Dive into the Ins and Outs of Cryptocurrencies for Beginners

Starting with Bitcoin, then followed by Ethereum and Solana. Cryptocurrencies may not be something that is easy to digest at the beginning of its appearance. For someone who is layman in the world blockchain and crypto, this currency will be increasingly difficult to identify because its existence is only virtual.

What cryptocurrencies are circulating in the community? In this article, we will discuss the difference between crypto and fiat currencies and recognize Ethereum and Solana as innovators in the industry. decentralized finance.

Crypto vs Fiat

Talking about money, it seems that there will be no end. We (almost) always need money to get what we want. Therefore, money has become one of the largest value exchange solutions in the world. Today, technological innovations continuously make it easier for someone to transact.

Starting from paper money as the standard currency, up to applications mobile banking which not only facilitates transactions, but also aspects of public investment. One of the radical innovations that we can find today is the currency that circulates in the blockchain ecosystem, namely cryptocurrency or what we can call "crypto currency".

Fiat, currency issued by the government (such as Rupiah, Dollar, Yen, and other currencies), has a fairly basic difference with cryptocurrencies. One such difference is that cryptocurrencies are not managed by the government or are decentralized (decentralized finance).

So, what are some examples of cryptocurrencies that are not only pioneers but also innovators in the development of this blockchain? Here are two categories of crypto coins, Stablecoins and Altcoins.

Stablecoins, Crypto Coins of Stable Value

Stablecoins are cryptocurrencies whose value has been pegged – or tied – to currencies such as Rupiah or other financial instruments such as gold. This crypto currency – Stablecoin – can be said to be a solution for investors who are looking for an alternative to another popular cryptocurrency, namely Bitcoin.

Bitcoin currency is known for its high volatility, so it may not be suitable as an investment instrument for investors who do not like risk. Some of the popular stablecoins include Tether (USDT), USD Coin (USDC), Binance USD (BUSD). There is also a cryptocurrency with local wisdom denominated in Rupiah presented by StraitsX, namely XIDR.

The combination of the stability of traditional assets with the flexibility of digital assets has finally proven to be a very popular idea and is loved by many. We can see from the valuation of each of the popular stablecoins. Billions of US dollars have flowed into Stablecoins such as USD Coin (USDC). This is proof that Stablecoins are a healthy alternative for storing the value of the US dollar and trading its value in the crypto ecosystem.

Altcoins, crypto coins that love to innovate

Alternative coins, abbreviated as Altcoins, are simply crypto coins in circulation other than Bitcoin. One of the most popular Altcoin currencies is Ethereum. In addition to the functionally rich Ethereum and utility, there is also a sensational crypto coin, Dogecoin.

Another cryptocurrency is Solana. Currently, Solana – quietly drifting away – with all her potential is snatching the crown of Altcoins with higher valuations than Ethereum.

Ethereum

There's a special reason why we hear about Ethereum so often, even though you might not keep up with it catch up with the world cryptocurrency. In addition to its fairly stable value (outside of bear market) and consistent developments in its finances, Ethereum is growing very fast on the innovation side. The Ethereum network has coins with the registered currency code ETH, or as they are often called 'ether', stands for Ethereum.

OpenSea as marketplace The world's largest NFT is marketplace exclusive trading tokens using Ethereum currency. The mechanism has been around for a long time before the Solana crypto coin entered the competition on the platform a few months ago.

Ethereum was born in 2013 by programmer named Vitalik Buterin. This Ethereum network then did fundraising and started its development before finally going into operation on July 30, 2015. Ethereum continues to be a pioneer in making Smart contract and setting the most up-to-date standards in the manufacture and trade of NFTs. One of the most popular standards, allowing Ethereum users to cast and generate voting tokens, features staking or virtual currency, is ERC-20.

Recently, Ethereum even had time to approve a request from ERC-4907 to become EIP-4907. This standard token allows users to rent their digital assets for a certain period of time to other users. Final standards Ethereum is very promising in the field of DeFi, Gaming, and many other areas that desperately need innovation in the rental aspect. For full token review standard Here, you can read reviews from Artpedia HERE.

Solana

Like Ethereum, Solana is a cryptocurrency and a flexible platform for running other decentralized applications (dapps). Solana can be used for anything from NFT trading to exchange Serum (DEX). The ultimate innovation from Solana, which makes it different from Ethereum, for example is the transaction speed that this currency offers.

Solana offers transaction speed through a new and cutting-edge technology called proof of history (PoH). Solana is able to process approximately 50.000 transactions per second, a significant speed difference compared to Ethereum which requires 15 seconds or less. Ethereum Merge – the forthcoming type of Ethereum – will be launched at a greater speed than it is now.

Because Solana is very fast, congestion on transactions and gas fee of this currency is at a number that tends to be low. This transaction speed feature is the key to the trust of users of the Solana network and the SOL coin. No wonder Solana was able to overtake network and coin ecosystems like Ethereum in terms of market share.

In NFT trading and exchange, Solana played a lot in Magic Eden, marketplace Exclusive NFT for Solana ecosystem users; Solana network and SOL coins. One of the popular NFT projects, has been covered by many media mainstream is OK Bears.

The emergence and popularity of this project has also become the subject of gossip for Ethereum ecosystem users in the OpenSea marketplace. Instead of bringing up more successful projects like Cool Cats or Azuki, some programmerEthereum developers made a very similar copy called Not Okay Bears which is being sold on OpenSea.

The developers of Okay Bears certainly didn't accept it until the drama started. You can read the full story of the polemic of these two NFT ecosystems HERE. OpenSea has recently opened pintu to integrate the Solana ecosystem, including trading NFT using the SOL currency into its platform. With this decision, will the tussle between the two Ethereum and Solana ecosystems end? We'll just have to wait and see.

Discussing crypto, blockchain, NFT, and other cutting-edge terms may be quite complicated for those of you who are not familiar with Web3 adoption. Web3 is a decentralized internet ecosystem and will be highly connected with the concept blockchain and token-based economics.

If you are interested in discussions about Web3, crypto, blockchain, metaverse and other topics related to the latest digital ecosystem, you can follow Web3 Developer Bootcamp organized by DailySocial.id and supported by Sinar Mas Land and WIR!

With the theme “Building Builder of the Future”, the Web3 Developer Bootcamp will be filled by keynotes who are experts in their fields such as Antonny Liem (GDP Venture), Intan Wibisono (ArtPop Up, Indo NFT Festiverse), On Lee (GDP Labs), Yohanes Adhi (DailySocial.id), and other experts trainers and expertise such as Muqorrobin Marufi (Ansvia), Tata Tricipta (Exclusor), Reza Anwar (Inamart).

For more details, you can register yourself at the Web3 Developer Bootcamp at this link. In addition, you can also join the Artpedia NFT Marketplace to discuss the Web2 and Web3 technology ecosystem via the following link this.

Author: Faisal Mujaddid from Artpedia - L2 Ethereum NFT Marketplace 

Editor: Nandang Ary Pangesti