While Bitcoin is the most popular crypto, it does have some good alternatives you can check out. Today, we will do just that and discuss six Bitcoin alternatives.
If you have missed out on the initial boom in cryptocurrency, let us provide a brief primer on some of the projects that are paving the way for what’s to come.
Cardano is one of the most recent and exciting additions to this field. But before we dive into its mechanics and vision, it is vital to understand what it is.
Cardano is an open-source project designed to be safer, faster, and more scalable than Bitcoin or Ethereum. Its three key features include smart contracts, true decentralization (atomic swaps between ADA coins), and fast transactions.
Ethereum is a decentralized open-source blockchain network that allows users to build and deploy decentralized applications. It is the second-largest cryptocurrency by market capitalization after Bitcoin. Its main innovation was introducing the concept of smart contracts, which allow developers to create self-executing code on the Ethereum blockchain ledger.
That allows Ethereum to be used in ways that were never possible before, like creating stock markets without the need for third-party brokers or making automated payments based on real-world events.
Ethereum 2.0 is a new version of the Ethereum network that is designed to improve scalability and security features, including reducing transaction fees from $5 to less than one cent per transaction. This update will also bring improvements such as sharding. It is a process where data is split into smaller chunks so it can be processed faster and more efficiently. The improved proof of stake consensus algorithm makes it harder for attackers to gain control over 51% or more nodes within an ecosystem.
With Bitcoin being the most well-known cryptocurrency, there have been many smaller cryptocurrencies that have tried to compete with it. Some of these are designed to be an alternative to Bitcoin, while others are attempting to solve a specific problem that Bitcoin can’t.
What is DOT?
Polkadot (DOT) is one such altcoin, aiming to provide an interoperable and scalable blockchain platform where users can build and connect decentralized applications (dApps) in a purpose-built environment. It was launched in 2017 by Gavin Wood, co-founder of Ethereum, along with Dr. Jutta Steinerand Peter Czaban.
What makes Polkadot different from other digital currencies?
Polkadot is a decentralized network that aims to combine multiple blockchains into one system, which operates as an ‘Internet of Blockchains.’ This means users will be able to transfer assets across multiple blockchains – including Bitcoin and Ethereum – without any additional work required by the developers building applications on the network.
You probably have more questions like why you should buy DOT or how to buy DOT. This post on how to buy Polkadot will answer all your queries.
Chainlink is a decentralized oracle network that allows users to collect data and information from off-chain sources. It was developed in 2017 by Sergey Nazarov, a former TechCrunch founder. Chainlink has a market cap of $9.8 billion and a circulating supply of 350 million coins, with LINK as its currency ticker.
You can purchase 1 LINK for $28.17 on Binance with ETH or USDT trading pairs available.
Litecoin is probably one of the most popular Bitcoin alternatives. It is a peer-to-peer cryptocurrency based on blockchain technology.
Charlie Lee said he created Litecoin to have a faster block creation rate than Bitcoin. A transaction that is completed on the Litecoin network can be processed approximately four times faster than on the Bitcoin network.
Litecoin also has a higher market cap and smaller block size compared to Bitcoin. The value of one unit of Litecoin is currently valued at $200, while one unit of Bitcoin ranges around $6,000.
#6 Stellar Lumens
Stellar Lumens (XLM), a platform for sending and exchanging money, is similar to Ripple. Both Stellar and Ripple use a distributed blockchain network, but Stellar was created by Jed McCaleb, who also founded eDonkey and Mt. Gox. In contrast, Ripple’s focus is on banks and other large institutions that need to move money around the world quickly. Stellar aims to help people send payments anywhere around the world in whatever currency they prefer. The system uses an international network of servers that confirm transactions within five seconds.
In terms of price and volume, XLM was performing well in 2017. It nearly tripled its value from January 1st to December 6th, trading at $0.12 per coin. That made XLM the sixth-largest cryptocurrency based on market cap—and it may not be done growing yet, given how much potential this innovative technology has for becoming widely adopted in everyday payments across the globe.
That is all for today. So, check out these Bitcoin alternatives if you are interested in investing in crypto anytime soon.