10 of the most important digital currencies (other than Bitcoin)
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Bitcoin is the undisputed most powerful and most important digital currency, as it launched a new trend towards currencies built on a decentralized network called “Blockchain”. The number of digital currencies currently in existence exceeds 8,000 currencies, and their number is still increasing. This article will cover 10 of the most popular cryptocurrencies among supporters and investors.
Cryptocurrency is virtual or digital money in the form of tokens. The majority of cryptocurrencies are still completely intangible except for a few that entered the physical world with credit cards or other projects. The term “crypto” refers to the complex cryptography that allows the creation and transaction of digital currencies and their transactions across decentralized systems.
Altcoins are currencies that are modeled after Bitcoin, which often try to present themselves as modified or improved versions of Bitcoin. These coins may have some impressive features that Bitcoin does not have, but the latter still leads the way in security.
Top 10 digital currencies 2023
1- Ethereum (ETH)
The first alternative to Bitcoin on our list is Ethereum (ETH) which is a decentralized software platform that allows the creation and operation of smart contracts and decentralized applications without any downtime, fraud, control or interference from a third party. The goal of Ethereum is to create a decentralized set of financial products that can be freely accessed by anyone in the world regardless of their nationality, race or belief.
These applications run on ether, which is the platform’s cryptographic token. Ether (ETH) is the go-to on the Ethereum platform and is of interest to developers looking to develop and run applications within Ethereum, and investors looking to purchase other cryptocurrencies with Ether. Ether was launched in 2015, and it is currently the second largest cryptocurrency by market capitalization after Bitcoin.
Ethereum switched its consensus algorithm in December 2020, from Proof of Work (PoW) to Proof of Stake (PoS). The move aims to allow the Ethereum network to run itself with less power and faster speed. PoS allows participants to “share” their ether in the network to help secure the network and process the transactions that occur.
2- Litecoin (LTC)
Litecoin (LTC) was launched in 2011 and was among the first cryptocurrencies to follow in the footsteps of Bitcoin. Litecoin is based on an open source global payment network that is not controlled by any central authority and can be decrypted with the help of consumer-level CPUs. Although Litecoin is similar to Bitcoin in many ways, it has a faster block generation rate, and thus saves a lot of time when confirming a transaction.
Unlike developers who prefer Ethereum (ETH), Litecoin is very popular with merchants. Litecoin has a market cap of $10 billion and the value of each token is measured at around $148, making it the 18th largest cryptocurrency in the world.
3- Cardano (ADA)
Cardano (ADA) was created by engineers, mathematicians, and cryptographers using a research-based approach who created the blockchain based on over 120 research papers on blockchain technology.
Cardano stands out among its point-of-sale peers and is also competing with major cryptocurrencies, as it has been called the “Ethereum killer”. But these are only the early stages of the coin, as although it predates Ethereum to the PoS consensus model, it still has a long way to go in terms of DeFi applications.
Cardano aims to be the global financial operating system by creating DeFi products, as well as providing solutions for blockchain interoperability, voter fraud, legal contract tracking, etc. Cardano has the sixth largest market capitalization at $42 billion, and one ADA is trading at around $1.25.
4- Polkadot (DOT)
Polkadot (DOT) aims to provide interoperability between other blockchains. Its protocol is designed to connect authorized and unauthorized blockchains, to allow systems to work together under one roof. Polkadot’s core component is the relay chain that enables interoperability of different networks.
Polkadot differs from Ethereum in that it allows developers to create their own blockchain while using the security provided by the Polkadot Chain. With Ethereum, developers can create new blockchains but they need to create their own security measures, which can leave new and small projects open to attack. The larger the blockchain, the higher the level of security. At Polkadot this concept is known as Shared Security.
Polkadot was created by Gavin Wood, a co-founder of the Ethereum project. Polkadot has a market capitalization of around $25 billion, and DOT is trading for $25.17.
5- Bitcoin Cash (BCH)
Bitcoin Cash (BCH) holds an important place in the history of altcoins, as it is one of the oldest and most successful hard forks of the original Bitcoin. Hard forks occur as a result of discussions between developers and miners. Due to the decentralized nature of digital currencies, bulk changes must be made to the underlying code of the token or currency.
