Understanding the top 5 cryptocurrencies and their importance
Posted on: 04 Oct, 2021
When bitcoin was first launched in the year 2009, there were
no other technologies like it. It was the top tech in the world of digital
currency. But within two years, people slowly understood the value crypto has
on the future and started launching new crypto projects on their own.
In 2021 there are over 8 thousand cryptocurrencies. But not all hold the same value or potential as the top dogs in this market. So, let us take a look at the top 5 crypto token and see what they are all about.
Regardless of specifics, no list of crypto can ever be complete without the mention of bitcoin. It is the oldest crypto coin on the market with a market cap of 21 million.
The main goal of bitcoin was to replace the central bank and rely on public ledger technology. All bitcoin transaction ever made has a digital record and needs verification from computers all around the world. This makes the whole transaction valid, private, and away from the hand of any governing body.
Another big crypto coin on the market is ETH or popularly known as Ethereum. But unlike bitcoin, ETH is established as a programmable blockchain. The main goal of Ethereum was not to create a currency to replace the traditional money but to create a network where users can publish and monetize their application through the ETH currency.
ETH is also behind the recent attraction of NFT like digital arts and collectibles.
Cardano was created by a team of engineers, crypto experts, and mathematicians. It was designed to be the most balanced and sustainable coins that the world of crypto has ever seen. This third-generation crypto does not require the high energy used for mining coins like Bitcoin or ETH. It relies on the proof of stake approach instead of PoW.
The Solana blockchain generates Sol. It made massive waves on the DeFi market. The goal of the Solana project is to elevate smart contract technology to a whole new level.
Smart contracts are programs that work like paper contracts but without any middlemen in the picture. It beats the disadvantages of BTC and ETH of having slow speed by introducing almost 400,000 per second. The Solana market is capped at 480 million coins. And the price of Solana is increasing each week due to its overall robustness and speed of transaction.
This may come off as a surprise, but the Binance coin is one of the top coins at this moment. Whether you are new to the world of crypto or a veteran, you have already heard of or used the Binance platform.
It is the biggest cryptocurrency exchange platform in the world. And they have made their own crypto token to be used as a medium within the exchange. At first, it was built on the Ethereum blockchain. But now it is on their own blockchain platform.