Cryptocurrencies in simple terms are digital currencies, decentralized and not controlled by any government body or law of a country. The first introduction of a digital currency dates to the 1980s when it was still a new concept and not known to a majority. It was only until 2006 when people started realizing the strength of cyber currencies with the invention of bitcoin.
There is a close comparison done between Crypto and Barter systems however there is a clear difference, barter units are large and unbreakable and crypto units are finer and breakable.
The bigger question is, how does Crypto work? Crypto currencies work through peer-to-peer networks called Blockchains. In simpler terms, two people buying and selling cryptocurrencies must be a part of the same nexus unlike physical money or identified currencies that are exchangeable or converted as per requirement. To be a substantial part of a crypto network, one needs to abide by terms and conditions and after clearing the first checkpoint can start investing into currencies.
The New Horizon for Cryptocurrencies
Cryptocurrencies started with a negative outlook as there were discussions about risk factors, loss of money and unreliability. Most countries also categorized cryptocurrencies as illegal due to its trading across borders (Not one country can impose a law on any crypto because of its global presence). With the increasing demand in cryptocurrencies, companies have now started to deliver cryptocurrency courses online for enthusiasts who wish to deep-dive into the intricacies of crypto and blockchain.
Cryptocurrencies are gaining popularity with increasing awareness globally, which is leading to a race between existing and new currencies. Some of the currencies are ahead in the game and are exhibiting robust growth potentials in the future.
Cryptocurrencies that are making way into the future
The ten cryptocurrencies that are leading into the future with remarkable offers and a positive ground for investors are:
The oldest and the most prominent of the cryptocurrency wagon is Bitcoin. Launched in 2009, by Satoshi Nakamoto (a pseudonym used to launch the currency). It is known as the original cryptocurrency for its forward-looking persona for the newer generation. It has now become a household name with at least one out of ten investing into Bitcoin. Bitcoin works with the same blockchain networks. It has a crypto puzzle in place which acts as a gatekeeper for those who wish to join the blockchain. In 2022, Bitcoin’s worth increased by 7800% globally, making it one of the most robust currencies.
- Tether (USDT)
Tether is a stablecoin unlike most cryptocurrencies. This means Tether has a financial backing and equivalence to currencies like USD and Euro. This makes it more identifiable and easier to associate crypto currency. Launched by Tether limited in 2014, Tether currency is owned by a Hong-Kong based company named Bitfinex Cryptocurrency Exchange.
- Ethereum (ETH)
Ethereum is both a cryptocurrency and a blockchain platform. Ethereum was founded in 2013 by programmer Vitalik Buterin and co-founded by Gavin Wood, Charles Hoskinson, Anthony Di Iorio and Joseph Lubin. Ethereum allows individuals to deploy permanent or temporary decentralized applications and lets the creators interact through this open source. Through these applications users can exchange or lend financial services without any financial intermediaries like banks, brokerages, or exchanges. It also allows users to exchange NFTs (Non-Fungible token) with any owned and identified asset or privilege.
- Binance Coin (BNB)
Binance Coin under Binance was launched in July 2017 as an Ethereum token and later rebranded to Binance Coin or BNB. It can be used to trade or pay fees on Binance, which is one of the largest crypto exchanges in the world.
Since its genesis BNB has moved beyond just trading on Binance. It can now be traded or exchanged into other forms of cryptocurrencies, such as Bitcoin and Ethereum.
Many people confuse Ripple and XRP. XRP is a cryptocurrency developed by Ripple. Whereas Ripple is a global payments network with major banks and financial service providers. XRP is used for Ripple products to ensure quick conversions between one or more cryptocurrencies. By March 2022, XRP witnessed a 12600 % jump from its initial value.
- Terra (Luna)
Terra is a blockchain payment platform for stablecoins that are reliant on a balance between two cryptocurrencies. In the Terra universe, Terra USD carries a USD value and Luna acts as the crypto exchange coin. Whenever a corresponding fixed value of stable coin increases, users are allowed to burn their Lunas on Terra blockchain to add the gapping USD value to that of the stablecoin. Similarly, when the value depreciates, it encourages users to burn their Terra to increase their Luna. For both processes, users are incentivized to maintain the balance between stablecoins and cryptocurrencies.
