Introduction to the cryptocurrencies in Coinmotion and their use cases
Coinmotion offers a wide selection of various virtual currencies, which we briefly overview in this article. You can navigate through this article using subheadings to access more comprehensive virtual currency-specific introductions published on our website.
Bitcoin (BTC)
Bitcoin is the first and most well-known cryptocurrency, created by the anonymous Satoshi Nakamoto in 2009. It was a milestone in the digital currency world by introducing blockchain technology and decentralized ledger.
Bitcoin primarily functions as a digital currency and store of value. Many consider it as digital gold, and it is a popular long-term investment option.
The maximum supply of Bitcoin is limited to 21 million coins. This limitation makes Bitcoin a deflationary currency, meaning that its value may increase over time as the supply decreases.
The operation and security of the Bitcoin system are ensured by a large amount of decentralized computing power around the world. Securing the network is called mining, and there are now many companies even in Finland focusing solely on mining Bitcoin.
However, the proof of work (PoW) consensus mechanism used in Bitcoin's mining process requires increasingly more computing power. This has made Bitcoin's energy consumption a controversial topic, but also makes the Bitcoin network a highly secure blockchain.
Ethereum (ETH)
Ethereum was launched in 2015 under the leadership of Vitalik Buterin. The Ethereum network enables the operation of smart contracts and decentralized applications (dApps).
The Ethereum platform provides opportunities for different industries to develop and use decentralized applications. Countless decentralized applications have been built on top of Ethereum, along with new cryptocurrencies related to their operation.
Previously, Ethereum maintenance was based on abundant computing power and mining, similar to Bitcoin, but maintenance was shifted towards a more environmentally friendly direction in 2022. Currently, the operation of Ethereum is secured through decentralized staked assets, and the system's energy consumption for maintenance is only a fraction of what it used to be.
Although Ethereum transaction costs and times may vary depending on network congestion, its potential and application in various fields make it a significant player in the cryptocurrency space.
Litecoin (LTC)
Litecoin was created in 2011 by Charlie Lee. It is technically very similar to Bitcoin but has shorter transaction times.
Litecoin is designed for faster and cheaper transactions than Bitcoin and is better suitable for everyday purchases and transactions.
Litecoin's block generation time is approximately 2.5 minutes, which is four times faster than Bitcoin. Its maximum supply is 84 million coins.
Ripple (XRP)
Ripple was launched in 2012 to facilitate real-time global payments.
XRP is used in payment systems to speed up and improve international money transfers. Ripple collaborates with many banks and financial institutions.
Transaction times on the Ripple network are incredibly fast, and transaction fees are minimal, making it an attractive alternative to traditional money transfers.
Cardano (ADA)
Cardano was founded in 2017 by Charles Hoskinson. It aims to provide a secure and scalable platform for performing smart contracts.
Cardano focuses on developing decentralized applications and offers scientifically backed approaches to blockchain development.
Cardano uses a Proof of Stake (PoS) consensus mechanism, and its development is guided by academic research and peer review.
Polygon (MATIC)
Polygon was launched in 2017 under the name Matic Network. It was developed to improve Ethereum blockchain scalability and usability.
Polygon provides solutions to Ethereum's scalability issues, enabling faster and cheaper transactions.
Polygon supports multi-chain architecture and offers a platform for interoperability between multiple blockchains, enhancing the scalability and performance of decentralized applications.
Tether (USDT)
Tether was created in 2014 to combine the flexibility of cryptocurrencies with the stability of traditional currencies.
USDT is a stablecoin tied to the US dollar. It provides a safe harbor from the volatility of cryptocurrency markets.
Tether's value is pegged 1:1 to the US dollar, and its supply is regularly updated to match market demand.
USD Coin (USDC)
USDC was launched in 2018 as a collaboration between Circle and Coinbase. The goal is to offer a transparent and regulated stablecoin.
USDC is also pegged to the US dollar and is used as a stable means of payment and a trading pair in cryptocurrency exchanges.
USDC is fully regulated and transparent, with reserves audited regularly by third parties.
Uniswap (UNI)
Uniswap was launched in 2018 and is one of the most popular decentralized exchanges (DEX).
The UNI token is used within the Uniswap exchange for trading and liquidity management.
Uniswap operates on the automated market maker (AMM) principle, allowing users to trade tokens directly without intermediaries.
Stellar Lumens (XLM)
Stellar was established in 2014 by Jed McCaleb, who was also a co-founder of the Ripple project. Stellar is designed to facilitate fast and cheap cross-border payments.
The XLM token is used within the Stellar network for transaction fees and liquidity management. Stellar collaborates with various financial institutions to improve money transfer efficiency, especially in developing markets.
Stellar enables fast and cheap money transfers, with its consensus protocol allowing transaction confirmation in seconds.
Aave (AAVE)
Aave was launched in 2017 by Stani Kulechov, originally under the name ETHLend. The project was rebranded to Aave in 2020.
Aave is a decentralized finance protocol that allows for the borrowing and lending of assets without a central intermediary. The AAVE token is used for governance and risk management within the protocol.
Aave supports flash loans, which enable the borrowing and repayment of loans within the same transaction without collateral.
Chainlink (LINK)
Chainlink was launched in 2017, led by Sergey Nazarov. The project aims to connect smart contracts to external data sources (oracles) so they can handle more complex tasks.
The LINK token is used as a payment method within the Chainlink network, especially for rewarding data sources and operators for oracle services.
Chainlink enables reliable and secure data transfer from external sources to smart contracts, enhancing their functionality and expanding their use cases.
