Currently there's a new and unique Cryptocurrency payment that entered in the cryptocurrencies universe.
For the last few weeks, I have discussed in my articles about DeFi or also known as Decentralised Finance, Major Cryptocurrency in the market and Altcoins or also known as Alternative to Bitcoin like Bitcoin Cash, Ethereum, Ripple and many more cryptocurrencies in the crtpto universe.
DeFi is a short term for " decentralized finance " an terminology umbrella for a variety of financial applications in blockchain or cryptocurrency geared towards disrupting and manipulative intermediaries.
DeFi was made through the inspiration from blockchain, the technology used in the digital cryptocurrency Bitcoin. Decentralized Financial Transactions which allows several entities to hold a copy of the history of transactions. It means it is not controlled by a single, or central source.
The idea and concepts of DeFi is somehow important because centralized systems and human controlled gatekeepers can limit the speed and safety of transactions while offering to it's users less direct control over their money. It is distinct in the way that, it expands the use of blockchain from simple value transfer to more complex financial use cases.
Cryptocurrency like Bitcoin Cash, Bitcoin and other digital traditional assets stand out from the legacy of digital payment methods, such as those owned and run by Visa and PayPal. In that way, they remove all Middlemen from transactions.
When you pay with your cards for coffee and other goods, a financial institutions or intermediary between you and the business, with control over the transaction, retaining the authority to stop and record the transaction in private ledger. With decentralized transaction like Bitcoin and Bitcoin Cash, those institutions are cut out of the picture.
Purchased directly, are not the only transaction or contract that was overseen by companies, financial institutions such as loan insurance and others. Cutting out middle men from all kinds of transactions is one of the primary advantage of DeFi.
Over the last decade, the definition of payments has drastically changed, with the good old currency notes taking the back seat as more and more people flock towards electronic payments. However, electronic payment methods weren’t perfect either as financial institutions slapped high processing fees for such transactions, not to mention the delays one continues to face when it comes to traditional wire transfers. These factors led to increased adoption of cryptocurrencies like Bitcoin which didn’t need intermediaries and peer-to-peer transactions were almost instant.
But for the last 2 years, there's a new and fresh challenge to it's dominance to its strong market.
Lately, Altcoins are gaining ground and momentum against their bigger cousins. For the past 2 years altcoins attract and gathered users, communities and developers who are confident altcoins have much more potential.
The term "altcoins" refers to all cryptocurrencies other than Bitcoin.
Some of the main types of altcoins include mining-based cryptocurrencies, stablecoins, security tokens, and utility tokens.
Altcoins might include only mining-based cryptocurrencies other than Bitcoin in the future as usage continues to develop with technology.
Ethereum and Ripple were the largest altcoins by market capitalization in February 2020.
What Are Altcoins?
Altcoins are the other cryptocurrencies launched after the success of Bitcoin . Generally, they sell themselves as better alternatives to Bitcoin. The term "altcoins" refers to all cryptocurrencies other than Bitcoin. As of early 2020, there were more than 5,000 cryptocurrencies by some estimates. According to CoinMarketCap, altcoins accounted for over 34% of the total cryptocurrency market in February 2020.(Source Credit: investopedia.com)
Mostly of the altcoins in the market are built in the basic framework provided and used by Bitcoin. We noticed that most of the altcoins are peer to peer. Their main goal and maming it their advantage was offering efficient and inexpensive ways to carry out transactions virtually. Even having them with similar and overlapping features and framework, each altcoins vaey widely from each other.