Cryptocurrency has become a common point of discussion in most finance related conversations. The digital currency has slowly begun to gain acceptance in global market as an alternate mode of payment to fiat currency. For the unversed, cryptocurrency is a type of electronic money that is managed using blockchain technology. Blockchains are advanced computer networks that are created using mathematics and coding. Unlike fiat currencies that are issued by governments and regulated by banking authorities, cryptocurrency is completely decentralised and is not issued or regulated by any government or authority.
Here is a list of the 5 popular cryptocurrencies.
Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet.
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
Importance of bitcoin
Bitcoin can bring significant innovation in payment systems and the benefits of such innovation are often considered to be far beyond their potential drawbacks. Bitcoin is designed to be a huge step forward in making money more secure and could also act as a significant protection against many forms of financial crime.
With bitcoin technology, humanity can easily manage and access information about money. Thus, adopting Bitcoin can be an excellent way for society to eliminate ills like corruption. That's because the community can track any Bitcoin transaction in the public ledger when people use Bitcoin to transfer money
Ethereum is a cryptocurrency network that uses blockchain technology to facilitate smart contracts. It is a decentralised software that allows smart contracts to be built on its network and run on it without any control or fear of fraud by a third party. Ether is the token used to enable transactions on the Ethereum network. Ether is the native cryptocurrency of the platform. Amongst cryptocurrencies, Ether is second only to Bitcoin in market capitalization.
Importance of Ethereum
Ethereum is the largest and most well-established, open-ended decentralized software platform. Ethereum enables the deployment of smart contracts and decentralized applications to be built and run without any downtime, fraud, control or interference from a third party. Ethereum comes complete with its own programming language which runs on a blockchain, enabling developers to build and run distributed applications.
Dogecoin is a cryptocurrency, like Bitcoin or Ethereum although it’s a very different animal than either of these popular coins. Dogecoin was originally created at least in part as a lighthearted joke for crypto enthusiasts, and took its name from a once-popular meme. Despite this unusual origin story, it has exploded in popularity in 2021 as of writing, Dogecoin has become the fifth largest cryptocurrency by market cap.
Today Dogecoin is no joke, having exploded in value and gained more than 5,000% in 2021. Among its boosters is Tesla CEO Elon Musk, who called Dogecoin his favorite cryptocurrency. Musk also named Dogecoin the “people’s crypto,” and promised to plant a physical Dogecoin token on the moon.
Importance of dodge coin
Dogecoin (DOGE) is a widely recognized cryptocurrency that parodies other blockchain projects. It was created to serve as an educational tool, aiming to reach a wider audience than other more serious cryptocurrencies through its focus on social media and popular culture.
The significance of Dogecoin has continued to spill over into other aspects of popular culture as well. An example of this is Doge miner- a web-based video game also available on the Google Play store that simulates the mining of Dogecoin. It teaches players the basic logistics of cryptocurrency mining in a fun and approachable way, leading many players to deeper involvement in the crypto community at large.
Cardano was created through a research-based approach by a team of mathematicians, engineers, and cryptographers. In the ecosystem of cryptocurrencies, Cardano claims to be a more sustainable and balanced coin when compared to the other cryptocurrencies.
Cardano is a public blockchain platform. It is open-source and decentralized, with consensus achieved using proof of stake. It can facilitate peer-to-peer transactions with its internal cryptocurrency, Ada.
Importance of cardano
Cardano is a proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. It combines pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems, and societies.
5) Litecoin (LTC)
Litecoin is a peer-to-peer virtual currency, which means it is not governed by a central authority. Litecoin's network offers instant, near-zero cost payments that can be conducted by individuals or institutions across the globe. Bitcoin, Litecoin, and many other cryptocurrencies use the proof-of-work (PoW) algorithm in order to secure their networks. Basically, PoW requires that one party proves to all the other participating parties in the network that a required amount of computational effort has been expended.
Importance of Litecoin
Litecoin has some inherent advantages when compared to bitcoin. It was founded with the goal of prioritizing transaction speed, and this is a major reason for its popularity. The bitcoin network’s average transaction confirmation time is currently just under nine minutes per transaction, while Litecoin's is roughly 2.5 minutes. Litecoin's network can handle more transactions because of its shorter block generation time.
Litecoin, like all virtual currencies, is a form of digital money. Both individuals and institutions can use Litecoin to purchase things and to transfer funds between accounts. Participants can make transactions with Litecoin without the use of an intermediary like a bank, credit card company, or payment processing service.