Cryptocurrencies are essentially digital assets in form of moneys and intended as means of exchange. The designs of financial systems inbuilt regulation of how many currencies are created despite no central regulatory bodies managing the transaction records. Cryptocurrencies are among the off-springs born by the rapid technological advances of the 21st century. Bitcoins are cryptocurrencies, developed by some anonymous programmer Satoshi Nakamoto, and coin holders use them to make secure online transactions. Bitcoins debuted 8 years ago and it came to meet some other cryptocurrencies.
Initially, investors greeted bitcoins with slow degree of reception (especially in the US). However, as time matured they became more widely accepted. Now a lot of business transactions are carried out in Bitcoins. In fact, lots of people have taken advantage of Bitcoins to store up their funds because of tits anonymity. The good thing about this is that you have got no precise idea by what margin the currency might appreciate in the nearest future. But one thing is certain: there are 21 million bitcoins, so they would get exhausted someday and this is good news because the more reduced the numbers get, the more valuable the Bitcoins become.
Being the first cryptocurrency to attain utter decentralization, Bitcoins can better be seen as a pioneer to the creation of other cryptocurrencies. Indeed, while the activities of mining and trading of Bitcoins are quite popular among many internet amateurs, lots of people are not aware that there are other cryptocurrencies, or more precisely over a thousand others. We consider some of those other cryptocurrencies below.
Ethereum debuted in 2015. It improved upon previous cryptocurrencies through the introduction of the capacity to carry out Smart Deals and Distributed Applications (DApps). Ethereum now has a financial worth over $5 billion. In addition, Ethereum achieved this functionality while not increasing the risk of fraud or insecurity. Ether is the application platform on which the handling the Ethereum transactions. It is also a ubiquitous tool for for Ethereum-based app developers. The application is multi-utility, functioning as a code-enhancer for the trading and decentralization of the Ethereum cryptocurrency.
Built around an open source global network, the LTC was established in 2011. It is widely considered as the Siamese twin of the Bitcoin, as it resembles the Bitcoin in all its features free from regulation by some central bank. Charlie Lee, of Massachusetts Institute of Technology originally developed LTC. Computers of highly optimized functionalities handle its evidence of work system, also knowns as a “scrypt”. Unlike Bitcoin which takes about 10 minutes to acknowledge that a transaction took place, LiteCoin takes lesser time to actually get confirmation. It is also worth knowing that LTC was greeted by warm reception and its gaining foothold as the days tick by.
Launched in late 2016, this cryptocurrency took privacy a whole level. Zcash should be seen as a more secure version of Bitcoin itself. It made for the recording of transactions on the blockchain without the loss of anonymity on the part of the sender and the receiver. Using a zk-SNARK encryption, Zcash masks transactions incredibly well. It is one great cryptocurrency although it has not gained as much usage as Ethereum and Bitcoin.
Also called Dash, this cryptocurrency was launched in the first month of 2014. This cryptocurrency totally erases the trails of any transaction, and as a result keeps the transaction untraceable. By employing a CPU, you can mine this currency, and it has gained lots of users in three years. Most users describe it as Bitcoin with upgraded level of secrecy.
Launched in 2012, this cryptocurrency’s primary use is to balance out monetary engagements between banks real time. Unlike Bitcoins and some other cryptocurrencies, this one does not involve any mining activity and is inexpensive to run. It holds almost $2 billion market worth. These numbers signify the wide reception of the new currency.
There are a host of other cryptocurrencies that worth mentioning (not based of superiority of course). Examples include Monero (XMR), Ven, NyanCoin, Coinye West, Doge Coin, PotatoCoin and RouletteCoin (which is a digital currency designed specially to cater for the needs of the casinos). There are indeed certain ventures in which one might discover that some other cryptocurrency, like Ethereum and Litecoins, thrives more than Bitcoins. For one thing, there is really no telling how long it would take before cryptocurrencies become a dominant financial system, but it is certainly becoming a likely eventuality.