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Bitcoin and its Use Cases
Bicoin’s unknown developer(s) Satoshi Nakamoto, created Bitcoin as a financial asset to compete with fiat currencies. At first, Bitcoin was used to purchase low-cost assets till its price hiked and fees became unbearable for cryptocurrency users. This was the onset of Bitcoin cash (BCH).
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BCH was created to cater to the low-value costs that Bitcoin had superseded. The existence of these tokens on the bitcoin network gives room for the creation of programmable money. The BTC blockchain provides users with a value store that does not depend on any local bank. This allows transactions to be free from being monitored by traditional regulatory authorities, much like other cryptocurrencies.
Furthermore, Bitcoin miners use it to determine certain changes in governing protocol. They do this by attaching the initials of the protocol change to new blocks. This is known as on-chain voting and can be used to ensure that voters’ turnout.
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Ethereum and its Use Cases
Ehereum worked on the Bitcoin developers’ desire for true decentralization and is now used for various decentralized web applications. The types of applications vary from games to browsers and even finance applications. Ethereum also created a standard for the establishment of new tokens. This standard is known as ERC-20. Ethereum has self-facilitating smart contracts that can run transactions on the blockchain.
Ethereum’s blockchain’s complete independence from central authorities allows developers to create and execute web applications without the need for permission. This has allowed the creation of Non-Fungible Tokens, decentralized autonomous organizations, and tokens.
DASH and Its Use Cases
The DASH network can be used to perform untraceable transactions with PrivateSend. The network also allows users that own up to 1000 DASH to become a MasterNode which makes it possible for them to earn a percentage of tokens with the addition of a new block.
DASH coin transactions have no history or traceability which makes them fungible tokens, unlike Bitcoin.The most practical use cases of DASH are seen when new blocks are added. A small percentage of the new tokens are collected by DASH to fund the advancement of the cryptocurrency.
IOTA Use Cases
The use cases of IOTA are associated with machines that use sensors for their input. IOTA makes transactions easier to process without transaction fees. In 2019, IOTA became one of the world’s most traded cryptocurrencies with a valuation of just over $11 billion.
Cardano (ADA) Use Cases
Cardano’s use case is similar to Ethereum’s DApps. It allows developers to create secure applications that can be powered by it. It is also used primarily for financial transactions. Another use for Cardano is to create Smart contracts which allow it to develop decentralized protocols and applications.
Conclusion
Cryptocurrency use cases are vast and have unlimited potential to grow. Apart from coins with strictly financial applications (like Litecoin), crypto assets come with other beneficial uses that can help the coins and tokens on a blockchain to spike exponentially. You can check the link above for more details about cryptocurrency assets.
Ripple (XRP) Use Cases
Ripple (XRP) is a cryptocurrency with a payment protocol that has been designed to offer fast and relatively cheap global transactions. It was launched in 2012, and since then, Ripple has made some major partnerships with banks across the globe. The digital asset is currently the third-largest cryptocurrency by market capitalization.
One of the primary use cases of Ripple (XRP) is cross-border payments. Traditionally, international money transfers have taken several days or even weeks to complete due to intermediaries involved in transferring funds between different banks and currencies. But with Ripple’s technology, transactions can be completed within seconds at minimal costs compared to traditional methods.
Another significant advantage offered by XRP is its ability to provide liquidity on demand for financial institutions using xRapid • one of its products developed for banking purposes • which enables instant conversion between different currencies without any intermediary party or currency risk exposure.
Furthermore, XRP can also act as a bridge currency for other cryptocurrencies such as Bitcoin and Ethereum through its decentralized exchange platform known as DEX.
Monero (XMR) Use Cases
Monero (XMR) is a privacy-focused cryptocurrency that was launched in 2014. It aims to provide users with complete anonymity and security by masking transaction details, sender addresses, and receiver addresses. This makes it difficult for third parties to trace the flow of transactions on Monero’s blockchain, thus ensuring user privacy.
One of the primary use cases of Monero (XMR) is its use as a means of private transactions. Unlike other cryptocurrencies like Bitcoin, which rely on pseudonymous or public transactions with transparent transaction data visible on the blockchain, Monero uses Ring Confidential Transactions (‘RingCT’) technology that obscures both the amount sent in each transfer and who sent or received it. As such, XMR has become popular among people looking for enhanced privacy when making online payments.
Another significant advantage offered by XMR is its ability to be mined using standard CPUs and GPUs with low power consumption requirements. This makes mining accessible even to individuals without expensive specialized hardware previously required for other cryptocurrencies like Bitcoin.
In addition to private transactions and mining capabilities, Monero (XMR) can also serve as an alternative store-of-value asset for those seeking assets not tied directly to fiat currencies or traditional financial institutions’ performance.