Bitcoin has inspired an ever-growing army of followers and spinoffs, the de facto industry standard for cryptocurrencies. It has established trends by ushering in a wave of cryptocurrencies built on a decentralized peer-to-peer network.
Since Bitcoin isn’t the only cryptocurrency out there, it’s essential to research the alternatives to see which ones are succeeding. Here are a few cryptocurrencies that you might want to look into.
Let’s quickly go over what terms like “cryptocurrency” and “altcoin” mean before looking more closely at some of these Bitcoin (BTC) alternatives. In a broad sense, a cryptocurrency is described as a virtual or digital currency that appears as tokens or “coins.”
The vast majority of cryptocurrencies are still solely digital, despite the fact that some have entered the real world via credit cards or other initiatives.
Ethereum (ETH), a decentralized platform creating and running decentralized applications (dApps) free from third-party interference, fraud, or control, is the first Bitcoin alternative on our list. Ethereum aims to build a decentralized ecosystem of financial services that anybody in the world can use freely, regardless of their country of origin, race, or religion.
This element makes the ramifications for such people more compelling because people in some countries who lack governmental infrastructure and official identification can access bank accounts, loans, insurance, and a wide range of other financial items.
Ethereum uses ether, a platform-specific cryptographic token, to power its apps. Developers who want to build and run applications on the Ethereum platform and investors wishing to buy other digital currencies using ether seek out ether (ETH), which functions as a mode of transportation on the Ethereum network.
Although it trails Bitcoin by a wide margin, Ether, introduced in 2015, is currently the second-largest digital currency by market capitalization. Ether’s market cap of $147.5 billion, trading at roughly $1,200 per ETH as of July 8, 2022, is less than half that of Bitcoin.
Cosmos is a decentralized network that offers open-source tools for programmers to build their interoperable blockchains. ATOM is the native coin of Cosmos. One of their main issues is that blockchains are developed independently and that only a small number of them can exchange data with one another.
Cosmos aims to turn into the “internet for blockchains,” enabling currencies and data to be freely shared between any two blockchains that are a part of the Cosmos ecosystem.
Numerous cryptocurrencies cannot communicate; users cannot send Tron across the Dogecoin network. One of the most well-known platforms, Cosmos, aims to address that issue by enabling blockchains to communicate with one another.
Each distinct blockchain is referred to in Cosmos as a “zone.” The inter-blockchain communication (IBC) protocol links all blockchains together and is connected to each blockchain.
Blockchains created on top of Cosmos maintain their independence while interacting with other blockchains thanks to the implementation of the IBC protocol and the Byzantine Fault Tolerant consensus process by Tendermint. A key contributor to the Cosmos network is the software firm Tendermint.
Additionally, Cosmos offers pre-built modules to developers, enabling them to swiftly launch new blockchains that can be tailored for particular use cases.
Cosmos uses the proof-of-stake method to secure its network, a more environmentally friendly way to secure a blockchain, and guarantees that no one spends money that isn’t theirs. If you are interested in this idea of blockchain sharing, follow the provided link to learn how to buy Cosmos coin.
One of the first and most well-known stablecoins—cryptocurrencies that attempt to tether their market value to a currency or other external reference point to lessen volatility—was Tether (USDT).
Most digital currencies, including popular ones like Bitcoin, have frequently experienced periods of extremely high volatility. Tether and other stablecoins aim to reduce this volatility to draw in consumers who may otherwise be wary.
The cost of Tether is directly correlated with the value of the US dollar. Instead of truly converting to fiat money, the system enables users to transfer funds faster and easily from other cryptocurrencies back to dollars.
Tether, introduced in 2014, is “a blockchain-enabled platform…to facilitate the use of fiat currency digitally.”
5 Effectively, this coin reduces the volatility and complexity frequently associated with digital currencies by enabling people to use a blockchain network and related technology to transact in traditional currencies.
USD Coin is a stablecoin that uses fiat-collateralized reserves to peg its price to the U.S. dollar. It holds an equivalent amount of fiat money to the total supply of USD Coins in circulation.
2018 saw the debut of 7 USD Coin by the Centre Consortium, which also includes Circle and Coinbase. Circle is a regulated stablecoin based in the United States and is subject to regulation.
Market capitalization for USD Coin as of July 8, 2022, is $55.5 billion, with a $1 coin price. Both market cap and trade volume place it at number four.
A utility cryptocurrency called Binance Coin (BNB) is used to pay the commissions for trading on the Binance Exchange. It ranks third in terms of market capitalization among all cryptocurrencies. 10 Trades can be made at a discount for those who pay for the exchange using the token.
The blockchain that powers Binance Coin also serves as the foundation for Binance’s decentralized exchange. Based on trade volumes, Changpeng Zhao launched the Binance Exchange, among the most popular exchanges worldwide.
Initially, Binance Coin was an Ethereum blockchain-based ERC-20 coin. It eventually had a mainnet launch of its own. The network employs a PoS consensus model. As of July 8, 2022, one BNB was worth around $241.83.10, and Binance Coin had a market capitalization of $39 billion.