Cryptocurrencies have steadily gained global renown and now have rich applications in everything from transportation and education to healthcare, finance, collaboration, and more. Here we talk about some of the real-world functions, applications, and benefits of tokens and assets available for trade on Wisebitcoin.
At the time of this writing, the total value of all cryptocurrencies stands at about $2.5 trillion. This would place cryptocurrencies in first place as the world’s most valuable “company” in terms of market value – ahead of renowned businesses and brands such as Apple, Microsoft, Amazon, Alphabet, Tencent, and Facebook.
A common question in many people’s minds, however, is this: What do cryptocurrencies do? What value do they have other than as a means of trade or a speculative asset? Read on below for the answer.
Bitcoin is a decentralized cryptocurrency. It is a peer-to-peer online currency. This means that all Bitcoin transactions occur directly between network participants without the need for any intermediary such as a bank or government to permit or facilitate the trade. Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use. Over the past year, the value of Bitcoin has risen almost 500% from about $11,000 to roughly $60,000 today.
Ethereum is a decentralized, open-source blockchain system. It aims to allow users from all over the world to write and run software that is resistant to censorship, downtime, and fraud. You can write and run code on the Ethereum network and build in automation, security, collaboration, and many more features for a vast range of systems and applications. The value of Ether, the native token of the Ethereum network, has delivered an ROI of over 130,000% since the project was first launched. Over the past 12 months, the value of Ether has jumped almost 10-fold from about $380 per token to about $3,800 today.
Bitcoin Cash (BCH)
Bitcoin Cash was developed in response to concerns regarding Bitcoin’s salability and processing times. One block in the BTC blockchain can hold 1MB of data. One block in the BCH blockchain can hold 32MB of data. This allows for more transactions to be handled per second to help BCH be used as a peer-to-peer form of payment.
Litecoin was designed to provide fast, secure, and low-cost payments. It was built on the Bitcoin protocol but uses a different hashing algorithm to connect each block in the blockchain and also differs in block transaction times. Processing Litecoin blocks is faster than processing Bitcoin blocks and the costs of doing so are also considerably lower, which were important considerations when Litecoin was first launched as a solution for micro-transactions and point-of-sale payments.
EOS was designed to allow developers to build decentralized apps on the blockchain. It provides tools and a wide range of educational resources to developers to quickly build fast, performant, and low-cost apps that run on the blockchain. It also aims to improve user experiences and provide better security and less friction for consumers – a major obstacle to blockchain adoption around the world.
Cardano aims to allow developers to leverage blockchain technology and decentralization to bring about positive global change. Its founders want to redistribute power from unaccountable structures to individuals and create a society that is more secure, transparent, and fair. It has found many uses in a wide range of industries, from education and agriculture to finance and healthcare. The project’s founder, Charles Hoskinson, was also a co-founder of Ethereum and is currently in South Africa working to help onboard Africa-based businesses and institutions to the Cardano platform.
Cosmos aims to provide a solution to slow, expensive, unscalable, and environmentally harmful crypto algorithms such as proof-of-work via an ecosystem of interconnected blockchains. Cosmos also aims to make blockchain technology less complex and easier for developers – much like EOS – using a modular framework for building and running decentralized apps.
Polkadot facilitates the cross-chain transfer of data or assets of different types across different blockchains. Blockchains such as the Bitcoin, Ethereum, and Cardano blockchains run on different protocols and have different computational requirements. Polkadot helps bring together different ecosystems, platforms, and applications built on different blockchains to build a complete, integrated, and decentralized network that is controlled by its users while also simplifying the creation of new applications and services that seamlessly work together.
Filecoin is a decentralized storage system. Using the Filecoin token, participants on the network can earn cryptocurrency for providing storage space on unused hardware. Smart contracts and blockchain technology are used to ensure the privacy and security of the stored data.
Chainlink integrates off-chain data (for example, real-world data such as weather, sports scores, and current events) into smart contracts. Chainlink is a major player in the data processing field and works with many trusted data providers, including Brave New Coin, Alpha Vantage, and Huobi. These data providers can sell access to data directly to Chainlink and the platform allows them to monetize the data they have.
SushiSwap is an automated market maker, which acts like a decentralized exchange that uses smart contracts to create liquidity and trading markets from investor-provided funds for any given pair of tokens. This token and the tools that come on the SushiSwap platform are examples of advanced DeFi solutions that can create new income streams and investment opportunities in the decentralized finance world while also creating inroads for traditional financial players to gain exposure to the crypto world.
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