Bitcoin is the first decentralized cryptocurrency ever created, and is the one that defined the grounds of blockchain technology. Launched in 2009, Bitcoin is dominating the crypto market today with a market cap of over one trillion U.S. dollars. But its dominance is slowly losing ground; in January 2021, the Bitcoin market cap represented 71% of the total market cap of all the cryptocurrencies. Today, in May 2021, this number has significantly dropped to 46%.
It shows that things have changed in the last months and that people are investing in coins other than Bitcoin. But what are those other coins that are slowly taking a significant place in the market? Today, Luxembourg Blockchain Consulting (LBC) has decided to present you with little, exciting facts about these coins: Ethereum (ETH), Binance Coin(BNB), and Litecoin (LTC).
1. Ethereum (ETH)
Created in 2014, the Ethereum networks allow users to create and deploy Smart Contracts to develop Decentralized Applications (DApps). The network will enable consumers to build and launch applications without any downtime, fraud, control, or interference from a third party.
Currently, ETH holds the second place of the most significant market valuation, right after Bitcoin. It is primarily because the transaction fees are lower than BTC and the transaction times are shorter. Everyone is waiting for the next ETH 2.0 to be fully launched, making the network more sustainable, scalable, and secure. The Luxembourg Blockchain Consulting Team is already working on the article to present you with all the new ETH 2.0 update specificities.
2. Binance Coin (BNB)
The rise of the Binance Coin to the 3rd largest market valuation shocked everyone in 2021. Unlike the other cryptocurrencies, which are often compared to a "Store-of-value", BNB can be used on the Binance exchange to receive discounted fees, smart-chain deployments, credit card payments, etc.…
It is also important to point out that the proliferation of tokens on Pancakeeswap grew a high demand for BNB, as it is the only currency in which those new "altcoins" can be purchased.
3. Litecoin (LTC)
Litecoin is also known as the "Silver to Bitcoin gold" due to its mining method. Litecoin was one of the first cryptocurrencies created. Launched in 2011 by an MIT Student, this altcoin is similar to Bitcoin. Both rely on the proof of work as their consensus mechanism. However, Litecoin has a faster block creation rate than Bitcoin, which leads to a shorter transaction time. Also, the Litecoin proof of work is made so that even individuals can mine it with traditional consumer-grade CPUs, making the mining accessible to everyone.
In addition to all this:
• Ethereum and BNB have networks where smart-contract can be created and deployed.
• All the cryptocurrencies above are more sustainable than Bitcoin (as they rely upon a less energy-consuming consensus mechanism).
• The transaction fees on BNB and Litecoin are remarkably low. Ethereum will join the club with Ethereum 2.0.
These three coins represent a tiny portion of the 9,671 cryptocurrencies listed on CoinMarketCap (10th May 2021). Among those coins, some of them are real game-changers that we will be presenting in the following articles.