Key differences between the crypto segments
Everyone who studies crypto and is a user of this disruptive and sophisticated technology has realized that the projects were born to supply different demands. For there to be investor interest, these tokens/coins need to capture value and, in fact, bring user demand.
Blockchain came to revolutionize the way we interact with the internet and money. With this in mind, several projects aim to solve everyday issues and be useful as a business. In the crypto universe we know several different types of projects from play to earn to decentralized finance (DeFi).
In this article we will describe more about some of the best known categories of crypto and how they work.
In this article we will describe more about some of the most well-known categories in the crypto universe and how they work.
- Layer 1
This term refers to a base blockchain capable of validating and finalizing transactions without the need for another network, they usually have their own token and attract developers to work on decentralized applications that can run inside this native blockchain.
Very well structured solutions, by definition bring more demand for cryptocurrency as several applications can be built on top of the main layer, such as:
Games, DeFi, Metaverse and Innovative Solutions through dApps
By having its own blockchain, this segment provides the most interesting investments, thinking about longevity and demand for the project.
Examples: Ethereum, Solana, Avalanche, Elrond and Near
- Layer 2
They are also called secondary networks, working as underlying structures that assist in processing the transactions of the main blockchain.
In turn, the L2s bring demand, but with the limitation of working for the main layer solving scalability issues that are crucial to increase the number of transactions of the main layer.
Some L2s ended up opening other fronts, like Polygon for example, which is now expanding its operations to NFTs as well and signing several partnerships with large real-world companies.
Examples: Metis DAO, Arbitrum, Optimism and Loopring
This name comes from Decentralized Finance, we know that in the traditional model of finance (banks) we can have access to various financial tools such as loans, investments, among others. DeFi brings similar mechanics to what we already know, but through decentralized platforms and their smart contracts eliminating intermediaries from the negotiations.
Within the L1 ecosystem, we have the decentralized applications (dApps) that can have several functions, one of them is DeFi. Within decentralized finance we can swap tokens, lend and borrow cryptos, provide liquidity for protocols, all through smart contracts with no interaction with people.
To borrow it is necessary to leave your cryptocurrency as collateral in order to have access to credit, if the market oscillates and the price of the asset falls to its limit point specified at the time of contracting, the collateral margin will be executed to honor the debt.
- Games and Metaverse
Another segment that has a lot to grow is that of game tokens and metaverse, there is a gigantic economy in the real world revolving around games, but in a centralized way where only the company responsible for producing the game is rewarded.
In a decentralized universe like crypto, through the blockchain it is already possible for players to have ownership over the items found or purchased in the game, being able to monetize them through NFTs, selling or renting within a marketplace. In this way, everyone involved within this economy can profit, many tokens entitling them to participate in the governance of the projects.
In all the cases mentioned above, we should do some research to understand the usefulness of the token, its ecosystem, and its economy, so as to increase the chance that your investment will prosper.
- Innovative Solutions
These are applications developed to be disruptive as a product, we can have decentralized mobility applications, innovative product access platforms, among other solutions that can bring innovation through blockchain aiming at decentralization.
There are several ways to invest in crypto and several projects that aim to solve everyday issues. To better understand what each project aims to do, research is needed to delve deeper into the proposed solutions.
With a due diligence already done it will be possible to understand the reasons to invest or not invest in certain projects. Understanding the economic mechanics of the project is extremely necessary to know if the investment makes sense or not.
Now that you know the different types of segments within the crypto universe, it is easier to understand why some tokens/coins have more demand than others.
Uniera has investing in game changing business models in the blockchain sector Uniera is dedicated to supporting early stage (pre-seed, seed and private) projects across the Web 3.0 space, including DeFi, Metaverse/GameFi, DAOs, and infrastructure layers. Through our investment vehicle in Cayman Islands, we manage proprietary and qualified investor`s funds into some of the most promising opportunities in crypto market.
Founded in March 2021, Uniera is a crypto exchange and manager dedicated to the portfolio of professional investors and family offices. Conceived by partners Caio Villa and Gustavo Albanesi, the company seeks to become the the main access route for investors to the best projects in the digital assets market. With tokens audited by Grant Thornton, one of the largest and most respected in the segment, Uniera seeks to raise the level of reliability in cryptocurrency trading in the country.
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