Keeping Up With the Cryptocurrency Revolution: Bitcoin and Other Popular Crypto Assets

Cryptocurrency was formerly a niche of little interest to businesses and financial sectors. The cryptocurrency revolution shows blockchain technology and digital currencies’ continued growth and transformative possibilities. It gives businesses the possibilities of machine-to-machine transactions and borderless payments.

Most businesses and major banks now provide cryptocurrency custody solutions and create digital currencies using the technology. Although Bitcoin is the first digital currency created and popularly traded, there are other variations of cryptocurrencies. These cryptocurrencies often have various ways of formulations, use-case, code designs and other factors.

Bitcoin

Bitcoin is the first recognized cryptocurrency worldwide that relies on P2P (peer-to-peer) and cryptography exchange of value digitally through a decentralised platform. It is a cryptocurrency system launched in 2009 by Satoshi Nakamoto. The digital currency uses blockchain, a public transaction ledger updated periodically to achieve global consensus.

The blockchain records all copies of bitcoin transactions on servers worldwide. These servers are also known as a node; anyone can set up a node using a computer. The cryptograph makes it possible to know the coin’s owners, unlike banks, which require a central source of trust.

Bitcoin is a decentralised platform, meaning it does not rely on any centralised platform because of its broad distribution. The design of Bitcoin enables users to exchange value through a P2P network directly. A P2P network allows the users to have equal power and direct connection to one another without a central or middle server.

The peer-to-peer network also allows data to be stored and shared seamlessly between the users. One of the easiest ways to understand Bitcoin and its revolution over the years is to think of it as digital money. It is a globally accepted and traded financial asset with a daily volume of tens of billions of dollars.

All Bitcoin transactions are broadcast and shared node to node and publicly to the network. Due to its global recognition and wide acceptance, it is becoming legal in some economies. El Salvador is the first country to mandate Bitcoin as a legal tender for transacting value. Bitcoin is not stable and will keep evolving and integrating changes.

Bitcoin Wallet

There is also a Bitcoin wallet which is a software program required to receive, secure, and send bitcoin. It runs on a device or a computer; however, Bitcoin is not stored in a wallet. The wallet helps to secure the cryptographic keys required to access an amount of Bitcoin. These keys serve as a specialised password that proves the ownership of an amount of bitcoin on the network.

Bitcoin uses PKC (Public-Key Cryptography) to secure transactions on the blockchain. The PKC only enables individuals with the right keys to access a specific amount of bitcoins. Individuals must own two types of keys (public and private keys) to execute bitcoin transactions. These keys help to encrypt and sign bitcoin transactions.

Use Case of Bitcoin

Some years ago, cryptocurrencies were not considered legitimate economic assets. Most economic sectors considered it to be a rebellion against global banking. Bitcoin was mostly considered to be for short-term use of speculative trades. However, Bitcoin has shown great resilience and is now part of the global economic system.

The following are some of the use cases of bitcoin:

• Gaming Industry: Some years ago, you had to purchase a newly released game at the CD store physically. Now, you can buy and download your favourite games online and plan a safe and fun gambling getaway in the UK using Bitcoin.The use of blockchain technology is now global, and this development is also reflected in the gaming industry.
• Trading: Bitcoin is a speculative asset mostly used for investing and trading. The global trading volume of Bitcoin is over $300 billion daily. Although retail traders initially dominated Bitcoin trading, professional investors are now in the market. Bitcoin is also a viable asset for institutional traders. Cryptocurrency trading platforms such as Binance provide good liquidity.
• Gambling: Bitcoin is one of the factors for the tremendous growth in the online gambling industry. The advance in technology has led to an increase in online casinos. Several factors, such as alternative payment options and easy access, increased the interest of the public in an online casino. Bitcoin allows users to make anonymous payments at an online casino. It ensures their privacy and ability to play their favourite games from their comfort zone.
• Purchasing Products and Services: Bitcoin is an advanced technology that enables people to purchase their goods and services worldwide. You can also purchase these products anonymously without leaving your comfort zone. Some other use cases of Bitcoin are in real estate, donations, and trading art and collectibles.

