List of cryptocurrencies and their purpose

The aim was to make cross-border payment transactions cheaper and faster. Over the years, it has proved to be a store of value. It's like the Ethereum blockchain has Ether as its token. Solana Blockchain has Sol as its token. Asset Stablecoins can be categorised as assets as the value of these cryptocurrencies is derived from the value of an external asset. Gold GLC is tied to the value of gold. Earlier, if investors decided to exit any cryptocurrency, they could exchange it for either any other crypto which may or may not be preferable or fiat currency.

Now due to the availability of stablecoins, they could choose to remain in the crypto ecosystem by exchanging their cryptocurrency for a more stable crypto while they decide on the next preferable choice. Commodities can also be used to settle a transaction. Object A lot of buyers think this is where the future of cryptocurrencies lies. These types of cryptocurrencies were created to finance special projects aimed at solving the problems of the world. For example, Siacoin SIA aims to solve the problem of expensive cloud storage.

CTS Cryptocurrency comes under many names. You have probably read about some of the most popular types of cryptocurrencies such as Bitcoin, Litecoin, and Ethereum. Cryptocurrencies are increasingly popular alternatives for online payments. What is cryptocurrency? A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms.

The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet. These wallets can be software that is a cloud-based service or is stored on your computer or on your mobile device.

The wallets are the tool through which you store your encryption keys that confirm your identity and link to your cryptocurrency. What are the risks to using cryptocurrency? Cryptocurrencies are still relatively new, and the market for these digital currencies is very volatile.

Since cryptocurrencies don't need banks or any other third party to regulate them; they tend to be uninsured and are hard to convert into a form of tangible currency such as US dollars or euros.

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This is theoretically possible, but the amount of power and money needed to do it successfully makes an attempt virtually impossible. Cryptocurrency Transactions Are Mostly Confidential With traditional currencies issued by governments, you can privately transact or pay for something in person using physical cash. Paper, metal, cloth, and plastic currencies make up a tiny fraction of the total amount of most fiat money in circulation.

Large withdrawals of physical cash are quickly flagged and reviewed by a central authority like governments and financial system regulators. Note: Monitoring large cash transactions is a good thing. It upholds the legitimacy of the currency and deters criminal enterprises like money laundering.

Cryptocurrency is different. It depends on well-designed math to track the exchange between two people or companies. This occurs mostly anonymously. While the ledger or list of transactions is publicly viewable worldwide, the parties exchanging cryptocurrency are more private.

By definition, cryptocurrencies are held electronically in digital wallets. The owner is the holder of the private key to the wallet. The currency is exchanged digitally from mostly anonymous wallets owned by the users. Some crypto projects like Monero are designed to be resistant to identity discovery. This is an exciting concept for enthusiasts, collectors, and even gifts.

It brings a bit of digital cryptocurrency into the real world. Disclosure: This is not a paid sponsorship. The author, Data Overhaulers, nor its parent company hold any Bitcoin currency at the time of publication. The consensus network is simply all the computers that receive copies of the blockchain or distributed ledger. For more established cryptos like Bitcoin or Ethereum, the cryptocurrency networks are so big that a hack undertaking is mostly impossible. In the early days of cryptocurrency, it was easier to gain the majority of control as the cryptocurrency network itself was much smaller.

The smaller the network, the more vulnerable it is to hacking. Mining is the process in which cryptocurrency transactions are verified, and blocks are assigned their hashes. It requires a lot of computing power. Though hacking and manipulating the blockchain was not their goal, they decided to limit the size of their influence on the Bitcoin network.

The necessary balance between potential profit and network power is another form of blockchain security. Too much network power will result in a loss of profit and the stability of the currency. Did you know countries are testing cryptocurrencies as their national money? This article tells you what backs cryptocurrency for real. Imagine a situation where you want to send money to a friend online to their account.

There are many ways in which this could a transaction could go wrong. All these are possible scenarios because there is a central point of failure: The financial institution. And that is why cryptocurrency was created as the future of currency! Now, picture the same scenario between two people using a bitcoin application or another cryptocurrency. An alert pops up asking you if you are sure you want to send bitcoins. If you accept, the transaction is processed immediately.

The system authenticates user identity and checks whether you have the required balance to process the transaction. The objective of cryptocurrency is to remove all the issues that come with traditional banking. Also, international crypto transactions are faster than traditional wire transfer which have been around since or any other transfer mode.

Unlike wire transfers that take hours or even days, crypto transfers take only minutes, if not seconds. What Problem does Cryptocurrency Solve? Dealing with Western Union and other international money transfer companies can be cumbersome, bureaucratic and slow.

Doing the same with a bitcoin is smooth and fast once users are familiar with the process. Another reason why cryptocurrency is valuable is that it is a one-to-one affair, taking place on a peer-to-peer networking structure that cuts out the middleman, considerably reducing transaction costs.

Fiat currencies are subject to many risks and restrictions. For instance, banks and other similar institutions are vulnerable to bust and boom cycles in the economy. And in some scenarios, such cases can result in bank crashes, as has occurred several times in the past. On the other hand, crypto is autonomous as its value is not linked to any government policies.

This means as a crypto owner, you are in total control of your money. Similarly, the robust encryption employed throughout the blockchain network are a powerful safeguard against account tampering and fraud. Nothing can match that. Not even stocks, real estate or gold! That said, there are some problems with cryptocurrencies. IOTA aims to be the most widely used cryptocurrency in this ever-growing internet world.

IOTA has the potential to change the way we do payments because it offers completely free transactions which are not possible with other cryptocurrencies. It is also the first cryptocurrency without a blockchain; instead, it uses something called Tangle technology. Ripple is a payment protocol that allows banks to send real-time international payments to each other without the need for a central counterparty or clearance hub.

It is designed in a way that it complies with all the banks and central banking institutions. Ripple can be implemented on top of swift infrastructure which all the banks currently have. Ripple XRP is solving the valid problem of international remittances.

During its initial days, I was quite skeptical regarding Ripple, but it is definitely trying to solve some of the pain points of international banking. Expect a huge growth of XRP because banks are hungry to adapt to blockchain tech, and Ripple provides a ready-made, plug and play solution for their problems. Buy Ripple Now Civic Universal Digital Identity Civic is on a mission to create a digital identity for everyone in a decentralized manner. These identities will be compliant with various rules and regulations of the governments around the world like a digital ID number.

Civic uses the blockchain to secure data. This data is stringently verified by Civic or identity verifying partners and then attested and anchored to the blockchain in the form of un-decryptable data. This data is only exchanged between the user and the requestor of that data by using Civic tokens CVC. See this introductory video of Civic to understand more: This way, you need not give your data again and again to various entities. Civic makes it easy and truly frictionless for users and identity requestors to verify data and prevent identity theft because it is all stored on the blockchain.

Civic is implementing a practical use case for identity verification, and I believe this project will further prove itself to be a valuable crypto-coin in the very near future. And only the future will tell which of these new currencies will be the most practical for the market. For now, I have listed only those currencies which I strongly believe in.

Needless to say, apart from these 10 currencies, there are more currencies that have practical use cases. But right now, these 10 are the most promising to me. I will be updating this list again, so keep an eye on CoinSutra for all the latest crypto developments. What cryptocurrency do you think is the most practical? Which one do you think has the best use case?