As you know, for a plethora of years, Bitcoin is the trendsetter which has successfully ushered in a wave of digital currencies. Hence, it is the tip of the iceberg, which has built itself on a decentralized peer-to-peer network and became the renowned standard for cryptocurrencies. These variations which stem from Bitcoin are known as altcoins, which portray themselves as improved alternatives of Bitcoin which we will discuss below in depth.
While it may be a tad easier to mine these cryptocurrencies, the risks on value and acceptance depreciation, as well as lower liquidity is equally high.
With its launching five years ago in the year 2011 by Charlie Lee, LTC was among the first digital currencies which came after Bitcoin. As such, it was commonly known as “Bitcoin Silver,” and revolves around a worldwide payment network that no central authority has control over, and hence uses “scrypt” as validation of work. The “scrypt” is decodable via consumer grade CPU’s. Regardless of the fact that Litecoin has a striking similarity to Bitcoin, its block generation occurs in at the drop of a dime and thus, its transaction confirmation is ten times quicker. Additionally, the numbers of merchants who accept Litecoin as a real monetary currency are astronomically high.
With its establishment two years ago in 2015, Ethereum has evolved into a decentralized software platform which facilitates the building and running of Smart Contracts as well as Distributed Apps. The development of these applications occurs without any issues of fraud, downtime, and interference from any third parties. In 2014, there was a small pre-launch of ETH which received an overwhelming amount of responses. The software platform on which ETH runs is its cryptographic (Ether).
Ether has a striking similarity to a vehicle that is in constant motion on the software platform, on which a copiousness of developers seeks to build fully functional applications. Furthermore, Ether is excellent for the codifying, decentralization, security as well as trading anything, and has a market capitalization of a whopping 4.46 billion dollars.
It is an open source cryptocurrency whose launching occurred towards the end of 2016 and seems quite lucrative. In comparison to Bitcoin, it is like HTTPS if Bitcoin is HTTP. Hence, this is to emphasize how Z-Cash has top of the range security as well transparency. The unrivaled safety, since the recording and publishing of all Z-Cash transactions, occurs on a blockchain. However, sensitive details that run the gamut from the sender’s and receiver’s information in addition to the amount remain strictly confidential.
Furthermore, it provides its clientele with the opportunity of pinning down shielded transactions that facilitate content encryption and the use of top notch cryptographic content. These shielded transactions occur via a construction known as ZK-SNARK.
Initially known as Dark Coin, Dash is a more anonymous version of Bitcoin, as it functions on highly decentralized master code network through transactions are technically invisible. Hence, it leaves no trace of all conducted operations. Since its founding in 2014 by Evan Duffield, it gained popularity tremendously fast and to date has a vast customer base. In March 2015, it rebranded from Dark Coin to Dash which is the short form of Digital Cash. The rebranding had no effect on its technological aspects such as Instant-X and Dark Send. Lastly, its mining takes place via a CPU or GPU.
It is a phenomenal worldwide settlement network providing immediate, guaranteed and small international cash outs in real time. In addition to that, it facilitates a cornucopia of banks in the setting of cross-border real time and cheaper payouts, alongside full transparency on both ends. Since its founding about half a decade ago in 2012, it has successfully accumulated a substantial market capitalization of 1.26 billion dollars.
Ripple’s method of conforming is one that does not require mining and thus, this makes it a tad bit different from Bitcoin and altcoins. As such, it significantly lowers the amount of power needed for the computation process, in addition to the minimization of network latency.
Furthermore, Ripple has a strong belief in the fact the distribution of value automatically leads to the capitalization of specific behaviors. Therefore, its plans to distribute XRP on a large scale level are underway. As a result, this will lead to more liquidity, advanced developments, and incentives.
Like the ones mentioned above, it is highly secure and exudes anonymity via a chic technique called Ring Signatures. Since its founding in 2014, it has ignited a ton of interest among cryptography lovers, more so because it is donation and community oriented.
All in all, Bitcoin continues being the leader of the pack in the world of digital currencies, due to its market optimization, client base, and popularity. However, variations such as Ripple, Dash, and Ethereum, among others are increasingly becoming popular in a coterie of enterprises.