Cryptocurrency may be classified as the most innovative trend in the modern day finance-world. It’s basically the creation of digital assets that can act as a medium of exchange. The cryptocurrencies source codes are made available in common ledgers, but the core protocol is encrypted, to secure the transactions. Bitcoin is obviously the most popular cryptocurrency with a market cap that runs into billion dollars.
But Bitcoin has not acquired monopoly yet over the crypto-economy. We have both new and old cryptocurrencies that are giving Bitcoin a run for its money.
Running on the blockchain technology, we have Ethereum, an open source system that enforces smart contracts. Like Bitcoin, Ethereum is decentralized as well; meaning that the transactions are peer to peer, with no middleman. The Ethereum virtual bots execute commands on the one-tier network nodes. And the peers supply computational input.
The digital value token attached to Ethereum is known as “ether”. The ether is the reward that miners get after their computational input.
Since the launch of Ethereum in 2015, the system has received acceptance in the crypto-community and has made Vitalik Buterin (the founder) a dot com millionaire. The market capitalization of ether reaches into billions of dollars.
Taking advantage of its decentralized system, Ethereum has also launched a mobile payment service Everex, and a social media platform.
The founder of Litecoin, Charles Lee, had been a Google employee. Litecoin carries a lot of similarities with bitcoin. For one, it’s based on an open source command; therefore it doesn’t have a body that manages it. Litecoin production is finite. The network will stop producing more Litecoins once the units in circulation reach 81 million. As an alternative currency, Litecoin has enjoyed average success, and its core developers continue to upgrade the project, so it may feature more functions and products.
Litecoin publishes on the common ledger every two and half minutes whereas Bitcoin publishes every ten minutes.
Dash is another cryptocurrency on an open source protocol and that facilitates peer to peer transactions. The transactions are done instantaneously and the system has special technology for authentication. The Private Send feature allows for transactions between peers in a way that is kept secret. There’s a limit to the amount that can be transacted, though. The DASH system would solve problems encountered by the large organizations like banks who take so long to complete transactions.
Another network based on an open source protocol. Ripple provides both currency exchange services and remittance services. Ripple also has a digital value token known as the XRP. Like DASH, Ripple provides instantaneous peer to peer transactions too. On the whole, Ripple is more advanced than DASH, considering its strong security features and low charges.
At its launch in 2014, it had been named Bit Monero, but after a short time, the network was rebranded as Monero. Monero is popular for its strong security features like cloaking the address or the transaction figure. Monero’s open source protocol is tailored with more options so that peers may set up nodes.