REVOLUTIONARY IMPACT OF NOTABLE CRYPTOCURRENCIES

Introduction 

According to CoinMarketCap, there are at least 2.4 million crypto-currencies and 735 exchanges, and the cryptocurrency market has an estimated market valuation of $2.4 trillion. This data changes almost constantly, but one thing is constant: the valuation of most notable cryptocurrencies has only grown higher and higher since its inception, and it does not plan to take a downward turn. 

Notable cryptocurrencies range from Bitcoin to Litecoin, Tether, SOL, and Ethereum; amidst an enormous number of cryptocurrencies available, one could find it challenging to decide whether to leap into the crypto world. A list of notable cryptocurrencies might be a great place to start because of the security they offer and their popularity. However, a fundamental knowledge of the working principle behind these notable cryptocurrencies will be able to give you an idea of what to expect and also look out for when divining into the world of the unknown in cryptocurrency. Let us take a look at a few of them. 

Notable Cryptocurrencies, working system and revolutionary Impact

  1. Bitcoin (BTC)

Bitcoin (BTC) is a revolutionary cryptocurrency with a market value of over $1.3 trillion. Satoshi Nakamoto, an unknown creator, introduced it in 2009, and since then, Bitcoin has grown in fame, use and worldwide acceptance.

In its inception, Bitcoin had no recorded cost price because no one was willing to place a premium on it. However, the first-ever sale of Bitcoin was on October 12, 2009, when a Finnish developer, Martti Malmi, who worked on the project, sold 5050 BTC for $5.02, making a single unit worth $0.0009. 

In May 2016, a single Bitcoin sold for around $500. As of the first quarter of 2024, one bitcoin is worth between 65,000 and 70,000 in dollars, depending on the volume of the trade in the day. 

Blockchain Technology

BTC, as well as many cryptocurrencies, are based on blockchain technology, a ledger that records transactions over a network of several thousand computers. Bitcoin remains intact and secure from scammers because updates to distributed ledgers must be proven using a cryptographic technique, a process that is called proof of work. Blockchain transactions create a link connected (chained) to several blocks of existing transactions. This concept forms the basis for the word blockchain. It is such that when miners create a new block, the information on the old block links cryptographically to the new block, so it is impossible to alter the new block because of the chain connection between all these blocks.

BITCOIN - NOTABLE CRYPTOCURRENCY

Revolutionary Impact and Transitions of Bitcoin

The world’s first real-life BTC transaction was on May 22nd, 2010, when Laszloy Hanyeez ordered two pizzas for 10,000 BTC, the equivalent of 25 dollars at retail. Many nations and organizations have publicly endorsed this revolutionary cryptocurrency, while others still find its adoption very challenging.

El Salvador adopted Bitcoin as a legal tender in 2021. Ukraine has also used this opportunity to raise funds amidst its crisis, raising more than ten million dollars to fund the needs of its distressed citizens and military personnel. All of this took place within the first week of posting the country’s crypto wallets. Iran has also been able to make successful cryptocurrency transactions worth billions of dollars using BTC to bypass financial sanctions placed upon the country by the US government.

  1. Ethereum (ETH)

History of Ethereum

Vitalik Buterin, a 19-year-old computer programmer and Bitcoin Magazine co-founder released a whitepaper in 2013 proposing a highly flexible blockchain that could support virtually any transaction. In 2014, Vitalik worked with Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin, who co-founded the company with him. 

They crowdfunded the development of the Ethereum protocol after a sale of $18 million in pre-launch tokens. Ethereum was announced at the North American Bitcoin Conference in Miami in January 2014. In 2015, the first public version of the Ethereum blockchain launched in July, and smart contract functionality began to roll out on the Ethereum blockchain.

ETHEREUM BLOCKCHAIN - NOTABLE CRYPTOCURRENCY

Market Cap and Capacity of Ethereum

Ethereum is a cryptocurrency that sits next to Bitcoin, with a market valuation of approximately 430 billion dollars and over 120 million ETH tokens in circulation. Ethereum is well-known for its digital currency, ether (ETH), which uses blockchain technology to create reliable public digital ledgers. 

Although Bitcoin and Ethereum have similar features, they have distinct long-term objectives and limits. Ethereum operates a decentralised computing strategy that can host several independent applications. Its open-source programming facility allows it to exist in a way that is not owned or operated by a single individual. Notably, in September 2022, Ethereum switched from proof of work to proof of stake

As a cornerstone, Ethereum serves as the foundation for a wide range of emerging technical innovations based on blockchain technology. Ethereum allows users to deploy their creations of permanent and unbreakable decentralised applications onto it, with which they can interact. Ethereum has the unique ability to build and execute smart contracts, which enable a vast ecosystem of applications on Ethereum, such as stablecoins (currencies pegged to the dollar by smart contracts), decentralised finance (DeFi) apps, and other decentralised apps (Dapps).

Future of Ethereum 

Ethereum has a very great future because of the future of cryptocurrency. It also has factors that have given it an edge over many others, including its constant upgrading and its open-source facility, which allows others to suggest improvements to its network. Ethereum shows excellent potential in the world of finance (be it personal or corporate) and even in many aspects of our evolving world.

How to buy Ethereum 

Investors or traders can buy ETH on almost any cryptocurrency exchange platform, making it easy for anyone to acquire a portion of the world’s second-biggest cryptocurrency. Numerous cryptocurrency exchanges support Ethereum, including Coinbase, Kraken, Gemini, Binance, and many others.

