Why Investors Should Be Paying Attention to ARK

Today we’re going to talk about yet another decentralized ecosystem that has the goal of bringing blockchain to the masses. There are many of these, but ARK is actually ranked quite highly, at #65 in terms of market capitalization. I’d like to go into some of the reasons for that difference, as the team and realization of the roadmap have helped ARK to stand apart nicely.

ARK’s Core Offering

There are a lot of different ways to describe ARK, but it is basically a sandbox ecosystem that allows developers to create their own blockchain. They are permitted to clone the Ark blockchain and make changes as they see fit. This is “democratizing” the technology so there are no limits to who can design their own blockchain.

SmartBridges are the technology that allows Ark to bridge different blockchains to each other. For example, Ethereum could use Ark as an intermediary to link up to the Bitcoin blockchain. This, combined with the alternative programming languages (there are 18 of them) allows for easily deployable blockchains for all.

The Design of Ark

Ark uses a “Delegated Proof of Stake” (DPoS) consensus algorithm, which depends on delegates to secure the blockchain, rather than miners. Only 51 token holders can be delegates, and it costs 1 ARK to vote (or unvote) for a delegate. This alternative method of governance allows for token holders to gain power based on the merit of their ideas and the proposals they submit. Some will be for profit sharing, and others will want to fund development projects. This is why the voting matters so much.

The current block time for ARK is 8 seconds, which presents a significant benefit when compared to other protocols. The second version of the main net was launched in November 2018, which shows the development team is moving forward with their roadmap (rather than just talking about it).

The blockchain creation system is not currently in effect yet, but once it is, you can imagine there would be a significant increase in the demand for ARK. This could be attributed to the natural demand created when users need ARK to create and maintain blockchains.

The Case for a Trade

ARK was bouncing around in the 0.00009 BTC to 0.00012 BTC range for the last month or so, and then went through 3 spikes. Now it rests in the 0.00012 BTC to 0.00015 BTC range. The recommended trade here is to take a little extra risk and play the potential for it to break through another resistance level.

The coin can be bought on Binance, and if it dips below 0.00012 BTC, this trade should probably be abandoned. In general, the Ark platform is centered around creating a solid user experience and incorporating many other blockchains and coding languages. With interoperability being the top priority, and a roadmap well on its way to being realized, ARK does stand out from many of the other buzzword spouting coins we have seen recently. Although we didn’t discuss a long-term play here, it is in a nice “middle” range in terms of market capitalizations, and could show upside in the long-term as more goal posts are reached.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.