Types of Cryptocurrencies
In our Previous Article we have covered about Crypto as a use case, Technology, its initial existence. But cryptocurrency did not stopped with Bitcoin. It has spread to many other coins with different purposes in the Decentralized world. In this article we will cover most of the other famous Crypto currencies, their purpose, and other categories.
Ecosystem Crypto Currencies:
Ethereum is the 2nd largest adopted cryptocurrency across the world after Bitcoin. It was released on 30 July 2015, the starting price was USD 0.308/ETH.
Ethereum(ETH) was first cryptocurrency ecosystem which came with a bunch of updated list of use cases. Eth was built with the concept of creating a platform to create apps which uses the concept of decentralization and also uses the Ethereum as a base platform.
Ethereum has created their own public blockchain for this purpose. Along with that Eth announced their blockchain was compatible to create smart contracts, a concept of signing an agreement and storing it on a blockchain.
Currently ETH stands at 2nd position in the crypto market with price of $2,761.73 ( 17-Mar-2022).
Ethereum was the first blockchain which supported the NFT concept and Opensea came as a medium/marketplace to buy/sell these NFT’s
Though Eth is 2nd Market leader but ETH has some drawbacks in form of Transaction fees/No of Transactions per second. Due to this many ETH competitors, Eth side chains came into existence to fix these issues. Currently ETH is working on their long awaiting project ETH 2.0 which will knock off all these issues and make ETH ecosystem more compatible, efficient and fast.
Solana is a blockchain which launched as competitor of ETH in terms of Transaction speed. ETH perform 16TPS where Solana perform 65000 TPS. Solana is very fast, efficient and light weight blockchain to build applications on the blockchain.
Solana has gained prominence and price also raised to a new ATH in 2021. Many applications have been built on Solana and a new ecosystem has been built on Solana Blockchain which provide services in various industries.
Polygon( MATIC) is considered itself as side chain of ETH. Polygon provides a scalable, sustainable, and interoperable infrastructure for connecting together various Ethereum-based solutions.
Polygon participates in government-led blockchain projects and supports over 800,000 unique users, 76Mn transactions & 400+ apps, including Aave & EasyFi.
Polygon is used as a platform to create Decentralized Apps, DAO, NFT minting and other applications. It also used to build light weight smart contracts, Interoperability infrastructure between ETH-based applications and services.
Avalanche(AVAX) is another blockchain which backed by AVA labs serves as an ecosystem to create application on the AVAX blockchain.
Avax is part of Top 10 Blockchains in Global crypto market. It also provides ability to build smart contracts.
AVAX also allows users to customize their blockchain to create sidechains and use the blockchain as per their requirement.
Cardano is a light weight blockchain mainly used for creating Smart contracts. From the initial start, its offers around 70% of their currency to validators on the network. Business and Fin Inst’s can create smart contracts on the blockchain.
Recently Cardano also created a marketplace for NFT minting and Virtual world like Decentraland.
NEAR Protocol, NEAR is a decentralized application platform that is designed to create the applications which help the future web and their economy. Near focuses mainly on the applications which helps to connect with Web3, Decentralized environment like Wallets etc.
On the NEAR platform, developers can host serverless applications and smart contracts with easy access to open finance related networks
Stable coins are the type of coins which are backed by Fiat currencies like US dollar, Euro to buy/sell other crypto currencies.
Tether is one of the first stable coins that has gained a lot of popularity recently. Tether is backed by the value of US dollar and considered as most used stable coin
Cryptocurrencies are often known for their extreme volatile behavior that leads to huge profits or losses for investors. This leads to Panic buying and selling.
Tether describes itself as “A blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.”
USDC is a fully collateralized US dollar stable coin. USDC is the bridge between dollars and trading on cryptocurrency exchanges. The technology behind CENTRE makes it possible to exchange value between people, businesses and financial institutions just like email between mail services and texts between SMS providers. We believe by removing artificial economic borders, we can create a more inclusive global economy.
Binance USD (BUSD) is a 1:1 USD-backed stable coin issued by Binance (in partnership with Paxos), Approved and regulated by the New York State Department of Financial Services (NYDFS), The BUSD Monthly Audit Report can be viewed from the official website.
That’s all for this article. We will cover some more categories in Next part.
Thanks for reading this 😊