Some Important Cryptocurrencies In The Crypto World
Bitcoin set the standard for cryptocurrencies and became the face of a decentralized peer-to-peer network, crypto mining, and everything in between. But over the years, as more and more cryptocurrencies entered the market, Bitcoin is not the only champ to bet on. Cryptocurrencies like Ethereum, Ripple, dogecoin, and others have gained massive popularity since their release. The situation is such that every ‘altcoin’ is valuable enough to become a unicorn enterprise on a traditional stock exchange. The current top ten cryptocurrencies together have a value of over $1.2 trillion.
So, which are these altcoins that hold promise and lured investors into investing in them?
Ethereum is the first and most prominent Bitcoin alternative in the market. It is a decentralized platform enabling smart contracts and decentralized applications (dapps) construction. It also runs without any fraud, control, downtime, or involvement from a third party. Ethereum’s goal is to create a decentralized ensemble of financial products for everyone to use freely without the case of faith, nationality, or ethnicity.
All applications on Ethereum use ether (platform-specific cryptographic token) to run. Ether serves as transportation within the Ethereum network, where developers use it to develop apps inside Ethereum. Right now, investors use ether to purchase other digital cryptocurrencies. The cryptocurrency is the second-largest digital token after Bitcoin by market capital.
A talented MIT graduate, and former Google engineer, Charlie Lee, created Litecoin in 2011. The altcoin was the first to follow Bitcoin, and many call it “silver to Bitcoin’s gold.” Litecoin relies on an open-source global payment network without any intervention from a central authority. The token offers a faster block generation rate which means a quicker transaction confirmation time. It also uses “script” as a proof of work that anyone can decode through consumer-grade CPUs.
Polkadot is a one-of-a-kind proof-of-stake altcoin that aims to deliver interoperability with various blockchains. One of its protocols defines connecting “permissioned” and “non-permissioned” blockchains and oracles so that systems can function together under a single sphere.
Gavin Wood, the creator of Polkadot, was among the core founding members of Ethereum but had differing views about the Ethereum project. Where Ethereum has its own ecosystem for developers to create applications, Polkadot allows developers to create their blockchain. They can do so while using Polkadot’s already existing security.
A bunch of cryptography experts, mathematicians, and engineers created Cardano keeping a research-based approach in mind. The team started the Cardano blockchain after extensive peer-reviewed research and experiments. Those behind the project have successfully published more than 90 papers on blockchain technology across various topics.
The team’s motive behind Cardano is to create the world’s financial operating system through decentralized financial products establishment much like Ethereum. Cardano will also provide solutions to voter fraud, legal contract tracing, interoperability, etc.
The cryptocurrency market has exploded in recent years, especially during the global pandemic. These digital coins offer excellent digital services and applications that make them viable investment prospects. The crypto exchanges offer commendable security like id verification that creates a secure ecosystem for everyone. And with news like El Salvador making Bitcoin their official currency, we can assume the future for cryptocurrencies to be a bright one.