What is Blockchain?
Blockchain is the technology that supports all cryptocurrencies, and many related products like Non Fungible Tokens (NFTs).
Each cryptocurrency transaction is one by one recorded onto the blockchain by a huge network of participants who verify Blockchain validity by using computer programmes.
The reason to do this for Bitcoin’s network is that the first person to validate transactions is rewarded in Bitcoin or given network digital coin.
The validation of blockchain as a profit-making process which is known as mining. Although mining is also disputed because of the high amount of energy used by miners to be the first to successfully update the blockchain.
Top 10 Cryptocurrency that use Blockchain Technology:
Ethereum
Ethereum is known as the second largest cryptocurrency after Bitcoin.
Ethereum is represented by the Ether token, and the blockchain supports ethereum.
Blockchain supports an array of different applications and digital assets, such as non-fungible tokens.
Exchange-traded funds (ETFs)
Exchange-Traded Funds or ETFs are portfolios that allow investors to bet on multiple assets without having to buy any one themselves.
Exchange-Traded Funds or ETFs are traded on stock exchanges like the share market. Exchange-Traded Funds or ETFs value depends on how the overall portfolio performs in real time in stock exchange.
Exchange-Traded Funds or ETFs can comprise a combination of gold and silver bullion, for example, or a mix of shares in both technology and insurance companies.
A Bitcoin ETF buys the cryptocurrency directly, on the spot, at its current price, throughout the day.
While some Exchange-Traded Funds or ETFs already contained Bitcoin indirectly. The US Government approved several spot Bitcoin ETFs in January 2024.
After US Government approval allowed new investors, such as investment management firms like Blackrock and Fidelity, to enter the speculative world of Bitcoin without having to worry about digital wallets or navigating crypto exchanges.
Stablecoins
‘Stable’ is the key word used for Stablecoins – this cryptocurrency differs from others as it is intended to be less volatile in value.
Stablecoins work by the price being linked to an existing asset, for instance currencies like the US dollar or Pound Sterling, which make Stablecoins more stable in price than cryptocurrencies which are not backed by assets.
Stablecoins are usually controlled by companies that provide them, with transactions recorded on digital ledgers.
While held up by some as the future of finance, high profile price collapses of stablecoins have alerted regulators to risks for investors and prompted scrutiny over their supposed stability.
XRP
XRP is a cryptocurrency used by a platform called the XRP Ledger.
XRP was created by the co-founders of financial services company Ripple Labs in 2012 as a cheaper, faster alternative to Bitcoin.
XRP cryptocurrency has a fixed supply of 100 billion coins, which were created when it launched. Most of the XRP digital coin is held by Ripple and frequently released into circulation in the market.
Not similar to cryptocurrencies such as Bitcoin, XRP transactions made using XRP are validated through consensus – whereby the majority of validators on its peer-to-peer network must agree whether or not a transaction is valid before it is added to its blockchain.
XRP has been credited with allowing many transactions to take place at a time, at high speed and low cost – making it appealing to financial institutions or for processes like cross-border payments.
But as compare to other cryptocurrencies, XRP has received regulatory scrutiny and seen sudden, sharp declines in value in the market.