  1. Litecoin 

Litecoin was made public in 2011 by Charlie Lee, a former Google Engineer. In his exposition, Litecoin is considered the silver of Bitcoin’s gold, more like a twin pack of Gold and silver. Litecoin is a popular investment opportunity for many investors, not because of its complex functionality but because it is considered a long-term investment, just like every viable investment.

It features many similar functions, just like Bitcoin, although it has its own designated algorithm. Its mission is to hold a place in the day-to-day transactions of many, and this is proven true with its faster processing time compared with Bitcoin.

With a market cap of over 6.3 billion dollars and a daily trading volume of over 600 million dollars in the first quarter of 2024, you can buy or sell your Litecoin on any of the recognised exchange platforms in your region. However, there are a number of US-registered exchange platforms, such as Coinbase, Binance, Gemini, etc. 

  1. Dogecoin 

Dogecoin experienced a boom in 2017 and surpassed a $1 billion market cap in 2017 when crypto experienced a bull run. In 2019, the news of Dogecoin’s listing on the Binance exchange platform split the faces of its enthusiasts. In that same year, controversial Tesla owner Elon Musk publicly endorsed Dogecoin when he tweeted that he had been working alongside Dogecoin developers to speed up transaction speed and reliability. 

Moving to the first quarter of 2024, Dogecoin’s market valuation is approximately 22 billion dollars, and you can get your share of this meme coin by creating an account on any of the A-list crypto exchange platforms like Coinbase, Binance, or Robinhood brokerage

  1. Solana

Solana has outperformed many notable cryptocurrencies in the first quarter of 2024, ranking as the fourth most notable cryptocurrency. Meme coins emerged as a significant trend in the first quarter of 2024, and the Solana ecosystem is taking the lead in this buzz because of its user-friendly open-source technology that allows other developers to build their projects using the codes easily.   

Solana was founded in 2020 by Solana Labs, a company owned by Anatoly Yakovenko and Raj Gokal. Since its inception, it has witnessed outrageous growth, like its reputable 120-time increase in value in 2021. Solana is reputed for its ability to handle a lot of transactions at a cheaper and faster rate. This makes it a go-to ecosystem for many who cannot afford the gas fee for the Ethereum blockchain. Solana uses an improved version of Proof of Stake called Proof of History, a technology that uses hashed timestamps to validate transactions over the blockchain. 

As of the first quarter of 2024, Solana’s lead token SOL has a market cap of approximately 85 billion dollars and a 24-hour volume of 8 billion dollars. This ecosystem has a very bright future and is anticipated to trade its chief token SOL at over 1000 dollars by the end of the year, even though it only trades at approximately 200 dollars as of the first quarter of the year.

The advantages of investing in cryptocurrencies

  • Inflation prevention: Because FIAT currencies are always printed and because of several financial circumstances that surround FIAT money, there is a strong probability that the increase in the supply of FIAT currency will drastically exceed the quantity of cryptocurrency in circulation.  This will result in inflation. However, in the case of a cryptocurrency such as bitcoin, there are around the equivalent of 21 million bitcoins in circulation. Numerous additional cryptocurrencies operate in the same way. This indicates that the value of cryptocurrencies will continue to rise in order to keep up with the market, thereby preventing inflation.
  • Transactional rate: When it comes to moving cash to acquaintances, family members, or business companions in another nation, cryptocurrency transactions are one of the few that move at the rate of light. 
  • A user can complete Crypto transactions in minutes, and I’m guessing that if you live in our ‘get it quick’ environment, you can’t stand any activity that wastes your time without a reason.
  • Decentralisation: The decentralised method in which cryptocurrency operates is the foundation for cryptocurrency’s distinctiveness. It ensures a secure and confidential transaction. 
  • Accessibility: Your crypto transaction can be on the fly with a device such as a laptop or a smartphone and an internet connection. Traditional financial institutions may exhaust you with their time-consuming paperwork process for all types of verification. The ease with which you can transact using cryptocurrency is a significant advantage. 
  • Safe and reliant: You can only access your assets with the secret phrase to your crypto wallet. You can only retrieve your funds if you remember your key. While this may sound frightening for many people who find digital passwords challenging to remember, this demonstrates that cryptocurrency security is more than just a buzzword. What good is security if everyone can get in? Take advantage of the various methods for keeping your private key secure.

Risk involving Crypto-currency

  • Volatility: Crypto investments come with extreme volatility, with extreme highs and lows. A tweet from Elon Musk can lead to a huge drop in the value of your precious asset. 
  • Regulation Uncertainties: Due to cryptocurrency’s decentralised nature, government regulations around the evolving crypto world haven’t been as intricate and will need more reviews as time goes on.
  • Security issues: If you choose to trade unverified cryptocurrency assets, you might fall victim to a scammer. Hence, you must do thorough research before investing in crypto-currency using any exchange platform that verified Investors do not recommend.
  • Technical (retrieval of private key): As long as you can vividly recall your private key, you should be confident that your cryptocurrency is safe. However, if you have an issue keeping tabs on information like your passkeys, then investing in cryptocurrency poses a potential risk. A crash or loss of Your storage system, like your hard drive, where you store your secret phrases, can also lead to a considerable loss. 

However, there are third-party private key custodians like Fidelity Digital Assets that can help you store your private keys so that you don’t lose them even if you forget or crash your hard drive.