Ethereum (ETH)

Ethereum is a decentralised and open-source blockchain network. The Ether token powers the cryptocurrency and enables the users to make transactions. These users can also stake their coins, earn interest on their holdings, play games, and store non-fungible tokens (NFTs). Vitalik Buterin co-created Ethereum to answer or cater to Bitcoin’s shortcomings.

The network is available globally on various computers because the users serve as the “nodes”. These nodes make the Ethereum network a decentralised platform immune to attacks. One of the best achievements of the network is Decentralised finance. DApps is growing in popularity daily and brings awareness to the Ethereum platform.

Apart from the anonymity and decentralisation features of Ethereum, there are other benefits and advantages of the cryptocurrency. Ethereum provides a lack of censorship to its users. Users can express themselves and their viewpoints on an Ethereum-based social media platform.

Obtaining or acquiring Ether is easy because it is available on various cryptocurrency trading platforms. There is a community requirement that prevents a single individual from making a significant change. It is safer than a simple server and cannot be broken into. Some companies, such as Paypal, support the purchase of crypto with fiat currency.

Tether (USDT)

This cryptocurrency operates on a blockchain platform that facilitates fiat currency usage in a digital form. It enables cross-border transactions across the blockchain. Tether allows its users to transact with their traditional currencies without the complexity associated with a digital currency.

Tether is a widely accepted stablecoin and a pioneer in the digital use of traditional currencies. It is a token that empowers and supports the growing innovation in the blockchain space. Tether token exists on multiple blockchains as a digital token. The pegging of the tether is at 1-to-1 with a fiat currency, all backed by the tether’s reserves.

The Tether token is the first and one of the most traded tokens. It is a widely adopted and accepted token across major exchanges such as Binance. The token offers exceptional liquidity allowing individuals or traders to take advantage of arbitrage. Also, tether allows consumers to purchase services and products easily.

The Tether platform was initially created to use the Bitcoin network as a transport protocol. Most individuals have some concerns about remittances when making an international transaction. This is because remittances constitute a larger percentage of the total payment. Tether is often used for remittances by workers globally.

Cardano (ADA)

Cardano is a blockchain technology with the tools to create possibilities for various individuals and bring about positive global change. It is a proof-of-shake blockchain platform founded on peer-reviewed research. ADA provides sustainability to decentralised applications and societies by combining pioneering technologies.

ADA helps to redistribute power to the margins from unaccountable structures for progress and positive change. It accommodates global systems and secures the data of billions of individuals. The following are some of the benefits of Cardano:

• System Design: ADA is written in a secure, functional programming language called Haskell. It encourages the building of a system using pure functions. Haskell enables powerful methods to ensure the correctness of a code, such as running tests in simulation.
• Academic Research: Cardano uses formal methods to achieve a strong guarantee on the system’s core components. These formal methods are proofs, mathematical speculations, and property-based tests.
• Business: ADA creates a functional environment for businesses. It creates a foundation for decentralised global finance to develop several DApps. These DApps can operate using domain-specific smart contracts.
• Security: The proof-of-stake protocol of Cardano is Ouroboros. It establishes a strict security guarantee with several peer-reviewed papers in top publications in cryptography and cybersecurity areas.
• Decentralisation: ADA is a decentralisation platform maintained by over 2,500 distributed stake pools operated by the community. All transactions require validation by the network participants without any centralised authority.

Cardano focuses on some core concepts such as:

Core Concepts	Definition
Interoperability	Cardano enables a smooth and multi-functional environment for commercial and financial business operations. It enables users to interact with multiple currencies.
Sustainability	ADA-designed proof-of-stake blockchain ensures that the system is self-sustainable. It drives maturity and growth in a good decentralised manner.
Scalability	The Cardano network can process more transactions as the user demand increases.

Conclusion

Years ago, various businesses and economic sectors considered Bitcoin a rebellion against global banking. Bitcoin and other cryptocurrency assets have come a long way and thrived. It is now widely adopted and accepted by various countries. Bitcoin uses a decentralised platform to enable its users to perform seamless and secure transactions.

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