What to look for when investing in blockchain technology.
1) Strong foundation
The underlying blockchain protocol is key to providing end users with a secure & trusted network. Look for blockchain based on peer reviewed research that can mathematically verify their mechanisms.
2) Smart contracts
Supporting smart contracts on blockchain is essential to wide adoption and real world use.
3) Decentralised
Decentralised blockchains are inherently more sustainable & scalable compared to blockchains that rely on a centralised network.
4) Proof of stake
Unlike Bitcoin blockchain which is built on “Proof of Work” which requires power intensive hardware to produce new blocks through mining, Proof of Stake creates new blocks by selecting participants who own a stake in the blockchain. Proof of stake provides a sustainable & scalable solution.
5) Governance
The last but the most important factor to supporting long term growth & adoption. What governance model do they have in place to make development decisions? Do they have a Treasury model that funds ongoing development years after initial coin offerings?
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cardanoX is not a financial advisor. Please conduct your own research for your own situation or seek independant qualified advice.
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