What is Cryptocurrency and its top 5 Currencies: Hello, Everyone Today I am going to share some interesting facts on What is Cryptocurrency and the Top 5 Cryptocurrency.
What is Cryptocurrency and its top 5 Currencies?
Table of Contents
Cryptocurrency Meaning
A cryptocurrency or crypto in short currency. It is a digital asset or valuable thing which is designed to work as a medium of exchange, wherein the people coin ownership records are stored in a ledger that exists in a form of a computerized database that is using strong cryptography to secure all transactions records, to control the creation of an additional coin, and to verify the transfer of coin ownership.
This kind of currency typically does not exist in the physical form like paper money and is typically not issued by any central authority. Cryptocurrencies typically use the way of decentralized control as opposed to the centralized digital currency and central banking systems. When a cryptocurrency is created before issued by a single issuer, it is generally considered as centralized. When to start with decentralized control, each cryptocurrency working through the distributed ledger technology, which is typically a blockchain, and also serves as a Public Financial Transaction Database.
Top 5 Currencies in Crypto Market
1. Bitcoin
Bitcoin was the first cryptocurrency that started in the whole decentralization movement. Without bitcoin, we would not be where we are in today’s world in currency. According to the cryptocurrency type Bitcoin, no user is a trusted one user and everything must be verified by the public agreement which is achieved by a mathematical process known as proof of work.
We are not getting into the working of proof of work, but just to say it a very resource-heavy and equally trustworthy and hard to break. It was really the first piece of technology that promised security over the internet. As of today’s time, the market capitalization of the world’s top digital currency is more than $125 billion, with a price per coin of more than $6547. If you want to learn more on cryptocurrency and some new trends in trading, check Ethereum token standard.
2. Ethereum
Ethereum is an open-source and public blockchain that is based on a distributed computing platform for building decentralized applications. So, earlier the creation of Ethereum, blockchain applications was designed to do a very limited set of operations. Bitcoin and other cryptocurrencies, for example, were developed exclusively to operating as computing digital currencies.
Vitalik Buterin, the mastermind behind the cryptocurrency Ethereum, started his project as a platform for the developers to write programs on the blockchain. This was brought about with the ongoing smart contracts which is basically a program that runs on the blockchain and can be giving ideas by the users of the network. So, basically, this allows the App developers to freely work on the blockchain without knowing its complicated parts by using a software program like Truffle. The cryptocurrency of Ethereum is called Ether and there are about 100 million of them are available in the market.
3. Ripple
It is a real-time gross settlement system, currency exchange, and Remittance network which is created by Ripple Labs a US-based technology company.
It is built upon a distributed open-source internet tools to communicate with each other and supports tokens that representing fiat currency, cryptocurrency, commodities, or other units of value like Frequent flier miles or mobile minutes. This method is easing out the process of cross-border payments with its negligible transaction fees and super-fast transaction in times. It is a method of eliminating faulty participators by bringing about an agreement between a group of peoples through a majority election.
4. Bitcoin Cash
Bitcoins are having popularity like increasing higher level caused its own set of problems in terms of System. The number of transactions is increased by leaps and bounds, the rate at which the blocks are filled up was increasing as well. More of the time, people actually had to wait until new blocks were created so that their transactions would go through.
This created an amount of work of transactions, in fact, the only way to get the transactions prioritized is to pay a high transaction fee to attract and motivate the miners to prioritize the transactions.
To solve the problem Bitcoin currency went through a hard fork and Bitcoin Cash currency was born. This was done with the steps of segregated witness.
5. EOS
EOS is a blockchain platform for the development of decentralized applications. similar to the currency of Ethereum in function. It makes the app development a cool wind by providing an operating system like the set of functions and libraries for the developers.
EOS brings together the best features and promises of the different smart contract technologies out of there for example the security of Bitcoin currency. While maintaining the computing support of currency Ethereum. Which is one simple to use, large-scaled app platform for the everyday user. It is also providing a complete operating system for decentralized applications that is focused on the web with services like User authentication, Cloud storage, and Server hosting.
So, these are the above-mentioned 5 types of Cryptocurrencies and their functions. Please go through this article and enjoy reading it.
If any Queries, or Questions is persisting then, please feel free to comment on your viewpoints.
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