Bitcoin And Ethereum Are Not The Only Cryptocurrencies

You might have heard about cryptocurrency. The field of cryptocurrencies keeps expanding, and the next great digital token might be released tomorrow. Despite Bitcoin’s reputation as a pioneer cryptocurrency, analysts adopt various approaches to evaluate tokens other than BTC. For instance, it is common for analysts to attribute more importance to ranking coins relative to one another in terms of market capitalization.

  • Polkadot

Polkadot (DOT) is a unique Proof-of-Stake cryptocurrency that delivers interoperability among other blockchains. With its protocol, approved and permissionless blockchains and oracles can connect systems under one roof. One of the fundamental components of Polkadot is its relay chain that enables the interoperability of varying networks. It also provides Parachains or parallel blockchains with native tokens for specific-use cases.

Polkadot differs from Ethereum in that rather than creating just a decentralized crypto Indian investment app on Polkadot. Developers can create their blockchain using Polkadot chain security. Developers can create new blockchains with Ethereum, but they must also create their security measures, leaving new and smaller projects vulnerable to attacks; the more comprehensive a blockchain is, the more secure it is. This concept is called shared security by Polkadot.

Gavin Wood, a member of the Ethereum core team who disagreed over the project’s future, created Polkadot.

  • Bitcoin Cash

Bitcoin Cash (BCH) holds a prestigious position in the history of coins since it was one of the original Bitcoin’s earliest and most successful hard forks. The crypto exchange world experiences forks due to debates and arguments between developers and miners. Since digital currencies are decentralized, wholesale changes to the code underlying each token or coin must be agreed upon by a consensus; each cryptocurrency determines this process.

When different factions don’t agree, the digital currency sometimes gets split. However, the original chain remains true to its original code, and the new chain begins life as a new update of the previous coin, complete with changes to its code.

It came into being in August 2017 after one of these splits. The Bitcoin network limits block sizes: one megabyte (MB). BCH increases the block size from 1-8 MB, with the idea that larger blocks can hold more transactions within them, increasing the transaction speed. It also makes other changes, such as removing the Segregated Witness protocol that can impact block space.

  • Stellar

Stellar (XLM) is an open-source blockchain that connects large financial institutions to provide enterprise solutions. Transactions between cryptocurrency app firms and banks that used to take several days, involve several intermediaries, and cost a lot of money are now done nearly instantly without intermediaries and cost little to nothing.

Despite Stellar’s positioning as an enterprise blockchain for institutional transactions, it is still an open blockchain available to anyone. Additionally, the system supports cross-border transactions among any currency. Stellar’s native currency is Lumens (XLM). To use the network and transact, users must hold Lumens.

Jed McCaleb founded Stellar, a founder of Ripple Labs and developer of the Ripple protocol. After leaving his role with Ripple, McCaleb eventually co-founded the Stellar Development Foundation.

What is your reaction?

In Love
Not Sure

You may also like

Comments are closed.

More in:Business