Blockchain Technology:
The growth of Blockchainx technology in recent years and the search for financial recovery by companies has made cryptocurrencies present themselves as a real alternative to a centralized financial system and as a good refuge value for the years to come. Do you want to know what the main cryptocurrencies are and how to invest in them? Enjoy this post!
What are cryptocurrencies or cryptocurrencies?
Cryptography is the science that is responsible for encrypting a message so that it can only be read by the appropriate recipient.
Characteristics of cryptocurrencies
This is what makes it decentralized (it does not depend on a large central computer).
It is not a physical currency (although it can be stored on devices such as hard drives or external memories) .
Cryptocurrency Features
Cryptocurrencies are systems that allow secure online payments that are denominated in terms of virtual " tokens ",Crypto Token Migration which are represented by internal accounting entries of the system.
“Crypto” refers to the various encryption algorithms and cryptographic techniques that protect these entries, such as elliptic curve encryption, public/private key pairs, and hash functions.
The ranking of the 10 most famous cryptocurrencies:
1. Bitcoin (BTC)
Without a doubt, this currency has positioned itself as a leader in the digital market . However, it has gone through great ups and downs and it is difficult to know when it will go up or down. Despite the fact that many managers consider that Bitcoin is the new digital gold , it continues to have large price variations and very high volatilities.
The operation of the Bitcoin network is relatively simple (hence much of its virtue) but amazingly secure. We leave you here an outline of how Bitcoin mining works and what parties are involved in a transaction:
2. Ethereum (ETH)
We could represent it as a large computer that is divided into multiple computers at the same time and works simultaneously. This computing network allows the execution of applications in this distributed network and the operations are fed with the currency of the network, the ether (ETH).
Ethereum is considered a 2nd generation blockchain, which means that it has been built based on the Bitcoin operating system but with great differences.
Ethereum currently presents a scalability problem that makes the transactions that are executed in its network increase in cost. To address this issue, Ethereum is working on Ethereum 2.0, a set of interconnected updates that will make it a more secure and scalable network.
However, Ethereum already has competitors, the well-known 3rd generation Blockchains or “Ethereum killers” such as Cardano (ADA) or Solana (SOL) that we will now comment on in the post.
3. Cardano (ADA)
Cardano distinguishes itself by using mathematical principles in its consensus mechanism and a unique multi-layer architecture, which makes it stand out from other competing blockchains.
The Cardano founding team consists of Jeremy Wood and Charles Hoskinson . In addition, it differs in that it seeks to solve problems that other blockchains present regarding security, scalability, and decentralization.
4. Tether (USDT)
Tether is a stable currency or stablecoin , that is, all cryptocurrencies of this type in circulation are backed by an equivalent amount of traditional fiduciary currencies, such as the dollar, the euro or the Japanese yen.
Tether was specifically designed to build the necessary bridge between government currencies and cryptocurrencies and offer users stability, transparency and minimal transaction fees.
In the case of Tether, it is pegged to the US dollar and maintains a 1:1 ratio in terms of value. That is, 1 Tether is equal to 1 Dollar.
5. Binance Coin (BNB)
BNB is an ERC20 Token that was launched in July 2017 as an ICO with the aim of financing the birth and growth of Binance. Once this ICO stabilized, these tokens were transferred to Binance's own blockchain known as Binance Chain. Because the issuance of BNB's is not limited, there is a mechanism to prevent its inflation known as BNB burning, which reduces the supply until there are only 100 million units of this token left.
6. Ripple (XRP)
Ripple (XRP) for many experts is the successor to Bitcoin since this digital currency was created by the former developers of Bitcoin with the aim of improving performance.
Ripple's main goal is to connect banks, payment providers and digital asset exchanges, enabling faster and more profitable global payments .
In other words, it is a confidential system where the sender and receiver are the only ones who have the information and the code that decrypts it.
7. Dogecoin (DOGE)
Dogecoin is one of the most popular cryptocurrencies or cryptocurrencies of all time. block of the chain.
8. USD Coin (USDC)
USD Coin is a response to the need to have stablecoins as bridges between the world of government money (EUR, USD, MXN,…) and the world of cryptocurrencies Tether had to ensure that for each issued token (USDT) there was 1 USD in its safe to support it, but successive audits showed that they did not have that support . They also presented accessibility problems since in order to access the purchase of those tokens you had to meet capital criteria that many would characterize as abusive.
9. Polkadot (DOT)
The founder of the project, Gavin Wood, was part of the Ethereum development team, being at the same decision-making level as the original founder of Ethereum, Vitalik Buterin. Wood, motivated to create a project that overcomes some of the weaknesses and inconsistencies of the Ethereum ecosystem (scalability and interoperability among many other things), started the Polkadot project in October 2016.
Unlike other platforms, Polkadot is among the newest and introduces a series of new technical features to achieve its ambitious goal of encouraging the spread of cryptocurrencies.
10. Solana (SUN)
One of the great problems that are presented by the Blockchain ecosystem is its own scalability.
What sets Solana apart is its trade verification protocol known as Proof of History .
