1. Introduction to Cryptocurrencies and Blockchain Technology
1.4. Major cryptocurrencies and their use cases
Bitcoin (BTC) is the most well-known cryptocurrency and is often referred to as "digital gold" due to its limited supply and store-of-value properties. Other major cryptocurrencies include:
* Ethereum (ETH): A platform for building decentralized applications (dApps) and smart contracts, enabling the creation of new tokens and decentralized finance (DeFi) solutions.
* Ripple (XRP): A digital asset designed for cross-border payments and money transfers, with a focus on speed and low fees.
* Bitcoin Cash (BCH): A fork of Bitcoin that increases the block size to allow for more transactions and lower fees.
* Litecoin (LTC): A lighter version of Bitcoin with faster transaction confirmations and lower fees, designed for everyday use as a digital currency.
1.5. Understanding the basics of blockchain technology
Blockchain technology is the foundation of cryptocurrencies and consists of a decentralized, distributed ledger that records transactions across a network of computers. Each block in the chain contains a list of transactions, and once a block is added, it is extremely difficult to alter. This makes blockchain technology secure and transparent, as all participants in the network have access to the same information. Blockchain technology has potential applications beyond cryptocurrencies, such as supply chain management, voting systems, and identity verification.