When the different factions do not agree, sometimes the digital currency is forked with the original chain remaining identical to its original symbol, and the new chain starting life as a new version of the previous currency.
Bitcoin Cash started life in August 2017 as a result of one of these forks and it is increasing the block size from one megabyte to eight megabytes in order to be able to hold more transactions within it. Bitcoin Cash has a market cap of $8.2 billion and each token is worth $436.19.
6- Stellar (XLM)
Stellar (XLM) is a blockchain network that enables massive transactions between banks and investment firms that would normally take several days, involve a number of intermediaries, and cost a great deal of money, instantly and without intermediaries and at very little cost.
Stellar has marketed itself as intended for institutional transactions, but in reality it is still open for anyone to use. Stellar’s native currency is Lumens (XLM), and the network requires users to hold Lumens in order to be able to perform transactions on the network.
Stellar Jed McCaleb left his role with Ripple as a founding member and protocol developer to co-found the Stellar Development Foundation. Stellar Lumens has a market capitalization of $6 billion and the symbol b is valued at $0.26.
7- Dogecoin (DOGE)
Dogecoin (DOGE) caused a stir in 2021 as its price skyrocketed. This currency is accepted as a form of payment by some major companies including the Dallas Mavericks, Kronos, and SpaceX.
Dogecoin was created by two software engineers in 2013 as a joke, but it has a market capitalization of $22.8 billion and DOGE is valued at around $0.17, making it the second largest cryptocurrency.
8- Binance (BNB)
Binance Coin (BNB) acts as a payment method for fees associated with trading on the Binance Exchange, and is the third largest cryptocurrency by market cap.
Binance Exchange was founded by Changpeng Zhao and is one of the most used exchanges in the world based on trading volume. Before launching its mainnet, the coin was initially an ERC-20 token running on the Ethereum blockchain. The Binance Coin market cap is $91.5 billion, and one BNB coin is measured at $545.24.
9- Tether (USDT)
Tether aims to peg its market value to a currency or other external reference point to reduce volatility. Given the volatility of the industry, stablecoins like Tether are trying to mitigate price fluctuations to attract more users. The price of Tether is directly linked to the price of the US dollar, and the system allows users to make transfers from other cryptocurrencies to US dollars with great ease.
Launched in 2014, Tether is the fourth largest cryptocurrency by market capitalization of $73.4 billion and value per token of $1.26.
10- Monero (XMR)
Monero (XMR) is a secure, private and untraceable currency. This open source digital currency was launched in April 2014 and quickly gained a lot of interest from the interested segment of people. The development of this currency is entirely dependent on donations.
Monero enables complete privacy by using a special technology called “ring signature” that shows a set of cryptographic signatures from which the real person cannot be isolated. Monero has come under fire for its exceptional security mechanisms, which have been linked to criminal operations around the world.
The company has a market capitalization of $3.2 Billion USD and the value of each token is measured at $181.30 USD.
Common questions about the most important digital currencies
Why are digital currencies important? As decentralized platforms, blockchain-based digital currencies allow individuals to participate in peer-to-peer financial transactions or enter into contracts. In either case, there is no need for a third intermediary such as a bank, monetary authority, court, or judge, which democratizes finance, which is the main goal behind the creation of digital currencies.
Why are there so many digital currencies? The majority of digital currencies today are derived in one form or another from Bitcoin, which uses open source code and censorship-resistant architecture. This means that anyone can copy and modify the code and create their own new digital currency.
What are some of the other major cryptocurrencies? Many cryptocurrencies have gained wide importance such as Dogecoin which was a joke that came to fame when it was promoted by Elon Musk, who is the CEO of Tesla. Apart from Dogecoin and the rest of the currencies mentioned in the list of the most important cryptocurrencies, there are many other currencies such as ld and Bitcoin SV that have made their way to success in one way or another.
Why is Bitcoin still the most important digital currency? Despite the emergence of thousands of competitors, Bitcoin will remain the original and dominant digital currency in terms of use and economic value. Each coin (BTC) is worth around $47,000 as of December 2021, with a market capitalization of over $886 billion.
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