Type of Cryptocurrency every cryptocurrency falls into a new type of cryptocurrency category. Cryptocurrency has become most popular specially new generation in recent years, with various types of digital currencies or virtual currencies . Now let us learn about new type of crypto categories.
Payments
Payments to make it easier, a revolution has been brought in the cryptocurrency world through some payment medium. Example of medium exchange, Bitcoin is the world’s first digital currency. Which we can often say “world’s first decentralized p2p digital money” .
Mostly interested 2 features with digital payments –
- No central authorized.
- Fast p2p transcations worldwide with low processing fees.
DeFi – Decentralized Finance
DeFi, in its full form, is Decentralized Finance. Which is also known as DeFi in the digital world.
Digital financial industry that aims to create a Decentralized Ecosystem of financial applications and services based on blockchain technology.
DeFi runs on smart contracts and decentralized protocols. DeFi wants to people want to accept new smart contract technology. DeFi want to forget traditional mediums like banks and brokers.
People want to give a new experience, however through this you can do things like trading, investing, lending etc with security and without any third party.
DeFi runs on smart contracts and decentralized protocols. DeFi wants to people must be know and accept new smart contract technology. DeFi want to forget traditional mediums like banks and brokers. People want to give a new experience, however through this you can do things like trading, investing, lending etc with security and without any third party.
Layer – 1 Blockchain
Layer 1 blockchains are the underlying blockchains on which decentralized networks and applications are built. Layer 1 blockchains serve as the foundation for running smart contracts and decentralized applications (dApps).
Layer 1 blockchains are designed to provide the fundamental infrastructure for decentralized applications, enabling the secure and trustless transfer of assets and data across a distributed network. Most famous layer 1 cryptocurrency Ethereum (ETH).
Stablecoins
A stablecoin is a type of cryptocurrency that is designed to have a stable value. Stablecoin mostly fiat currencies such as the US dollar. More stable due to their being tied to commodities.
The main target of stablecoins is to reduce the price volatility, making them more predictable and suitable for everyday transactions, as well as for storing value without the risk of significant price fluctuations.
DePin
DePin full form is Decentralized physical infrastructure networks simply we called DePin .
Centralised Exchanges
A centralised exchange is a marketplace where transactions are facilitated through a central authority or intermediary.
Infrastructure
Crypto infrastructure includes elements such as blockchain nodes, mining equipment, wallets, smart contracts, decentralized applications, consensus algorithms, and network protocols. Also helps enable the functioning and security of cryptocurrency networks.
Interoperability
Interoperability helps different blockchain network and cryptocurrency work together . It helps users to transfer assets different platforms. It also helps more strong ecosystem for decentralized applications and financial transcations.
Metaverse
A virtual digital world where people can connect with digitally . A world build with blockchain technology. People can buy and sell virtual assets and create unique virtual items and many more.
NFT & Gaming
NFT full form Non Fungible Token . Digital asset represents ownership. Each NFT has a separate digital signature, Which can never happen again.
Privacy Assets
Privacy assets are such a crypto category, where in the most important sense, they provide privacy and anonymity to the user. Obfuscate transaction details, wallet balances, and user identities to protect privacy and confidentiality this is a main foucs of digital assets crypto .
Privacy assets crypto often use most advanced cryptographic techniques example ring signatures, zk-SNARKs, or CoinJoin to enhance privacy and security for their users.
Oracles
Oracle provides a special role in blockchain technology . Enables smart contracts to interact with data outside of the blockchain technology. Outside data or exteneral information example real-time events, weather, financial data etc.
Storage and File Sharing
This crypto using cryptographic techniques to securely store and share files user data. Whatever files the user has uploaded, each file is locked through encryption. Whenever the user opens files, user needs a depression key.
Layer – 2 Scaling solutions
Layer-2 scaling solutions can help reduce congestion on the main blockchain technlogy network, lower transaction costs, and increase transaction throughput.
Decentralized Exchange
The world without the need for a central authority or intermediary. Users do not need to deposit their funds onto the exchange, reducing the risk of hacking or theft. Additionally, users retain control of their private keys, ensuring that they have full ownership and custody of their funds at all times.
Meme coin type of crypto
A crypto meme coin mostly populated social media and memes. Memes coins does not has a clear purpose. Memes Coins are mainly issued for an entertainment purpose.
SocialFi
SocialFi means Social Finance. This is a connection between a Social media and Finance. SocialFi involve peer-to-peer lending, crowdfunding, and other financial activities.
Decentralized Content
Information or media that is not stored or controlled by a single central authority or entity. Distributed across a network of nodes or servers, often using blockchain or peer-to-peer technology. Allows resistance to censorship and ownership of decentralized content.
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