Majorly a cryptocurrency is a digital or virtual money that generally takes the form of coins or tokens. Though some of the cryptocurrencies have ventured into the real world with credit cards or different projects, the vast majority of these cryptocurrencies remain completely hypothetical.
The word “crypto” in cryptocurrencies is attributed to complex cryptography which enables the processing and creation of digital currencies and their transactions across decentralized systems.
These cryptocurrencies are generally developed as code by teams who develop mechanisms for issuance, (which is done largely, not always, through a process called “mining”) and other controls.
Basically, cryptocurrencies are mostly always designed to be free from government control and manipulation, but as cryptocurrencies have grown more attractive, this foundational viewpoint of the industry has come under fire.
Google, Apple, Facebook, Tesla, PayPal, Deutsche Bank, and Samsung are some of the well-known companies that have recently incorporated cryptocurrencies in their long-term strategic plans.
There has been a sudden excitement in the crypto-industry about altcoins since Bitcoin’s price has towered, and people are further interested in seeing which tokens can win a spot this year.
Top 5 Blockchain-Based Cryptocurrencies which are Leading the World
Bitcoin – BTC
Created in 2008, Bitcoin (BTC) is a cryptocurrency that is believed to be founded by an anonymous individual or group of people who is/are known by the name Satoshi Nakamoto.
Being a decentralized digital currency, Bitcoin can be sent from user to user on the peer-to-peer bitcoin network without using the intermediaries. Bitcoin has no single administrator or central bank.
To verify transactions, network nodes use cryptography, which is then registered in a public distributed ledger known as a Blockchain. Developed as a means of promoting decentralized transactions, Bitcoin is the largest cryptocurrency by market capitalization and the most popular cryptocurrency in the world.
Ethereum – ETH
Known as the decentralized software platform, Ethereum allows Decentralized Applications (DApps) and Smart Contracts to be designed and run without the need for third-party intervention, downtime, control, or theft.
Ethereum is a non-hierarchical network of computers (nodes), a permissionless currency that creates and achieves agreement on an ever-growing array of “blocks,” or groups of transactions known as the Blockchain.
The platform’s original cryptocurrency is known as Ether (ETH). Moreover, Ethereum is the second-largest cryptocurrency after Bitcoin in terms of market capitalization.
Ethereum was proposed by Vitalik Buterin, a programmer, in 2013. Crowdfunded in 2014, the Ethereum network went live in July 2015 with an original supply of 72 million coins. This cryptocurrency is used for decentralized finance, the exchange and production of non-fungible tokens (NFTs), and several Initial Coin Offerings (ICOs). The coin market capitalization is at $261.9 billion on May 23.
Tether – USDT
Previously known as Realcoin, Tether (USTD) was launched in 2014 and it is also one of the very first cryptocurrencies to be pegged to the US dollar. The crypto coins of this Blockchain-Based cryptocurrency are backed by an equivalent sum of conventional fiat currencies kept in a specified bank account, such as the euro, dollar, or Japanese yen.
As opposed to the huge variations seen in the prices of other common cryptocurrencies including Bitcoin and Ethereum, the Tether is a stablecoin, a sort of cryptocurrency that intends to hold cryptocurrency prices constant.
Tether stands as the third-largest cryptocurrency by market capitalization with a total market capitalization of $59.5 billion (As of May 23rd) and a per-token value of $1.00.
Cardano – ADA
Cardano was launched as a cryptocurrency network and open source project with the objective of building a public Blockchain platform for smart contracts. The internal cryptocurrency of Cardano is ADA.
Released it in 2017, Charles Hoskinson, a co-founder of BitShares and Ethereum, started developing the platform in 2015. One of Ethereum cryptocurrency’s five original founding members, Charles Hoskinson was a co-founder of the project Cardona.
Hoskinson left Ethereum’s course after some disagreements and afterward assisted in the development of Cardano. With a market capitalization of $46.4 billion, the non-profit digital currency ADA was trading at $1.48 (as of May 23rd).
With an aim to provide Blockchain interoperability, Polkadot (DOT) is a one-of-a-kind proof-of-stake cryptocurrency. The protocol of Polkadot cryptocurrency links permissionless and permissioned blockchains, as well as oracles, enabling systems to interact below a single roof.
Polkadot cryptocurrency was created by Thiel Fellow Robert Habermeier, Peter Czaban, and Gavin Wood who is also a co-founder of the Ethereum Project and was previously its Chief Technology Officer.
Polkadot has a market capitalization of $20.4 billion, and one DOT was trading for $22.19 as of May 2021.
Polkadot facilitates an internet via the Polkadot relay chain where autonomous blockchain can share information and transactions in a doubtful manner. The objective of Polkadot is to make connecting and creating decentralized utilities, apps, and organizations easier.