The world of cryptocurrencies has been installed in our lives relatively recently, but it is increasingly important in the tasks of individuals and companies. Cryptocurrencies are presented today as a real alternative to a centralized financial system and as a good refuge value for years to come. Throughout today’s special, we are going to review what the five most valuable.
Surely, Bitcoin is the most popular cryptocurrency that exists in the market. In fact, its capitalization covers 50%. The success of this digital currency is that is the pioneer in the sector. In 2008 it was created by several people under the name of Satoshi Nakamoto. Of course, at its launch it did not have the value that it has now and most could not even think that it would reach this data. Currently, its value is around $38,000.
However, the Bitcoin network can barely process five transactions per second, compared to more than 20,000 in the Visa network. «The cost of a bitcoin transaction can fluctuate significantly and is typically much higher than a debit card.”explains Peter Berezin, chief strategist at BCA Research, in statements to El Economista.
The slowness of the Bitcoin network is inherent in how it was designed. Due to their decentralized nature, blockchains must rely on elaborate procedures to prevent bad actors from taking control. Bitcoin and other popular cryptocurrencies like Doge use the so-called algorithm proof of work or ‘proof of work’, a tedious system that has been superseded by new mechanisms used by other cryptocurrencies. As crypto is always a changing landscape, it’s best to keep up on those new mechanisms by reading the latest cryptocurrency news as regularly as possible.
Ether
The second digital currency by market capitalization is also the ‘token’ that enables many of the applications that are opening up new possibilities for crypto-based financial transactions to run. Its ‘blockchain’, Ethereum, is the most widely used in the world to develop these applications aimed at promoting decentralized finance. Ether is facing increasing regulation that will be consolidated in the future.
Ether has a dual character: it is both a payment token and a utility token. On the one hand, it is the cryptocurrency with which the computational services of this network and the verification fees of the transactions that are executed in it are paid. (Xanax Online) On the other, it is also the ‘gasoline’ that allows decentralized applications to run, crypto-based applications with which users carry out direct transactions and agreements without intermediary entities, and ‘smart contracts’, intelligent contracts that are executed automatically and guarantee that these transactions and agreements are fast, safe and efficient, according to BBVA.
Cardano
Cardano is the representation of the so-called third generation of the blockchain which tries to solve the scalability problem of second generation blockchains such as Ethereum. Over the last few months, the coin has become one of the fastest growing assets in the entire cryptocurrency industry, multiplying its value by more than 50 times in 2021.
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 founding team consists of Jeremy Wood and Charles Hoskinson. The latter was part of the founding team of Ethereum, but separated from the team as a result of differences with the rest of the team. Cardano was successfully launched in September 2017 and its native token is ADA, as highlighted by IEBS School.
Cardano is distinguished from the rest of the blockchains (with their respective tokens) in that it had a much more premeditated and scientifically rigorous origin. In addition, it differs in that it seeks to solve problems that other blockchains present regarding the security, scalability and decentralization.
Rippl
Ripple (XRP) for many experts is the successor of Bitcoin since this digital currency was created by the former Bitcoin developers 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.
Like Bitcoin, Ripple is a totally secure and encrypted system whose transaction information is public but payment information is not. 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.
Dogecoin
Dogecoin is one of the most popular cryptocurrencies or cryptocurrencies of all time. This currency was born as an internet joke that was based on a meme. Doge’s meme it is simply an image of a shiba inu, a breed of dog, which is usually accompanied by different grammatically erroneous phrases that usually make fun of some situation.
After the widespread success of the meme, Billy Markus decided to create an alternative currency to Bitcoin based on Litecoin because he knew that Bitcoin at that time was closely related to the remuneration of criminal activities on the Internet.
Doge’s operation is based on Litecoin and works in a similar way to other cryptocurrencies in which miners have to carry out mathematical tests to be able to approve a block of the chain.
Its success is due to certain influencers who have artificially raised its price through repeated mention on social networks, claiming that it is the people’s currency.
