Bitcoin
The most well -known cryptocurrency is bitcoin. This first generation cryptocurrency is a peer-to-peer online currency that uses blockchain technology to make transactions without the need for an official intermediary.
Scarcity is the key to the value of bitcoin. There are pre -defined limits, including the release of new bitcoin that is managed by an algorithm and limited to 21 million coins. “Mining” for bitcoin involves users solving difficult computational equations to find new blocks to add to the chain. However, as more blocks are found, the reward for bitcoins continues to decline.
By April 2022, 91 percent of all bitcoin has been mined, and it is estimated that the last coin was mined around 2140. What happens when all the coins have been mined? That has yet to be determined.
Ethereum
Ethereum is the second largest cryptocurrency on the market and is referred to as the second generation cryptocurrency. Like bitcoin, users mine ethereum by solving complex equations, and a transaction fee-called a “gas” fee-applies to cover computing requirements.
Ethereum is tied to the Ethereum Network, a blockchain-based software platform known for introducing smart contracts.
A smart contract uses the basic formula “if/when … then” to securely execute contracts without central authority. By removing the human element, all participants can be assured of an immediate result without any time being lost and used in transactions as well as to automate workflows. The security and flexibility of the platform have made it a favorite for developers, and it is the primary home for decentralized applications (dapps) such as DeFi and NFT.
Cardano
Cardano, which is said to be the third generation of cryptocurrency, is a proof-of-stake blockchain platform founded by Charles Hoskinson, co-founder of ethereum.
Cardano also enables smart contracts and dapps (decentralized applications), but the main point of difference is that it is the first blockchain platform established in peer-reviewed research. Each new feature is submitted for academic peer-review before implementation.
There are several companies that use cardano to improve traceability and transparency. Agricultural companies use dapps to track fresh produce from the farm to the fork, retailers can track and prevent counterfeit products and education credentials can be stored in an indifferent manner.
The ADA is the primary currency in the cardano network and is used to provide liquidity for network developments and is also used to pay for transaction fees. There is a limit of 45 billion ADAs, with nearly 33 billion already available on the market.
The proof-of-stake method speeds up transaction times and reduces environmental impact because it does not require the same time and computational energy for transaction verification.
Terra (Luna)
Terra is a decentralized payment platform consisting of two main tokens, terra and luna. Terra is made up of stablecoins that track against the price of fiat currencies such as the US dollar. Luna is the native staking token of terra used for management and mining.
Terra as a platform is different from many others because the two tokens keep each other in balance and respond to supply and demand. This is meant to counteract the extreme volatility in the cryptocurrency market.
If the price of a stablecoin rises above the currency it is tied to – creating a situation where supply is too small and demand is too high – users are incentivized to burn the luna to make more terra up when the terra reaches its target price. Conversely, if the value of a stablecoin drops compared to its base currency then users will be given an incentive to burn terra to make more luna.
HBAR
HBAR is the native, energy -efficient cryptocurrency of Hedera’s public network. The public network offers performance, speed and size for developers to create dapps for business consolidation.
ServiceNow, an American software company that helps companies manage digital workflows, has partnered with Hedera to use distributed ledger technology in digital workflows including process and data integrity, tokenization and digital assets, digital identity and privacy and multi-party business processes.
HBAR tokens provide liquidity to the platform to support the development and scale of projects using the Hedera network. Developers also use HBAR tokens to pay for network services, such as transferring HBARs, managing fungibles and NFTs and logging data.
There is a maximum supply of 50 billion HBAR, of which 19.57 billion (almost 40 percent) is in circulation. Hedera already works with many leading organizations, including Google, IBM, Boeing, Ubisoft and LG.
Gala
Gala is a token of the Gala Games company. Gala Games makes play-to-earn blockchain video games and recently launched Gala Music.
The token serves as a utility token throughout the Gala ecosystem, allowing users to purchase in-game items or purchase music (NFTs), reward nodes and player to player (P2P) transactions.
More than 16,000 players operate nodes that help enable the Gala ecosystem. Players and node owners were enlisted, through distributed voting mechanisms, to help determine what games should be added to the platform or what should be funded by Gala Games ’decentralized ecosystem.
Gala Music aims to give artists the freedom to mint, drop and share music the way they want. Snoop Dogg has partnered with Gala Music on a new listen-to-earn NFT project, where fans can earn rewards, including gala tokens available in the Gala Games ecosystem.
Lattice
Lattice is a low-market cap altcoin with a soon to launch simple exchange with the goal of providing easier, cheaper access to the world of crypto.
The Lattice Exchange is built on the Constellation blockchain to specifically address cryptocurrency and industry use cases, as well as the traditional financial industry and security markets.
An example of DeFi’s emerging technology, Lattice Lending provides a lending solution backed by a long-standing global financial institution that will allow holders to borrow fiat on a non-purpose and non-recourse basis. . Loan sizes can vary between $ 250k to $ 100m+ and the user benefits from the long-term value of the crypto assets while using the funding for other purposes, such as property or otherwise. more business ventures.
Glossary of crypto terms
Blockchain
Blockchain is a shared ledger that stores data of any kind and specifically lends itself to cryptocurrency as an accurate, unchanging record of transactions between peers.
Shared ledger
The information within the blockchain is not held in just one place-it is widely distributed to ensure that there are accurate and verifiable copies of information and transactions available 24/7.
Nodes
In other words, a node is a computer that connects to the blockchain network of a cryptocurrency. Nodes contribute to the security and accuracy of the blockchain through independent verification of transactions.
Smart contracts
A smart contract is a computer program designed to execute the rules of the contract without the need for a third party. This could be for a transaction or a loan.
Dapps
A decentralized app (dapp) is a type of distributed open-source software application that runs on a peer-to-peer blockchain network. Dapps are as varied as conventional apps, but they work autonomously when they are launched.
Decentralized Finance (DeFi)
Decentralized Finance (DeFi) is an emerging technology that uses blockchain to eliminate the need for third parties such as banks to connect people to alternative forms of finance, such as peer-to-peer loans. . Cryptocurrencies can be used within a DeFi platform but are not considered DeFi.
Gas bills
Gas fees are network fees charged to pay for the computing energy required to process and validate blockchain transactions.
Fiat money
It is government-issued currency that is not pegged to a physical commodity such as gold or silver.
Stablecoin
Stablecoins try to offer price security by placing their market value on an external reference. It can be pegged to hard assets such as gold, real estate or other precious metals, or to fiat currencies such as the US dollar, euro or Chinese yuan.
Altcoin
Basically anything other than bitcoin.