Cryptocurrency is still a new world, and hence, it needs strict
regulation rules just like the stock exchanges do. Unless the prices
are under control, many organizations would not prefer to work with
cryptos for the associated risks in the ever-changing transaction
fees.
1.14 Market Capitalization
The market capitalisation of a cryptocurrency is a primary indicator
for the investors to measure the safety and stability to trade in
comparison to its peers.
Why does market capitalization matter?
Because, the higher the market cap, the higher is its growth potential
in the global crypto market. Also, higher adoption indicates its ability
to survive in the volatile environment of the cryptocurrency world.
As the technology matures, different protocols have been introduced
in the market and some of them are playing really well with the
solutions that can achieve most of the non-functional requirements
listed earlier. So, in the upcoming chapters, let’s explore the different
types of Blockchains and DLT networks, and learn what problems
they can solve.
Summary
In this chapter, we covered the following topics:
Evolution and hype of Blockchain.
Introduction to Bitcoin and its differentiators from the previous
generation’s payment systems.
Key concepts of Blockchain as cryptography, hashing, wallet
types, decentralisation, consensus, smart contracts, tokens,
forks, threats, permission levels etc.
Areas of research and improvement for Blockchain, for
example, consensus models, scalability, transaction fees, and
L2 technologies.
How to choose the right crypto.