The most popular cryptocurrency of course belongs to Bitcoin (BTC). Its closest competitor, in terms of market capitalization, is the cryptocurrency of Ethereum (ETH). These leaders are followed by other popular currencies, such as Ripple (XRP), Bitcoin Cash (BCH), and Litecoin (LTC).
1. Bitcoin (BTC)
Bitcoin is the first cryptocurrency to be created by anonymous Satoshi Nakamoto. The developer or developers of this currency wanted to create an inflation-resistant currency, so the Bitcoin network was programmed to spend a total of $ 21 million. bitcoins. Bitcoin is considered the gold standard in the cryptocurrency market, on the basis of which new cryptocurrencies are also created.
2. Ethereum (ETH)
Ethereum is not only a cryptocurrency but also a platform for decentralized services based on blockchain technology. Ethereum simplifies the implementation of blockchain technology in a variety of areas, as this platform can be used to develop a variety of applications. This cryptocurrency was proposed by Vitalic Buterin and appeared in open source in 2015.
3. Ripple (XRP)
Ripple is a cryptocurrency that is better known for its blockchain-based financial payment platform than for the cryptocurrency XRP released. Ripple was created to help make payments as quickly as possible. Typically, payment in XRP currency takes about 4 seconds - much faster than any other cryptocurrency. Ripple also differs from other cryptocurrencies in that the entire amount of XRP was issued when the payment system was launched, so Ripple is not a "mined" currency.
4. Bitcoin Cash (BCH)
Bitcoin Cash is a cryptocurrency that originated directly from the Bitcoin currency. The story of the emergence of Bitcoin Cash is indeed very interesting. Since Bitcoin is the most popular cryptocurrency, it is in this that most settlements take place. As the number of settlements increased, the "cashiers" were no longer able to approve the performed financial transactions, therefore the clearing of orders took a long time. In order to solve this problem, on August 1, 2017. The so-called "Hard Fork" branch took place in the Bitcoin network block chain, during which one Bitcoin blockchain branched into two new block chains.
5. LiteCoin (LTC)
Litecoin is one of the first cryptocurrencies to appear shortly after bitcoin. Litecoin presents itself as silver in the digital world, given that Bitcoin is the gold of the digital world.
Cryptocurrencies can be used not only for settlement purposes but also as savings or investment instruments.
Cryptocurrencies are generally divided into two main categories:
- Crypto coins
Crypto coins are means of payment operating in separate and independent networks based on blockchain technology. The most popular cryptocurrency is known to be Bitcoin. Because the Bitcoin network is open source and anyone can see how it is programmed, other cryptomonads based on the protocol of this network, such as Litecoin, Namecoin, or Bitcoin Cash, will soon be available. On the other hand, there are also cryptomonads that do not originate from the open-source of the Bitcoin network. The creators of these cryptos coupled themselves program the blockchain networks in which their cryptocurrencies function, such as Ethereum, Ripple, or Monero.
Tokens are another type of cryptocurrency that helps ensure the operation and support of an already established technology platform or application. Tokens symbolize the possession of rights to a particular unit of property or service. Tokens are created and distributed during the initial public offering of tokens or Initial Coin Offering (ICO). The ICO process allows you to raise funds for the development of a specific project while giving token buyers certain rights.
Difference between Crypto Coins and Tokens
The main difference between crypto coins and tokens is that crypto coins always work and have their own separate blockchain network. Meanwhile, tokens do not have their own separate network and are issued on the basis of a specific cryptocurrency network. Currently, most tokens are generated and distributed on the Ethereum cryptocurrency network, which is best suited for this purpose.
© 2020 Deepesh Devarajan