It is undeniable that Bitcoin is the trendsetter and has emerged to be the defacto standard of cryptocurrencies, there are other alternatives to Bitcoin too. If need be defined, cryptocurrency is a virtual or a digital form of money that appears in the form of tokens. Even though these are now available in the physical world in the form of credit cards and other such plastic forms, the lion’s share of them still remains intangible.
The Different Types of Crypto:
Value Tokens: Cryptos which are used for payments among a decentralized network of users are called to be value tokens.
Security Tokens: Block-chain-based tokens that are not used as money but issued as part of an initial coin offering, that speaks for a stake in a blockchain or defi project, are called security tokens.
Utility Tokens: Tokens that come with a particular utility or function such as sharing files across a decentralized network or offering decentralized DNS service for internet addresses, these are known as utility tokens.
Although there are these detailed differences, all of these cryptos function and trade in the same way on crypto exchanges.
Alternatives to Bitcoins:
It is a decentralized software platform that provides for smart contracts and decentralized applications that can be constructed and run without any downtime, fraud, or control from a third party. The aim of Ethereum is to achieve a decentralized suite of financial products that anyone and everyone can get free access to.
This is one of the first cryptocurrencies following the footsteps of Bitcoin. Litecoin bases itself on an open-source global payment network that does not come under the control of any kind of central authority. Since it comes with a faster block generation rate, it offers a quicker transaction confirmation time.
Referred to as the ‘Ethereum killer’ Cardano is still in its initial stages, it has overpowered the former to the proof-of-stake consensus model. It is still under development and requires a lot of work in terms of decentralized financial applications.
This one is unique and wishes to deliver interoperability among the blockchains. Its core competency lies in its relay chain and also makes way for ‘parachains’ with their own native tokens for particular uses. It also enables developers for shared security which is to create their own blockchains while using their own chains.
It is an open blockchain network offering enterprise solutions by putting together financial institutions for large transactions. It offers more instantaneous transactions with no third party involved and is also cost-effective for those making the transactions.
Binance Coin (BNB)
It is a utility cryptocurrency that functions as a payment option associated with trading on the Binance Exchange. It is also considered to be the third-largest cryptocurrency by market capitalization. Moreover, those who use this crypto as payment for the exchange can even trade at a subsidized rate.
The names mentioned above are some of the altcoins that are available. There are numerous more. However, Bitcoin is still and most likely to remain the most popular and dominant one in terms of economic value and usability.