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Expectations from a perfect cryptocurrency

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Written by   56
4 days ago

Cryptocurrencies are going to be the future when it comes to blogging, finance, gaming, etc. There are so many use cases that are slowly getting into the crypto world. The coins that people have been purchasing in the last decade are slowly starting to gain some proper use cases. Some coins have a solid use case and some coins like Bitcoin are just pride coins and the day-to-day transactions and need for transactions is very limited. There are also chains that are highly used and their transactions are very high. Those are some of the chains that have a better use case. But it doesn't mean that a high number of transactions makes a good cryptocurrency. Read further to understand what makes it a perfect cryptocurrency.

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Security

Most of the cryptocurrencies are backed by blockchain technology. There are still a few cryptocurrencies that are not blockchain-based. There is a big amount of centralization involved in those cryptocurrencies. Those are some of the cryptocurrencies that can be of little risk. Security is a major thing when it comes to cryptocurrencies. Especially if financial transactions are involved, anyone would expect it to be highly secure. There are so many top cryptocurrencies that are tamper-proof. The decentralized nature of most of the coins gives way to more security. That makes it a perfect cryptocurrency.

Decentralization

Next to security comes decentralization. Without decentralization, there is always a single point of failure. If a coin is governed by just one person or just a group of people, there is a high possibility that the project might fail someday leaving the investors in trouble. In an unfortunate circumstance like losing keys are the death of the project leader would cause great trouble. That is why most cryptocurrencies have decentralization as one of the key factors. With decentralization, these cryptocurrencies will be able to survive even for centuries even when we are gone in the next century. Decentralization is thus an important phenomenon for a perfect cryptocurrency.

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Transaction speed

Today transaction speed is very important. It takes a few hours if someone is sending a Bitcoin to another person. We all know it was the first-ever coin to be created in the crypto world. But with this fact, it is definitely not okay to use Bitcoin for all your needs. In some cases, we will need a good transaction speed. We cannot sit and wait for hours together to verify a transaction in this fast-moving world. Many cryptocurrencies that came after Bitcoin have solved this problem. There are blockchains where the transaction speed is only a few seconds or even less than a second in some cases.

Low or no transaction fees

Next to the transaction speed comes the transaction fees. People expect to do transactions between the wallets with a very minimal cost. Today we know that Ethereum is one of the biggest blockchains out there. But the biggest problem that it has is the high transaction cost. At times if you want to send a 50$ worth of a coin to someone else, you have to spend 45$ in transaction fees. This makes the chain worthless for microtransactions. People also hesitate to build dApps on top of it. Many blockchains have emerged trying to solve this problem. Blockchains like Hive also went to the next level and gives free transactions. Anyone who would like to transact on Hive blockchain can do it for free. A small RC cost will be involved but it is not a big deal and that will also recover back.

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Exchange listing and market volume

Exchange listing and the market volume is very important. The reason is that people should be able to trade a coin from multiple places and this will only make the price of the coin look consistent. It is also very important that transfers from one exchange wallet to another exchange wallet should also be seamless and at the same time, it should also be cheap. There are some coins that are very costly especially when it comes to transfers from one exchange to another. The main reason is that both exchange fees, as well as on-chain fees, gets involved. Hive is cheap in terms of that too.



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Written by   56
4 days ago
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