Cryptocurrency is a digital or virtual currency. that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. it uses decentralized control as opposed to centralized digital currency and central banking systems based on blockchain technology.
The first blockchain-based cryptocurrency was Bitcoin, which still remains the most popular and most valuable. Today, there are thousands of alternate cryptocurrencies with various functions or specifications.
Types of Cryptocurrency
Bitcoin(BTC) is a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer Bitcoin network without the need for intermediaries. its high electricity consumption, price volatility, thefts from exchanges, and the possibility that bitcoin is an economic bubble. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.
Litecoin (LTC) is a peer-to-peer cryptocurrency and open-source software project released under the MIT/X11 license. Creation and transfer of coins are based on an open source cryptographic protocol and is not managed by any central authority. Litecoin was an early bitcoin spinoff or altcoin.
Ethereum is an open-source, public, blockchain-based distributed computing platform and operating system featuring smart contract functionality. It supports a modified version of the Nakamoto consensus via transaction-based state transitions. Ether is backed by a blockchain, much like bitcoin, but the technology is slightly different and aimed at a specific use case: smart contracts.
Ripple (XRP) is a real-time gross settlement system, currency exchange, and remittance network. it’s a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. Ripple was released in 2012. The coin for the cryptocurrency is premised and labeled XRP.
Bitcoin Cash is a cryptocurrency a group of developers wanting to increase bitcoin’s block size limit prepared a code change. The change called a hard fork. the bitcoin ledger called the blockchain and it split in two. the bitcoin ledger called the blockchain and the cryptocurrency split in two. At the time of the fork, anyone owning bitcoin was also in possession of the same number of Bitcoin Cash units.
Ethereum Classic(ETC) is an open-source, public, blockchain-based distributed computing platform featuring smart contract functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine, which can execute scripts using an international network of public nodes.it provides a value token, or “altcoin”, called “classic ether” which is used to pay users for products and services, and as a transaction fee when using decentralized apps and smart contracts.
Cardano is part of Cardano’s settlement layer. Other applications outlined on its website are identity management, a credit system, and Daedalus, a universal cryptocurrency wallet with automated crypto trading facility and crypto to fiat conversion capabilities. it is a distributed computing platform that runs the blockchain for the Ada cryptocurrency.