5 Most Popular Cryptocurrencies
What comes to your mind on hearing the terms Bitcoin, popular cryptocurrencies, and Blockchain? You must have heard the words but supposing you haven’t, read the article to the end. Cryptocurrency is a decentralized virtual currency that exists in an intangible form and is not issued or regulated by a single authority.
Transactions in cryptocurrencies are executed over a Blockchain network using cryptography technology that securely keeps user information. Bitcoin was the first and the most popular cryptocurrency invented in 2009 to facilitate transactions via a blockchain network.
The number of cryptocurrencies has been on the rise since the launch of Bitcoin, with over 5,000 cryptocurrencies in existence. Here is a list of some of the most popular cryptocurrencies starting with Bitcoin.
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Bitcoin, abbreviated as BTC, was invented in January 2009 following the initial inventor of blockchain technology, Satoshi Nakamoto (presumed as developer/founder of Bitcoin). Bitcoin aimed to cut the cost of transactions in mainstream payment and bring double payment to an end. Bitcoin transactions are verified by the users using massive amounts of computing and electrical power in Bitcoin mining. Bitcoin is not a legal tender, but its popularity led to the birth of thousands of other cryptocurrencies.
Six years after the invention of Bitcoin, Ethereum was launched by programmer Vitalik Buterin to serve as an alternative to Bitcoin. Ethereum aimed to develop a cryptocurrency that allows smart contracting and the development of safe and reliable decentralized applications. Ether is the cryptocurrency that runs the Ethereum platform ranks second in terms of market capitalization. Decentralized applications Ethereum networks use smart-contracting capabilities to automate the execution of processes.
XRP is a common cryptocurrency running on the Ripple blockchain helpful in the global exchange of fiat currency. Banks have adopted Ripple because of its practical, cost-effective cross-border money transfer capability. Unlike Bitcoin, Ripple is not mined and ranks third-largest cryptocurrency.
Litecoin was launched in 2011 by an MIT graduate, Charlie Lee using the technology used by Bitcoin. Litecoin aimed at improving on the weaknesses of Bitcoin. It is a popular coin amongst investors, and despite being similar to Bitcoin, it generates blocks much faster. Litecoin is often branded as the faster version of Bitcoin because new blocks are created every two and a half minutes, while Bitcoin has a 10-minutes block interval.
ADA cryptocurrency runs on a Cardano decentralized network built after extensive research by a team of engineers, mathematicians, and cryptographers. The cryptocurrency is secured through a version of a proof-of-stake protocol named Ouroboros. Ouroboros run on permissioned and permission-less blockchains.
Crypto space is awash with cryptocurrencies, each having functionalities that differ from the others in various ways. The rise in the number of cryptocurrencies is in line with the technology they are built on, Blockchain, which gives room for the development of new cryptocurrencies.