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A Brief Look into The World of Cryptocurrencies

Cryptocurrency is coined from the word “crypto”, which refers to a complicated process called “cryptography” that gives birth to digital currencies. One of the most common features of cryptocurrencies is their aim of developing a technology for digital payment transactions that are completely decentralised.

The aim of decentralising these cryptocurrencies also comes with the development of technology wherein the government will not be able to take control or manipulate them in any other way. And, since it is beyond the control of the government, it is this feature of cryptocurrencies that puts it under fire.

Today, there are already thousands of cryptocurrencies. And, if you’re looking to start crypto trading, the information shared in this article will prove to be helpful. As of December 2021, there are 8,000 kinds of cryptocurrencies that exist. However, not all of these enjoy the popularity and trading volume of Bitcoin and other well-known cryptocurrencies. Below are examples of cryptocurrencies that have gained much attention from the community of investors and traders.

Bitcoin, Cryptocurrency, Pièce De Monnaie, Virtuel

 Bitcoin (BTC)

Bitcoin was created by Satoshi Nakamoto in 2008. However, everybody in the cryptocurrency community is aware that such is just a pseudonym that could refer to an individual or a group of people. Those who have started trading with the help of the Bitcoin Up website are pretty much aware that Bitcoin is the first cryptocurrency to claim that it operates through a trustless system. Learn more about Bitcoin Up on uchain.world.

Bitcoin’s innovative design helped provide solutions to a problem that’s very common among many other cryptocurrencies developed decades before the birth of Bitcoin- the double-spending problem. Bitcoin miners make use of computers for the verification of transactions and for the generation of more bitcoins. These processes are called Proof-of-Work or PoW.


If Bitcoin is the first digital currency to exist in the world of cryptocurrency, Ethereum is considered as the first alternative to Bitcoin. Ethereum aims to produce a decentralised suite of products that can be used in the financial industry wherein anyone can access regardless of ethnicity or nationality. And, since Ethereum operates from a blockchain that has a general-purpose in handling money and other assets, it is confronted with issues of energy consumption, privacy, security, and scalability.

Litecoin (LTC)

Litecoin was created by an MIT graduate, who also happens to be a former Google engineer – Charlie Lee. What makes Litecoin stand out from other types of cryptocurrencies is its innovative design in terms of speed in block propagation. Another factor that enables Litecoin to gain much attention from the cryptocurrency community is its Scrypt Hashing Algorithm. Litecoin operates much like Bitcoin, and this comes as no surprise considering that the idea behind its creation is to complement Bitcoin much like silver does to gold. Litecoin is also known to have a faster transaction verification time.


Cardano (ADA)

Cardano has a similarity with Ethereum as it also operates on a smart contract platform. It was in 2015 that this cryptocurrency was founded by Jeremy Wood and Charles Hoskinson. Cardano, with its cryptocurrency symbol ADA, focuses on a higher level of security through a layered architecture. This is the first cryptocurrency to have been designed based on a peer-reviewed academic study and scientific philosophy.

The fundamental components of each Cardano transaction include two layers. These are the computation layer and the settlement layer. The ADA cryptocurrency has a maximum supply of 45 billion tokens. This hard limit on its supply helps guarantee a deflationary attribute. This cryptocurrency also aims to come up with an inflationary trend which is expected to begin when 2030 comes.

Polkadot (DOT)

Polkadot was launched in May 2020, and now it continues to gain traction among cryptocurrency traders, developers, and investors. Polkadot was created to solve two issues: scalability and governance. Polkadot’s internal token is called the DOT. Polkadot is designed to provide solutions to issues that usually arise in terms of the number of transactions handled per second. It also aims to solve problems relative to protocol changes and upgrades. The DOT token allows its holders to cast a vote on the potential changes to a certain code. Once these votes reach a consensus, an upgrade will be automatically done across the network.

Whether you’re reading this article from an investor’s perspective, a tech’s standpoint, or simply from a curious mind, the world of cryptocurrency is no doubt interesting, exciting and risky. So, if you’re looking to invest in it for the first time, better be cautious.


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