Cryptocurrencies may be electronically stored, transferred, and exchanged. They are digital currencies. However, they are not regarded as currencies in the conventional sense in the majority of countries. People can also market cryptocurrencies. Because of the potential of blockchain technology, a wide range of use cases other than traditional financial transactions is developing as the number of applications grows.
What are the use cases of cryptocurrencies?
Bitcoin:
- Cryptographers and inventors have attempted to build local money for online transactions since the internet’s inception. The bitcoin white paper first appeared during the 2008 financial crisis. It synthesized advances in cryptography and distributed systems to provide a revolutionary solution.
- Bitcoin is completely decentralized in nature and anonymous. People can trace no transactions, and anyone can transact from any part of the world. As it is not regulated, it supports peer-to-peer transactions too.
- Bitcoin is a technology and software development effort that is open source. Bitcoin has a predetermined supply timetable, and by November 2020, 85 percent of all bitcoins will have got mine. This is why some refer to bitcoin as “digital gold.”
Ethereum:
- Ethereum is a worldwide, open-source network and platform enabling the development of new sorts of applications. Ethereum is characterized as a “smart contract platform,” allowing applications to program currency movement from one address to another based on specific criteria.
- The execution of these programs necessitates the usage of ether. This native cryptocurrency gets used to pay transaction fees and reward computers all over the globe for maintaining and safeguarding the network.
- Ethereum gets powered by ether, its indigenous currency, utilised as “gas” to power the implementation of smart contracts on the network. Decentralised apps may get built using collections of smart contracts.
Ripple:
- Ripple is using blockchain technology to create next-generation financial infrastructure. RippleNet is the most dependable payment network in business now.
- Ripplenet is decentralised and is entirely anonymous.
- Ripple Primary purpose is to enable payments for everyone, everywhere, and in any way possible by utilising blockchain and digital assets. The startup intends to employ XRP to address a $10 trillion problem — imprisoned cash necessary for cross-border payments.
Celo:
- Celo is the first blockchain-based mobile network that can help people do digital banking and payments easily.
- The CELLO coin serves as a utility and governance asset, allowing the community to dictate the platform’s destiny through voting and stake.
- Celo also features a stable-value token family whose values may track any asset. The Cello Dollar (USD) was the first stablecoin to be released, and it follows the value of the US dollar. By voting and staking, the community may influence the platform’s direction.
Litecoin:
- Litecoin attempts to improve bitcoin’s functionality by altering blockchain network characteristics to increase transaction speed and reduce transaction costs.
- Blocks are confirmed every 2.5 minutes, which is four times faster than bitcoin and allows for more transactions to be completed in the same amount of time. Because bitcoin transactions have a higher transaction capacity and a lesser demand than bitcoin transactions, transaction fees are cheap.
- Digital assets serve as a safety net for many people. Because of its high transaction speed and low transaction cost, it has the potential to be an efficient means of cross-border payment.
Conclusion:
Therefore, cryptocurrencies get used for a lot of things. Even though the world around cryptocurrency is slowly increasing, more research needs to get done into it. India gradually understands its significance as it is entering the financial market. It can enhance economic growth like no other, but the country needs to move forward and accept it before that.
