In the future, with the development of Blockchain technology in recent years and the search for economic recovery by companies, it has generated that cryptocurrencies are seen as a real option to a centralized financial platform and as a good value for the coming years.
They are a virtual currency created to function as an exchange system. The coins fulfill the same function as the money that is used on a day-to-day basis, because they serve to cancel the products or services. But, since money is virtual, it can be hackable and that is where cryptography comes into play. Cryptography is the science that is responsible for summarizing a message so that it can only be read by the appropriate recipient. So when sending a cryptocurrency to an individual, you have to make sure that through the cryptography the currency cannot be intercepted and stolen.
Characteristics Of Cryptocurrencies
Its important characteristics are:
• A cryptocurrency, is an alternative virtual asset focused on a network that is distributed in a large number of computers. In this way, its decentralization occurs and it does not depend on a large central computer. It is not a physical currency
• Its creation focuses on being a unique cryptography.
• They are independent
How Many Cryptocurrencies Are There?
There are currently over 10,000 digital currencies globally and counting. In a short time, new ones appear, which are created through a process called ICO. Most cryptocurrencies use blockchain technology, but it is not the only one.
With the launch of new cryptocurrencies, over time new platforms have appeared to send, receive and acquire various types of cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
Largest Coins By Market Capitalization
•Bitcoin, Ethereum, Cardano, Tether, Binance Coin
It is the pioneer coin in the cryptocurrency market. In the year 2008, it was created by many people under the name of Satoshi Nakamoto. Although he has had ups and downs and it is difficult to know when he will go up or down. His Bitcoin network is relatively simple but secure.
It’s not a currency, it’s a disseminated computing system. It can be represented as a big computer that is distributed in combined computers at the same time and works simultaneously. The computerized network allows to make applications in this distributed network and the operations are fed with the currency of the network, the ether (ETH). A second generation blockchain is created, which means that it has been built based on the Bitcoin operating system but with great differences.
It was specifically created to build the enforced bridge between government currencies and cryptocurrencies and provide stability, transparency, and minimal transaction fees for users. Tether is tied to the US dollar and maintains a one-to-one peg in terms of value.
• The value is stable. You can send money in a Tether wallet to another, there are no transaction costs.
• It is accepted by the various buying and selling platforms.
Binance Coin (Bnb)
It is created to support transactions within the Binance system itself. Here, the developers of the Exchange try to increase the importance of their token through projects linked to the Blockchain that can be financed by the users themselves with Binance coins.
The essential purpose is to connect financial institutions, payment providers and digital asset exchanges, enabling faster and more cost-effective global payments.
Possibly you have seen in hundreds of media and big celebrities promoting this cryptocurrency that initially originated as a simple meme. The coin was created as an internet joke that was focused on a meme. The operation of Doge, focuses on Litecoin and works in a similar way to other cryptocurrencies in which the miners do mathematical tests to be able to approve a block of the chain.
Solana has managed to establish a high-performance network, fast and capable of doing a high level of operations per unit of time thanks to a unique system of order of transactions.