By 
Everyone’s heard of Bitcoin and it’s incredible value spikes. These jumps are misleading phenomena in terms of what or how cryptocurrencies work overall. This is because, in reality, crypto offers much more than just an alternative to Fiat for making purchases or sales.
So, what other uses does blockchain technology have? Well, without diving too deep into details, one might say there are an infinite number of possibilities. The limitations depend on a variety of factors, though.
Bitcoin has plenty of potential, but is limited by gas fees and slow network speeds. Alternatives like Ethereum are more versatile and allow on-chain digital apps. If you’re curious about the many types of cryptocurrencies, you should consider reading ahead.
Ethereum
Ethereum’s popularity is almost primarily driven by its blockchain technology’s capacity to create and interact with apps and smart contracts. Yes, Ethereum can host applications without involvement from corporations or entities; it’s its own platform.
Additionally, people can hold assets on the Ethereum blockchain in the form of non-fungible tokens. ETH is quite versatile and developer-friendly. People use exchanges like virgocx.ca to trade for Ethereum from various parts of the world.
Binance Coin
Binance Coin, also known as BNB, is just one example of a coin meant to supply an infrastructure for a crypto exchange. While extremely useful in this case, it’s not its only function. Users buy and sell BNB on the Binance platform, but it also allows for commissions, staking, and token farming.
While versatile, it’s not as flexible as Ethereum.
Polkadot
Polkadot is a fascinating cryptocurrency. It’s more like an add-on than a blockchain technology in and of itself. However, it offers the same, if not more, functionality. It works with relay chains, parachains, bridges, and parathreads to interact with other blockchains.
While it’s decentralized like most other coins, it allows some organizations to protect certain activity. Many consider it viable for use inside of institutions.
USDT
USDT, or Tether, is considered a stablecoin, also known as a coin that’s built to maintain an equivalent value to a commodity or other currency. In this case, it’s gold. Depending on when you purchase one unit of USDT, it could equal one pound of gold, for example. However, if the price of gold rises, so does USDT.
Many use stablecoins to leverage the blockchain and transfer funds around the world.
The Various Types of Cryptocurrencies
Taking a quick look at the various types of cryptocurrencies makes one thing obvious. That is, blockchain technology is still in its infancy. Titans like Ethereum show the world that almost anything is possible with the blockchain, but humanity is just getting started in this apparently new frontier.
Stablecoins, utility tokens, alternatives to Fiat, and coins for a specific ecosystem all point in one interesting direction. The metaverse is growing in popularity, and blockchain technology fits the bill perfectly. Distributed ledger technology means more autonomy for users that jump into the virtual world.
Hopefully this article provided some useful information regarding the cryptocurrency market. If it did, make sure to take a peek at others around the site!
Comments