Cryptocurrencies

Kinds of Cryptocurrencies.

• Bitcoin

• Altcoin (Alternative Coin)

Bitcoin is a digital or virtual currency that was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin was the first decentralized cryptocurrency, hence it is not controlled by the government. while Altcoins are any cryptocurrencies that are not Bitcoin example: Ethereum.

Categories of Cryptocurrencies.

• Utility Coins: There are designed to serve a particular use case in an ecosystem example: BNB.

• Privacy Coins: Unlike Bitcoin which is transparent and traceable, privacy coins are highly secured with advanced cryptography techniques to hide the identities of the parties transacting.

• Security Coins: They are not popular. Without using ambiguous words, these coins are for investment contracts. Digital or physical assets such as real Estate can be transacted within the blockchain. Example Polymath(POLY).

• Stable Coins: Just as the name implies, they are coins with a stable value pegged to a conventional currency. 1 USD = 1 USDT

• Payments Coins: Leveraging the power of peer-to-peer, these coins allows individuals and business to send and receive payments without the need for a traditional bank or card company. Example: cUSD.

• Government Coins: These coins give people the right to participate in the decision-making process of a decentralized network by electing key participants. Example: MKR of MokerDAO, celoAfricaDAO.

• Meme/shit Coins: These names are not used interchangeably, Meme coins have value while shit coins do not. However, they are both considered to have little or no value or potential and are commonly created for entertainment.

• Native Coin: In a nutshell, bitcoin is the first coin on the Bitcoin blockchain, likewise, ETH is the first coin on the Ethereum blockchain. Hence, the Native coin is an integral part (genesis) of the operation of the network protocol.

Coin VS Token

Coins are cryptocurrencies that operate independently on their own blockchain example: ETH is operated on Ethereum Blockchain. WHILE Tokens are built upon an ALREADY existing blockchain network example Uniswap tokens which are built on the Ethereum blockchain.

Cryptocurrency units

Reference

Alphablocks

Anthony Annaelechukwu

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