Top 5 Sharding Cryptos to invest in 2022 by Blue Royal Investments Crypto Analyst

London, UK — Sharding is a method for computers to make the database more manageable. The use of this technique in blockchains is relatively new. Sharding proves itself to be important when crypto is concerned because networks have scaling difficulties. As the scope of cryptocurrency is increasing, the number of users is also increasing, causing traffic on network platforms. Ethereum, one of the biggest blockchain networks, is considering sharding to manage its growing users and transactions.

What is Sharding?

Sharding is a solution to the problem of scaling in a blockchain network. It involves breaking a blockchain into multiple pieces or shards and storing them in different places. The shards are smaller and faster, making them easily manageable. The computational burden can be reduced by storing data across different computers. This process easily loads traffic and allows the network to process a larger number of transactions.

Sharding is better than other protocols as it solves the problem of scalability and increases the number of transactions in blockchains.

What are famous Sharding Networks?

  1. Ethereum: ETH is one of the world’s most popular blockchains for building decentralized projects. It will be using the sharding technique to offload traffic and increase its number of transactions per second. This upgrade will give rise to the first blockchain shards set in 2023.
  2. Zilliqa: Zilliqa is a blockchain that is already using the sharding method. One of the main attributes of Zilliqa includes providing scalability through sharding.

According to Dominic Griffin, a crypto analyst at Blue Royal Investments, Sharding projects can be profitable for investors as they will increase the speed of transactions per second. Sharding increases the efficiency of the blockchain network and it looks like the next generation blockchains will use this technology extensively, which will push the prices of existing sharding networks upward, making them highly profitable investments. Some of the top existing sharding protocols are as follows:

1. Elrond (EGLD):

Elrond is a sharded blockchain project built with the inspiration of Zilliqa. It was launched in July 2020. The main aim of Elrond is to provide decentralization, security, and scalability for distributed apps. The main focus of this project is cross-chain interoperability, developer support, and achieving maximum efficiency. Elrond Network is designed to handle transaction speed on par with major internet platforms.

Elrond ecosystem has been growing fastly during the past few months. Elrond acquired Utrust: a web-3 company, and bought Truspay. The Elrond’s price remains slightly above the short and longer-term moving averages, and there are chances it will be raised to $250 in the future.

The EGLD token is Elrond’s native currency. Today’s live Elrond’s price is $69.35. EGLD is currently ranked #40 in the world, with a live market capitalization of $1,525,630,679. The circulating supply is 22,001,784.47 EGLD coins, and the maximum supply is 31,415,926 coins.

2. Near Protocol (NEAR):

Near Protocol is another blockchain project embracing the concept of sharding. It is a fast-growing network that began to implement its Nightshade sharding upgrade in November 2021, whose migration is expected to be completed in the coming months.

Near is also growing by attracting developers. NEAR has a total value locked of over $203 million. Ref Finance and Meta Pool are one of its top network apps. The NEAR price has also show recovery and is approaching the important resistance at $13.97, which was the highest level in Q1 of 2022. Therefore, the coin is likely to keep rising.

NEAT Protocol’s native toke is NEAR. It is currently ranked #23, with a live market capitalization of $3,461,430,206. The current price of NEAR is $4.95. There are 699,663,772.00 NEAR coins in circulation, with a maximum supply of 1,000,000,000 NEAR coins.

3. Polkadot (DOT):

Polkadot is a leading blockchain project that enables developers to build high-performing projects. It is a sharded blockchain that contains heterogeneous shards. Relay Chain, the foundation of this project, helps apps communicate regardless of their technology. Another distinct feature of Polkadot is Parachain, an independent app with its cryptocurrency.

On Polkadot, computations are inherently independent and performed by each shard, and as a result, network capacity is increased.

Polkadot’s price has been in a positive trend after it bottomed at $14 in February 2022. It has risen to about $22, and there are chances that it will do well in the future as its ecosystem grows.

The current ranking of DOT is #11, with a market capitalization of $9,519,386,414. It has a total quantity of 1,103,303,471 DOT coins and a circulating circulation of 987,579,314.96 DOT coins with a current price of $9.64.

4. Zilliqa (ZIL):

Zilliqa is a blockchain platform that securely provides scaling in an open, permissionless distributed network. It uses Network sharding, which makes it truly scalable. On Zilliqa, due to increased processing power and distribution of information, exponential scalability increases.

The native token of Zilliqa is ZIL. This cryptocurrency aims to use sharding to solve scalability issues facing many blockchains. Zilliqa is a user-friendly platform. The transaction costs are economically low on this platform.

Zilliqa has four individual blockchain shards. The nodes validate every transaction within the network within one of these shards.

ZIL is currently ranked #71 with a live market capitalization of $613,577,686. Its current market price is $0.04778. There are 12.84B ZIL coins in circulation, with a maximum supply of 21,000,000,000 ZIL coins.

5. Ontology (ONT):

The Ontology blockchain brings high-speed, low-cost public blockchain bringing decentralized identity and data solutions to Web3. Ontology ensures frictionless compatibility with Ethereum through Ontology’s Ethereum Virtual Machine (EVM).

It is a layer-2 blockchain that is designed to provide users and enterprises the flexibility to build blockchain-based solutions that suit their needs, ensuring regulatory compliance. The native token of Ontology is ONT. This blockchain provides transparency, increased privacy, and trust at a low cost.

ONT is currently ranked #128 with a live market capitalization of $233,361,234. There are 875,249,524.00 ONT coins in circulation, with 1,000,000,000 maximum ONT coins. The current market price of ONT is $0.2666.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find in this article and wish to rely upon, whether to make an investment decision or otherwise.

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