Today, the crypto market is saturated with thousands of projects, all of them promising to change society. Unfortunately, many of them will fail, simply because they don’t solve any real problems in the real world. That’s why as an investor, you need to focus on projects with sound fundamentals. One project that has a good future in the blockchain ecosystem is the Gravity Protocol. Gravity is a blockchain protocol that is based on Graphene, and offers open-source frameworks for Small and Medium-sized enterprises. It does this through the delegated proof-of -importance algorithm. A look at some of the key defining features of the gravity protocol point to a project that is not only practical, but also futuristic. Take a look at some of its defining features below.
- It allows for active staking
Most cryptos that allow for staking make use of the delegated proof-of-stake, which means that for you to earn dividends, you have to hold coins in your wallet. While this is great for maintaining the network, it only encourages coin HODLing, and this is counterproductive to the growth of crypto. For crypto to grow, there has to be an incentive for holders to spend their cryptos in everyday business. The Gravity Protocol is one of the few that encourage active coin usage. It is able to achieve this by making of the proof-of-importance algorithm, which rewards investors for actively spending their coins. In short, the Gravity Protocol is designed for growth in the blockchain ecosystem, and this is the future that all other blockchains are aiming for.
- Token price stability
One of the biggest reasons why cryptocurrencies have not been adopted widely is because of their price instability. No business wants to deal with a currency whose value might fluctuate by 10-20% in a day. It might be good for speculators, but it’s just not good for use in a business setup. That’s why steam, an online game company, dropped bitcoin as a payment in 2017. Gravity Protocol deals with this problem through the adaptive emissions algorithm. This ensures that tokens are only released into the market based on the adoption of the Gravity Protocol. This way, the value of the tokens will always reflect its actual rates of adoption. This allows this token to grow in value in a more stable manner, without the high levels of speculation that characterize the rest of the market. One thing that this system guarantees is that more businesses will be adopting Gravity Protocol tokens for everyday transactions, and that’s great for its long-term value growth.
- It adheres to the core aspects of decentralization
Decentralization was the main reason why blockchain technology has become so popular. Unfortunately, more and more cryptos are increasingly losing out on decentralization due to centralized mining, and the increased centralized nature of exchanges. That’s not the case with the Gravity Protocol. Part of its roadmap is the launch of a decentralized exchange, where users will directly trade their tokens without any third parties. The roadmap also includes adding privacy features to allow for anonymous transactions. That’s the definition of staying true to the roots of blockchain technology, something that will take gravity protocol to great heights in the future.
Sounds like an interesting project, right? Well, currently they are doing a test net that runs from the 25th of May to the 20th of June. In this period, developers and graphene enthusiasts can test it, to help discover any vulnerabilities and other areas that can be improved. The Gravity team has set aside 10% of the initial ZGV tokens as a reward to all those contribute, and serve to make the network better.