Polkadot (DOT)*
Polkadot was launched in 2020 by Gavin Wood, a co-founder and former CTO of Ethereum. It focuses on providing a scalable and interoperable blockchain platform. Polkadot aims to enable different blockchains to transfer messages and value in a trust-free fashion, sharing their unique features while pooling their security.
Polkadot uses a unique consensus mechanism called Nominated Proof of Stake (NPoS) and supports parachains, which are custom blockchains that leverage Polkadot's security and interoperability. This makes Polkadot highly scalable while allowing for spontaneous upgrades without the need for hard forks.
Polkadot is designed to facilitate a decentralized internet of blockchains, addressing many issues of scalability, governance, and interoperability found in earlier blockchain platforms.
Solana (SOL)*
Solana was launched in 2020 by Anatoly Yakovenko. It was developed to solve the scalability issues of other blockchains by providing a highly performant network capable of supporting decentralized applications on a massive scale.
Solana uses a unique Proof of History (PoH) consensus mechanism, which allows for extremely high throughput and low transaction costs. The network can process thousands of transactions per second, making it one of the fastest blockchain platforms.
Solana's speed and low fees make it ideal for decentralized finance (DeFi) applications, decentralized exchanges (DEXs), and other high-frequency trading environments.
Avalanche (AVAX)*
Avalanche was launched in 2020 by Ava Labs, led by Emin Gün Sirer. It aims to provide a robust, highly scalable blockchain platform that supports custom blockchain deployments and decentralized applications.
Avalanche employs a novel consensus protocol that allows it to achieve sub-second finality, high throughput, and resistance against 51% attacks. Its architecture supports multiple virtual machines, making it versatile and adaptable for different blockchain uses.
Avalanche is geared towards DeFi, asset issuance, and application-specific blockchains. Its flexibility and performance make it suitable for a wide range of applications.
Dogecoin (DOGE)*
Dogecoin was created in 2013 by Jackson Palmer and Billy Markus. Initially launched as a joke, it quickly gained a large community and has become one of the most recognized cryptocurrencies.
Dogecoin has no supply cap, which differentiates it from many other cryptocurrencies. Its transaction times and fees are lower compared to Bitcoin, making it suitable for small transactions.
Dogecoin is frequently used for tipping online content creators, charitable donations, and microtransactions. Its strong community support has also led to widespread recognition.
Cosmos (ATOM)*
Cosmos was launched in 2019 by the Interchain Foundation. It aims to create an "Internet of Blockchains" by enabling interoperability between multiple independent blockchains.
Cosmos uses the Tendermint consensus algorithm, providing fast and secure transactions. The Cosmos SDK (software development kit) allows for customizable, interoperable blockchain development, simplifying the creation of new blockchains.
Cosmos is designed to solve issues of scalability and interoperability, making it suitable for various decentralized applications and blockchain projects looking to communicate seamlessly.
Tron (TRX)*
Tron was founded in 2017 by Justin Sun. It focuses on creating a decentralized internet and enabling decentralized content sharing and entertainment.
Tron uses a Delegated Proof of Stake (DPoS) consensus mechanism, which allows for high throughput and scalability. Tron blockchain supports smart contracts and dApps.
Tron is primarily used in the entertainment industry, facilitating peer-to-peer content sharing. It also supports dApps and DeFi projects and is particularly popular in the gaming sector.
Shiba Inu (SHIB)*
Shiba Inu was launched in August 2020 as an experiment in decentralized community building by an anonymous individual known as "Ryoshi". It gained popularity as a "meme coin".
Shiba Inu has a large supply and operates on the Ethereum blockchain, enabling it to leverage Ethereum's ecosystem and DeFi capabilities. It also includes ShibaSwap, a decentralized exchange.
SHIB is primarily used within its community for trading and speculative purposes. It aims to expand its ecosystem through various decentralized projects.
Maker (MKR)*
Maker was developed by the Maker Foundation and is part of the Ethereum blockchain. It aims to enable decentralized credit systems through its stablecoin, DAI.
Maker uses a system of collateralized debt positions (CDPs) to maintain the value of DAI stablecoin. The MKR token is used for governance and risk management within the MakerDAO ecosystem.
MakerDAO allows users to generate DAI stablecoin against cryptocurrency collateral, facilitating decentralized lending and borrowing. MKR token holders participate in governance, making decisions on system policies.
Algorand (ALGO)*
Algorand was founded in 2019 by Silvio Micali, a Turing Award-winning computer scientist. It aims to solve the blockchain trilemma by offering a highly secure, scalable, and decentralized network.
Algorand uses a Pure Proof of Stake (PPoS) consensus mechanism, which ensures fast transaction finality and high throughput. The protocol is designed for low transaction fees and high security.
Algorand is used for various applications, from DeFi to enterprise solutions, due to its efficient and scalable infrastructure. It supports smart contracts and allows for the issuance of assets.
Quant (QNT)*
Quant was founded in 2018 by Gilbert Verdian. It aims to connect blockchains and networks globally without reducing the efficiency and interoperability of the network.
Quant introduces the Overledger Network, a blockchain operating system that enables the connection and interaction of different blockchains and protocols. This ensures interoperability across multiple systems.
Quant allows for decentralized applications to operate across multiple blockchains simultaneously. It's used in various sectors, including finance, healthcare, and supply chain, for improving interoperability and efficiency.
These brief introductions provide an overview of some of the most prominent cryptocurrencies available on Coinmotion, showcasing their unique features and use cases. Each of these digital assets presents unique opportunities for investors and developers alike, contributing to the dynamic and evolving landscape of blockchain technology and decentralized finance.