great year for cryptocurrencies. It went from being a fringe subject to being a disruptor to the financial system, and 2021 witnessed the rapid growth of cryptocurrency’s value, along with a shift of momentum for mainstream adoption and technological adopt. Between NFTs, metaverse, multichain projects, layer-2 scaling solutions, blockchain 3.0, web 3.0, play-to-earn games – there’s a lot that has happened in 2021.
Although it’s too soon to know how the cryptocurrencyverse will develop in 2022. Several projects have raised the bar with solutions that leverage the blockchain technology for a wide range of practical use cases. Here are five intriguing projects across the DeFi, trading, NFT, DAO, and security sectors poised to play key roles in the crypto ecosystem’s accelerating maturation.
DeFi is a way to connect real-world assets.
TradFi (traditional financing) and DeFi (“decentralized finance”) are, by design, two distinct worlds. There isn’t much overlap between ecosystems, except the respective challenges each faces. DeFi’s market structure is extremely fragmented which can lead to liquidity problems. However, TradFi’s centralized nature makes it difficult for small to medium-sized businesses to get funding when and where they need.
Centrifuge, the next evolution in the development of blockchain technology has designed the first decentralized lending protocol. The protocol connects real-world assets to the onchain ecosystem. Centrifuge connects investors and borrowers in a distributed manner. Borrowers can use their actual-world assets to secure financing through the platform. As an alternative, investors may also be able to diversify by purchasing RWA-backed collateralized loans with low correlation to the cryptocurrency market.
Centrifuge lets borrowers tokenize real world assets to be used as collateral for loans from the lending platform dApp Tinlake. It does not have intermediaries, and it is accessible to everyone. Interoperability is Centrifuge’s core. It is built on Polkadot, and the dApp Tinlake of that platform is connected with Ethereum. This allows users to leverage both the DeFi liquidity and speed of Polkadot.
Centrifuge is launching DeFi 2.0, connecting two ecosystems. It also unlocks the trillion-dollar global asset market. This will allow Centrifuge to increase liquidity in the DeFi ecosystem.
Untangling the Complex Crypto Trading Platform
Although cryptocurrency has gained mainstream acceptance, only a small percentage of the world’s population actually uses it. With the complex CEX and DEX options as well as the foreign idea of digital currency, there is a higher barrier to entry.
Atani is a crypto trading platform that combines all the best features of traditional and digital currencies. It aims to make this a reality by 2022. Atani believes affordability and accessibility are the two key factors that will drive crypto adoption. The platform offers an easy-to-use, cost-effective solution for crypto trading and investing.
Atani’s platform gives users access to numerous exchanges as well tax reporting, charts, notification management and many other useful features. Atani created an exchange aggregator to allow users seamless trades across 20 top exchanges, including Kraken and Binance. Furthermore, the platform doesn’t add any fees on top of the transparent costs incurred from each exchange, making it a worthwhile destination for both beginners and professional traders alike.
Blockchain Ecosystem Security Enhancement
It was 37% more likely that crypto fraudsters used rug pulls than in 2020. That is a stark reminder of how the security of the blockchain ecosystem needs to be improved. Conditions are poised to change drastically in 2022 with Avarta’s state-of-the-art on-chain identity verification and authentication service.
Avarta’s unique approach to addressing security issues in blockchain authentication is what makes it stand out. Current identity authentication options include pseudonymous solutions and centralized customer identification programmes, which omit the principle of decentralization.
Avarta offers a four-in-one solution to the blockchain ecosystem. This includes a biometrically secure multichain wallet and an anti-bot mechanism that allows for DEX listing. A multisignature wallet and multichain identity management. With Avarta’s military-grade security-enabled identity wallet, users exert complete control over their private keys. Plus, the platform’s cross-chain support enables users to consolidate all of their keys into a single wallet, removing the need to store multiple keys, passwords, and seed phrases.
Additionally, Avarta issues an Avarta Trust Score based on each user’s on-chain transaction history. It works in the same manner as TradFi’s credit score. However, it allows users to have full control over who their information is revealed to. Since the entire DeFi ecosystem relies on “trust,” the Avarta Trust Score will play a key role in lowering the rate of scams and rug pulls while helping DeFi expand its dominance.
Utilize NFTs To Unlock A World Of Innovative Funding Opportunities
Most people associate NFT with high-priced digital collectibles. But there’s so much potential in NFTs that’s yet to be unlocked. NFTs experienced a rapid growth in 2021, with trade volumes surpassing all prior records. Solv Protocol is an open, transparent, and free-flowing allocation trading platform on-chain that aims to make NFTs more useful for a variety of financial uses.
Solv Protocol has disrupted traditional crowdfunding by combining NFTs and DeFi. Recently, the platform introduced the ERC-3525 token standards. These tokens combine the liquidity feature from the ERC-20 tokens as well as the descriptive attributes and ERC-721 tokens. Users can create complicated financial contracts quickly using this token standard. This new NFT class, called Financial NFTs is based on the ERC-3525 token standards to represent the multi-dimensional assets attributes in splittable NFTs.
Since each Financial NFT, also called “vouchers,” combine distinct features of the ERC-20 and ERC-721 token standards, they can be split into smaller parts, helping users flexibly trade, split, merge-lock, or use them in any other manner they prefer. ERC-35525 tokens are used to create TradFi models. This includes fixed-term deposit options, convertible bonds, vesting and fixed-term investments.
This platform also offers the unique Initial Voucher Offering model (IVO) for fundraising. It allows project to raise funds through issuing ERC-35525 tokens. The IVO offers more flexibility considering each “voucher” can be split into smaller parts while maintaining similar release parameters depending on the project’s tokenomics and long-term goals.
Leading the effort to build a DAO for NFT creators
Global investors are stunned at the incredible demand and rapid growth in NFTs for 2021. NFT sales have skyrocketed as celebrities, influencers and other well-known personalities joined the NFT wagon. The burgeoning market is driven primarily by just a handful of key markets, despite their high monetary value.
Creators have the opportunity to earn royalties on all future sales of original works through these marketplaces. The downside is that these marketplaces do not offer royalties for creators if they sell on the exact same platform as the NFT was first created. It limits the creators earning potential.
CXIP (a minting as-a–service platform) offers personalized smart contract options for content creators. These contracts highlight the contribution they made to every NFT through on-chain originance. CXIP makes sure creators get their fair share through these measures regardless of whether the NFT was purchased on a different platform.
CXIP will also be airdropping NFTs for every creator that has ever created NFTs using Ethereum. This is to further enhance the value proposition. Every user will be able to claim $CXIP tokens, and can join the CXIP DAO which is the biggest DAO (decentralized autonomous organisation) of creators worldwide. CXIP DAO is made up of brand ambassadors such as Pharell Williams and Chad Knight. Justin Arsham and Jeff Gluck are also part of the CXIP DAO.
Blockchain: Looking ahead to a brighter, more bold future
These projects will continue to be important in the development of blockchain technology and help to attract wider attention by 2022. These are only a handful of the many promising projects that will help to build the foundation for Web 3.0 or DeFi 2.0.