An Overview of Popular Cryptocurrency Platforms and Protocols

The new payment technology- cryptocurrency, is known for being secure and safe due to its cryptographed nature. This nature and Its closed structure make it the best for transactions. Independent of government and economic regulations, cryptocurrency has grown to be famous for its value.

Bitcoin is decentralized, and this factor has contributed to its increased market value as it strives to become more significant than it is with different new projects. These projects aim to utilize this currency fully, bringing more meaning and significance.
 
Since the invention of Bitcoin in 2009, the mother of all cryptocurrency has birthed and inspired the development of over a thousand more cryptocurrencies called altcoins. Several platforms and protocols are utilized in the cryptocurrency ecosystem; some of the best platform recommendations are available on sites like Cryptomaniaks.

Popular Cryptocurrencies Protocols

As mentioned earlier, over a thousand cryptocurrencies are in the crypto market. For the case of this educational guide, we will only explore a few popular cryptocurrencies and their protocols below:

1. Proof-of-work Mechanism(PoW))

As the first ever and most popular cryptocurrency, Bitcoin is known to be decentralized, operating on a peer-to-peer network that allows funds transfer between individuals without involving a third party. The proof-of-work (PoW) mechanism on the Bitcoin network is for confirming and recording transactions on the network’s blockchain, a decentralized public register for all Bitcoin transactions.

2. Proof-of-stake Mechanism (PoS)

As a decentralized platform, Ethereum employs the use and creation of smart contracts and the distribution of decentralized applications known as dApps. The agreed mechanism for recording and confirming transactions on the Ethereum network is the proof-of-stake (PoS).

The smart contracts employed on the Ethereum network are self-executing contracts whose terms and conditions are in the lines of code. The accepted currency for fees and services on the Ethereum network is Ether. Ethereum has also integrated into other cryptocurrency projects like NFTs. Because of its value and utilization, Ethereum is the biggest competitor to Bitcoin in the cryptocurrency market.

3. Ripple Protocol Consensus Algorithm (RSPCA)

Ripple, as a cryptocurrency, has been made for integration and use in the financial industry. Its decentralized nature on a peer-to-peer network makes it eligible for borderless transactions and transfers of any cryptocurrency type, which includes Bitcoin, Ethereum, and many other fiat currencies.

XRP, an abbreviation of the ripple, is the currency used for the remittance of fees on the network. The unique nature of Ripple is such that it has a special agreed mechanism for payments on the web called Ripple Protocol Consensus Algorithm (RSPCA), as opposed to proof-of-work and proof-of-stake utilized by other cryptocurrencies.

4. Scrypt

Litecoin is similar to Bitcoin, but its fast transaction processing time makes it quite different from the mother of cryptocurrencies. As a lite version of Bitcoin, its consensus and agreement for payment recording and confirmation on the network are called Scrypt.

Scrypt is a hashing algorithm that requires an unusual amount of memory for processing, transacting, and confirming payments on the web. This feature makes litecoin exceptional and resistant to the standard hardware designed for mining operations.

Top Cryptocurrency Platforms

There are platforms whose purpose is to trade, store, exchange, and transact Bitcoin. These platforms take the business of transacting cryptocurrency into their hands, bringing everyone who wants to get involved in cryptocurrency into a large ecosystem. There are over 200 of these platforms, but only a few will be recommended and explored in this educational guide.

1. Binance

Today, the Binance platform is one of the top-recognized platforms for transacting Bitcoin. Founded in 2017, Binance has grown to be one of the leaders in Bitcoin exchanges and trading providing customers with the needed platform for their Bitcoin transaction needs.

With access to a large variety of cryptocurrencies, the Binance platform possesses one of the low transaction and trading fees, making it for its users to leverage within their means.

2. Coinbase

Coinbase, as a Bitcoin platform, is known to be the best for beginners in Bitcoin. This platform is because its interface makes it user-friendly, many prefer their day-to-day Bitcoin activities. In addition, the platform features a large number of Bitcoin trading pairs that ensure variety.

3. Gemini

Gemini is a Bitcoin trading platform that focuses on securing crypto assets. Developers made Gemini available with advanced crypto traders in mind. Giving them the necessary security to ensure their investments are kept secure. This Bitcoin platform hosts over a hundred crypto tokens.

4. Crypto.com

Crypto.com is a Bitcoin platform that has grown to be one of the worlds leading Bitcoin platforms. With its launch in 2016, the platform has shown promise with its adaptation to new technologies and ecosystems. Its availability is worldwide and over 90 countries, supporting over 200 cryptocurrencies.

5. eToro

Developed in 2018, the innovation eToro has brought into the world of crypto is a welcome development. The platform is known for giving users the choice of storage for their Bitcoin assets, either Hot or cold. Although the platform is known to host fewer cryptocurrencies than the others in this mix, it ensures the safety and security of crypto assets.

Notable Benefits of Bitcoin

Since cryptocurrencys general acceptance in most parts of the world, we must explore the benefits of its use owing to the recent developments and adoption of digital currency.

1. Decentralization

This factor is one of the most important and beneficial features of Bitcoin. The ability to be decentralized makes it a currency free of monopoly and authority. Moreover, its transparency speaks for itself with an online register that records and accounts for transactions on the network.

2. Security

A lot of difficulties are encountered by hackers when they try to hack and steal Bitcoin. They need help with this due to the security method employed and the cryptography method used. The multilayered security system is highly secure and impenetrable, making the decentralized system safe for transactions.

3. Faster and Borderless Transactions

Unlike the many protocols to be observed and the excessive time taken to confirm and make transactions using traditional banking systems, Bitcoin eliminates these extreme protocols, especially in international commerce. It significantly reduces this time to a matter of seconds to minutes. For this reason, it is a more efficient method for the fast and borderless movement of money.

4. Lower Fees

The cost-effective nature of Bitcoin makes it an effective alternative to the traditional banking system. Little to no fees are needed for transaction processing, especially when you initiate a cross-border transaction. This option makes it a tax-free alternative for transactions.

5. Anonymity

With the anonymity Bitcoin provides, your personal information is kept safe. Moreover, Bitcoin prides itself on providing a private ecosystem for transactions to be carried out, making everyone on the system a professional.


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