Name : Diana Febri Wuri Nastiti

NIM : 213020201020
Subject : English For Science and Technology
Topic : Vocabulary Learning For EST
Cryptocurrency
By now you might have heard that cryptocurrencies are digital currencies secured by cryptography. But
how many types of cryptocurrency are there? It’s not just Bitcoin and Dogecoin making waves–there are
actually thousands of cryptocurrencies in existence. In this article, we take a look at the top 10 (based on
market capitalization), and give you some insight into other crypto assets you need to know about.
Cryptocurrency or digital currency is an alternative form of payment which exists virtually and uses
cryptography to secure payment and transactions. Cryptocurrencies do not have any central or regulatory
authority like fiat currencies, instead they use a decentralized peer to peer (P2P) network to record
transactions and issue new coins in the market.
Cryptocurrencies are based on a distributed public ledger which is known as blockchain. A blockchain
keeps a record of all the transactions that have been held by the currency holders. These currencies are
further stored in digital wallets which consist of private and public keys.
What are the different types of cryptocurrency?
While many cryptocurrencies share a blockchain-based infrastructure, there are some striking differences
between them. Generally speaking, cryptocurrency can be clustered into two distinct categories: coins and
tokens.
Coins and altcoins
A coin is any cryptocurrency that uses its own independent blockchain. For example, Bitcoin is
considered a “coin” because it runs on its own infrastructure. Similarly, Ether is operated via the
Ethereum blockchain.
The term “altcoin” is used to refer to any coin other than Bitcoin. Many altcoins operate similarly to
Bitcoin. However, others, such as Dogecoin, are rather different. Doge, for instance, offers an unlimited
supply of coins compared to Bitcoin’s cap of 21 million coins.
Tokens
Like coins, tokens are also digital assets that can be bought and sold. However, tokens are a non-
native asset, meaning that they use another blockchain’s infrastructure. These include Tether, which is
hosted on the Ethereum blockchain, and others, including Chainlink, Uniswap, and Polygon.
10 popular types of cryptocurrency and how they work
1. Bitcoin (BTC)
Bitcoin was the world’s first cryptocurrency, with its origins dating back to a white paper published in
2008, and remains the best-known type of crypto. It functions on its own blockchain, with transactions
verified (and new Bitcoins created, up to a fixed cap) by an army of decentralized miners. In January
2022, Bitcoin was the cryptocurrency with the largest market cap, at US$896 billion.
2. Ether (ETH)

Ether is the cryptocurrency that runs on the Ethereum blockchain. Like Bitcoin, Ether operates on its own
blockchain—but unlike Bitcoin, Ether is uncapped, meaning that an infinite number of coins can
theoretically be created. Ethereum also supports smart contracts, which are programs that run on the
Ethereum blockchain and are executed automatically when certain conditions are met.
3. Binance Coin (BNB)

Binance Coin is native to Binance, the world’s largest cryptocurrency exchange as of 2021. Transaction
fees for this exchange are reduced for users who choose to pay in BNB. This has encouraged the adoption
of Binance Coin, making it one of the largest cryptocoins in the market. To ensure its value remains
stable, Binance destroys or “burns” a fixed percentage of the coins in circulation.
4. Tether (USDT)

Tether is a type of stablecoin, designed to have a less-volatile price by being linked to an external asset. In
this case, each coin is backed by an equivalent number of US dollars, which keeps it from experiencing
the same kind of pricing volatility that other cryptocurrencies face. There is however, some debate about
whether it truly is fully backed by the dollar.
5. Solana (SOL)

SOL is the native coin of the Solana platform, which functions on a blockchain system, just like Ethereum
and Bitcoin. Solana’s network can perform a whopping 50,000 transactions per second, making this
platform especially attractive to investors looking to trade quickly.
6. XRP (XRP)

XRP, which runs on the Ripple network, has been described as a “cryptocurrency for banks” because it's
tailor-made to serve the needs of the financial services industry. Conceived as a way to facilitate
international payments, XRP acts as a bridge between two different currencies to offer cheaper, quicker
global transfers.
7. Cardano (ADA)

ADA is the native coin of the Cardano blockchain. Dubbed a “third-generation” cryptocurrency, Cardano
splits its blockchain into two layers to increase transaction speeds and implements native tokens to ensure
a better experience for ADA holders.
8. USD Coin (USDC)

Much like Tether, USD Coin is a stablecoin connected to the US dollar that cannot be mined. However,
unlike Tether, USD Coin has more transparent funding and better auditing processes. The aim is to
remove some of the risk associated with crypto, as users should always be able to withdraw their coins
and receive the corresponding amount of cash in exchange.
9. Aave (AAVE)

A decentralized crypto platform built on a proof-of-stake blockchain, Aave uses smart contracts to allow
users to borrow and lend cryptocurrencies. As a protective mechanism for customers, Aave specializes in
so-called overcollateralized loans, meaning customers are required to make crypto deposits worth more
than they borrow. Users can then borrow up to a certain percentage of the pledged collateral value,
helping avoid issues like loan defaults. They also have their own native token — also called AAVE.
10. Avalanche (AVAX)

AVAX is the native coin of the Avalanche platform, which bills itself as the “fastest smart contracts
platform.” AVAX is, among other things, used to pay transaction fees on the Avalanche platform. The
Avalanche platform allows developers to create new custom blockchains on Avalanche as “subnets.”
Avalanche’s blockchain is compatible with Solidity, the Ethereum blockchain’s programming language,
which makes it easier for Ethereum developers to build subnets on Avalanche.
Task 1
Try to guess the names of logo without looking at the book!

Task 2
Match the statements with the appropriate answer choices below!

1. The first decentralized cryptocurrency using blockchain technology to facilitate payments and
digital transactions :
2. The token used to facilitate transactions on the Ethereum network. :
3. Type of stablecoin, designed to have a less-volatile price by being linked to an external asset :
4. Can be used to pay fees on the Binance exchange and to power Binance's DEX :
5. One that has the stability of U.S. fiat currency but doesn't require a bank account or that the
holder live in a particular country:

a. Tether
b. Binance Coin
c. Ethereum
d. Bitcoin
e. USD Coin
Task 3
Filll in the blank dots! You can open the book or Internet if it necessarily

Bitcoin-derived Blockchain

1. Litecoin
Altcoins 2. ………..…
Cryptocurrency 3. …………..
4. …………..

……..
Native Blockchain

6. Ripple
7. ……..…
8. ………..
9. ………..