Blockchain: Is it a hype or a hoax?  5

Ethereum overview

• Ethereum is a blockchain platform for transacting anything. Its native

currency is Ether.

• Ethereum is considered a decentralised platform for applications,

enforced by smart contracts.

• Ethereum framework includes ‘smart contracts’ (code) embedded in

the blockchain that gets executed once certain transaction conditions

are met.

• These contracts are executed by miners in exchange for a reward of Ether.

Ethereum smart contract overview

• Smart contracts help you exchange money, property, shares, or any-

thing of value in a transparent, conflict-free way while avoiding the

services of a middleman.

• You can use smart contracts for all sorts of situations that range from

financial derivatives to insurance premiums, breach contracts, prop-

erty law, credit enforcement, financial services, legal processes, and

crowdfunding agreements.

Alternative currencies overview

Alternative currencies are also called ‘Altcoins’. In essence, they are any

form of cryptocurrencies that are other than Bitcoin and now even Ethereum

(Eth) because of their market value. Some Altcoins share the same charac-

teristics as Bitcoin, but most of them are also different in terms of consen-

sus, platform, the project behind them, etc.

As of November 2021, there are over 14,131 cryptocurrencies includ-

ing Bitcoin and Ethereum; however, Bitcoin ($1.1 trillion market cap) and

Ethereum ($521 billion market cap) account for nearly 60% of the total

market cap of the total cryptocurrency market in November 2021.

The following is a list of some of the most successful and with the highest

market cap Altcoins (as of 21 November 2021):

• Binance Coin (BNB): market cap of $98.8 billion

• Tether (USDT): market cap of $73 billion

• Solana (SOL): market cap of $65.9 billion

• Cardano (ADA): market cap of $62.5 billion

• Ripple (XRP): market cap of $51 billion

• Polkadot (DOT): market cap of $40.8 billion

• SD Coin (USDC): market cap of $36 billion

• Avalanche (AVAX): market cap of 30.7 billion

• Dogecoin (DOGE): market cap of $30.3 billion

• Dhibu INI (SHIB): market cap of $25 billion (Figure 1.2)