Technology is growing by leaps and bounds with every day that passes. The terms eCommerce, blockchain, and Software as a Service (SaaS) are just the tip of the iceberg. Besides the new products and services on the market today, we also have different payment systems.
This is where cryptocurrencies come into play.
Engineered in 2009, cryptocurrencies are now becoming more prominent than ever before. If cryptocurrencies are expected to be used more widely in the future, it makes sense to get a grip on some of the fundamentals.
What are Cryptocurrencies?
A cryptocurrency is a virtual currency, a digital asset that you can use to purchase goods and services. It runs on blockchain technology, which is a decentralized technology that runs on multiple computers.
What are the Characteristics of Cryptocurrencies?
The following features characterize cryptocurrencies:
Cryptocurrencies are decentralized, meaning it is independent of any single entity. Traditional currencies like the US Dollar, Euro, and so on have governing bodies.
However, with cryptocurrencies, this is not the case. Since it is independent of any single point of control, it is also mostly immune to security threats.
Crypto transactions are irreversible. With a cryptocurrency like Bitcoin (BTC), you will have to confirm the trade to make it happen. However, once you confirm, there is no going back.
With traditional currencies, you can go to the bank to lodge a complaint. However, with cryptocurrencies, absolutely no one can influence transactions once confirmation has been made.
Most people are terrified to reveal their personal details and identities online, and understandably so. With cryptocurrencies, you do not need to do this. All you need to do is sign up and provide an address of up to 30 characters, and you are good to go.
You do not need permission from a single entity or a group of governing bodies to start transactions with cryptocurrencies. In other words, there are no gatekeepers. All you have to do is download and install the free software and conduct transactions.
What are the Most Popular Cryptocurrencies Today?
This is one of those topics that makes waves online regularly, especially today, where everybody is talking about their crypto investments. There’s a wealth of rich content out there that you can use to boost your awareness. Prominent crypto influencers often add custom graphics to their videos, using a random shape generator – these help to turn abstract crypto concepts into easy facts.
Here are a few of the most popular cryptocurrencies today:
As you may have expected, Bitcoin sits at the top as the most popular cryptocurrency on the planet. Created in 2009, it is now valued at $33,797.
Ethereum (ETH) is widely regarded as the second most popular cryptocurrency. Vitalik Buterin created it two years after the inception of Bitcoin. Like Bitcoin, it is a means of payment for goods and services in many countries.
Litecoin (LTC) was created in 2011 by Charlie Lee. It wasn’t created to replace Bitcoin but to serve as the silver to Bitcoin’s gold. Its transaction time is much shorter than that of Bitcoin.