This is faiz makrani and we all know that along with Bitcoin crypto, Ethereum, and other altcoins are all part of the cryptocurrency ecosystem. But the interesting thing is That, they serve different purposes, have distinct characteristics, and operate on different technologies. Now here we need to explore their use cases, origins, and technological frameworks to understand the differences.
The Pioneer of Cryptocurrencies Bitcoin
Bitcoin was the first ever cryptocurrency in the world, and a group or person called Satoshi Nakamoto introduced it in 2009. That all started with the primary purpose which is to act as a decentralized currency and save people from inflation and financial crisis, it is designed to function without the need for third parties like governments or banks. blockchain technology that operates this decentralized Bitcoin, a distributed ledger technology that records all transactions in a secure and transparent environment, and immutable way.
its scarcity which is a key feature of bitcoin. 21 million bitcoins is the capped supply of bitcoin crypto, And do you know? This particular mechanism makes it similar to a digital version of gold and that's the reason it's called digital gold. People see Bitcoin cryptocurrency as a store of value, especially as an inflation hedge. Also, you know? It is widely recognized as the king of cryptocurrency and the first decentralized digital asset and continues to dominate the market by market capitalization and we are all seeing the power of bitcoin and leadership on all the other crypto.
Ethereum: The Smart Contract Pioneer
Vitalik Buterin and a group of developers launched Ethereum in 2015. This was expanded on the blockchain concept introduced by Bitcoin in 2009. Unlike Bitcoin, Ethereum is totally different and it is not just a digital currency; it’s a wonderful platform that enables developers by using smart contracts they create and deploy decentralized applications (dApps). You can say the decentralized application was born because of Ethereum currency and it is considered the queen of the crypto world.
Ethereum is a platform and it has a native cryptocurrency whose name is Ether (ETH). This currency is used for computational services on the network and to pay for transactions. its versatility is One of the biggest advantages of Ethereum, but you should know that it comes with its own challenges. The Ethereum network has high gas fees (the costs associated with smart contracts and processing transactions) due to its popularity and faces scalability issues. I personally believe high gas fees are one of the biggest disadvantages of Ethereum and that's the reason I am not using this network.
Altcoins: A Diverse Range of Cryptocurrencies
Altcoin's full form is alternative coins and I know most of you don't know this lol. This particular word refers to any cryptocurrency other than Bitcoin. the interesting thing is they come in a wide variety of forms, each designed for different purposes and use cases for example hive has blogging and social media use cases. We can divide Altcoins into several categories:
1.HIVE: My personal favorite altcoin which works on completely decentralized and proof of delegated stake environment. It is most important part of Web 3.0 technology and Web 3.0 is the biggest revolution.
2.Litecoin: It has another name which is "silver to Bitcoin’s gold," so this shows how valuable this coin is. by Charlie Lee in 201, Litecoin was created. There is a similarity with Bitcoin and Litecoin operates similarly to Bitcoin but here you get an advantage that is a faster block generation time, enabling quicker transactions.
3.Ripple: For financial institutions, Ripple (xrp) aims to facilitate low-cost and fast cross-border payments. How it is different from Bitcoin let's understand it so it uses a consensus algorithm controlled by a small group of validators instead of relying on a decentralized network.
There are more than 25k more cryptocurrencies in the world now and daily new launching so we can't cover all of them.
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