- Cardano (ADA)
Cardano is a public, open-source and decentralized blockchain. Founded by the co-founder of Ethereum, Charles Hoskinson in 2015, Cardano claims to target common cryptocurrency issues such as, the inflexibility of Bitcoin or the safety and scalability issue of Ethereum. On Cardano, one can do peer-to-peer transactions using the internal cryptocurrency named ADA.
The Ministry of Education, Georgia signed a memorandum of understanding with the free university of Tbilisi to use Cardano as one of the platforms to build a credential verification system for Georgia.
- Solana (SOL)
A blockchain platform with smart contract functionality, Solana’s native cryptocurrency is SOL.
Solana uses a unique proof-of-stake and proof-of-history mechanism that allows transactions to happen swiftly and securely. SOL alone powers the Solana platform. Proof of history allows the network participants the certainty that an event took place at a given time and all transactions with regard to this event can be securely processed.
Billy Markus and Jackson Palmer, the creators of Dogecoin, created the currency as a joke – a response to the then unpopular concept of cryptocurrency. Dogecoin for its unconventional foundation, is most often referred to as the first ‘meme cryptocurrency’ and most specifically, the first ‘dog currency’.
To hold its ‘joke-like’ persona, Dogecoin has the popular meme dog, Shiba Inu as its logo and namesake. Dogecoin, despite its not-so-serious persona, is considered to be a good doorway of investment by some. After its introduction on December 6, 2013, Dogecoin gained popularity amongst its community and increased its market size to 85 Bn USD by May 5, 2021. It is also currently sponsoring the shirts of Watford Football Club.
Dogecoin has been in news recently for an exponentially growing 2 X times over the past 30 days itself.
- Binance USD
Binance USD or BUSD is a stablecoin dominated by USD and approved by New York State Department of Financial Services (NYDFS) which has been launched as a collaboration between Paxos and Binance. The stability of BUSD is optimal as it is 100% backed by reserves held by either dedicated fiat cash insured at US banks or US Treasury bills. ‘
Why should you know more about cryptocurrencies and blockchains?
With the increasing popularity of cryptocurrencies, it is advisable for individuals with keen interest in the financial segment to upskill in order to stay updated with what can come next. There are many new cryptocurrency courses and blockchain courses that focus on building knowledge on every existing cryptocurrency and blockchain, their psychology and what it will be in the future. These cryptocurrency courses ensure that learners also understand the extent at which cryptocurrencies will make an impact in the economical status quo of a currency. Training on cryptocurrency is now done even at school level. This helps students with an inclination towards finance to gather knowledge and scope into cryptocurrency. Cryptocurrency courses also help investors to analyze and invest as per their understanding of what cryptocurrency will fetch them good returns when invested in.
What is the future of Cryptocurrency and Blockchain in India?
In India, blockchain technology started getting recognition from the very onset of it globally. However, it is now seen to be moving towards a stable future in India with an initial and steady recognition of certain cryptocurrencies by the government of India. Many sectors and departments are now incorporating blockchain technology for better flow of events and processes. some of the examples are as below:
The Telecom Sector – In India TRAI (Telecom Regulation Authority of India), has now advised its departments to incorporate blockchain technology in order to track spam channels and illegal or unauthorized telecom operators.
The Tea Board of India – The TBI has decided to incorporate blockchain technology to keep a track of the vast supply chain of tea in India. The department has been facing long-standing issues with tea due to adulteration and degradation. Blockchain technology is said to help mitigate the issue at the very core by keeping records at every step and maintaining a history ledger.
Securities and Exchange Board of India (SEBI) – SEBI has advised all its depositories to use blockchain technology in various processes across departments. This is advised in order to keep records of various actions done within SEBI and maintain transparency for creation and maintenance of securities.