#CryptoMarketDip Crypto markets are an elemental component within the blockchain ecosystem. A differentiation can be made between primary markets, where cryptocurrencies are issued initially, and secondary markets, where tokens can be exchanged for other currencies.
Cryptocurrencies can be emitted in various ways. Bitcoin, the most prominent one, has simply been initiated through execution of computer protocol. Anyone can participate in the network as a miner, providing computing resources that help to secure the network, in return for which they are rewarded with newly created Bitcoins. This mechanism is referred to as Proof-of-Work (PoW). Numerous cryptocurrencies use mining as their consensus mechanism, the way to secure their network. Therefore, mining is a specific ecosystem of its own within crypto markets. Apart from mining, alternative consensus mechanisms include Proof-of-Stake (PoS), Byzantine Fault Tolerance (BFT) or Proof-of-Authority (PoA). All consensus mechanisms have their benefits and drawbacks. Improved consensus mechanisms are currently the subject of intense research efforts.
Another form of the emission of cryptocurrency is the so-called minting of tokens. Projects like Ethereum or EOS represent blockchain infrastructure projects that can execute computer code in a decentralized manner. Using these so-called smart contracts, projects can create (mint) new tokens on top of the blockchain that enable on-top applications. Three categories of such tokens can be distinguished:
