An increasing number of projects have launched on the decentralized cryptocurrency list, promising to tackle the issues Ethereum (ETH) faces such as scalability, low transaction fees, and speed.
Polygon (MATIC), Optimism (OP), and Arbitrum (ARB) are three Layer 2 projects, each with the same goal: to solve Ethereum’s shortcomings. Darya Yatchenko, lead copywriter at Pixeplex, shares insights on the distinct differences between these projects as investors and developers struggle to determine which is the best for their activities.
InQubeta (QUBE) provides a different narrative and has been gaining attention. This promising AI crypto venture offers fractionated blockchain investments, allowing investors to diversify their portfolios and purchase non-fungible tokens (NFTs) representing utility in AI tech startups.
This article explores this AI token and compares the features of the top three Ethereum contenders to help determine which is the most efficient.
InQubeta (QUBE): Unique Model Supports Growth of AI Startups
Investors seeking substantial profits are turning their sights to InQubeta, a promising AI-centric token on the blockchain. This project has extensively bought into the AI hype, with a remarkable narrative hitting a bullish trend. The project has raised upwards of $8.6 million in its thriving presale. The proceeds will be used to develop a peer-to-peer marketplace where investors can trade utility-based NFTs using their QUBE tokens.
With its unique model, InQubeta aims to provide a means for investors to support the growth of the AI industry through crowdfunding on the blockchain. The project mints utility in these startups into trending NFTs, allowing token holders to buy blocks in these companies, supporting their vision and benefiting from their growth. The project is in stage 7 of its presale, selling over 740 million tokens. With only three stages left, InQubeta is one of the top altcoins to watch, trading at $0.0224 and offering a 37% increase against its proposed launch price of $0.0308 apiece.
When considering top investment options, InQubeta stands out with remarkable features that will help it stand the test of time. Its deflationary mechanism, enhanced with a token burn feature, ensures that its supply is controlled and demand increases over time. Investors can also enjoy staking benefits from a dedicated rewards pool funded by a 5% sell tax.
Polygon (MATIC): Speed For Ethereum Transactions
Polygon is a scaling EVM-compatible solution that operates as a side chain with its consensus algorithm, running parallel with the Ethereum mainnet. This stand-alone protocol can function without the main network. Its feature as a side chain allows MATIC to support the connection and building of Ethereum-compatible networks.
Polygon uses a Proof of Stake (PoS) consensus mechanism, which supports lower gas fees and outperforms Ethereum in transaction speed, processing up to 65,000 TPS, five times more. The project also uses other Layer 2 scaling technologies, including Plasma, Optimistic Rollups, and ZK-rollups. It offers flexibility, allowing developers to add features outside the more rigid mainnet, but users are also aware of the reduced security MATIC offers.
Optimism (OP): Enhanced Ethereum Scalability
Optimism uses Optimistic Rollups in its model, bunching transactions together before submitting them to the mainnet, thereby enhancing scalability. This chain inherits the best features of Ethereum, a secure consensus mechanism and security features, allowing users to enjoy multiple benefits. OP also uses the existing Ethereum tooling, preventing lengthy onboarding and allowing the speedy building of apps on the chain.
Using Optimism, users can enjoy accessibility and affordability on the blockchain. The token is also EVM compatible, accounting for over 39.5% of the total Layer 2 Total-Value Locked (TVL). OP has its downsides, though, requiring higher costs for fraud-proof verification.
Arbitrum (ARB): Advanced Scalability For ETH Smart Contracts
Arbitrum uses Optimistic Rollups, so it has similar features to Optimism. Yet, the network is distinct, offering several features that set it apart. The chain streamlines transactions on Ethereum smart contracts, improving them and boosting scalability with added privacy features. ARB is a top Layer 2 solution, supporting unmodified EVM contracts using Ethereum’s security.
Compared to Optimism, ARB boasts a higher transaction capacity and relies less on EVM for fraud-proof verification. The project has its virtual machine, the Arbitrum Virtual Machine, and continues to introduce new chains to lower transaction costs. Its most recent addition, Arbitrum Nova, lowers costs by minimizing data storage on Ethereum.
Conclusion
According to a top analyst, determining the top Layer 2 protocol on the decentralized cryptocurrency list that most efficiently facilitates the creation of smart contracts on the Layer 1 chain, Ethereum, depends on the project’s requirements. Polygon stands apart, beating the others for speed and flexibility and benefiting from its large and well-studied ecosystem. Optimism and Arbitrum, rollups that rely on the main network, are better for increased security and reduced fees. Investors seeking top altcoins to watch also consider InQubeta and its surging presale, accumulating tokens, and awaiting launch for immense returns.
