Created by an anonymous developer, Bitcoin came out in 2008. Whoever it was, the developer’s goal was to create a “peer-to-peer payment system that would allow online payments to be sent directly from one party to another without going through a financial institution. ”
What Bitcoin did differently compared to other attempts at digital cash was to implement a blockchain system that prevented double spending. Instead of using a trusted central party to verify all transactions, Bitcoin verifies transactions through its peer to peer network.
Bitcoin remains the absolute leader of cryptocurrency and currently has a market capitalization (number of currencies multiplied by the value of each one) of more than $ 57 billion, or approximately 45% of the value of the entire cryptocurrency market .
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The main promise of Ethereum is that it is a “programmable blockchain” Turing-complete that allows developers to create all kinds of distributed applications and technologies that would not work as easily through the Bitcoin blockchain.
The Ethereum platform has allowed many companies to increase dozens (or even hundreds) of millions of dollars in funds for their own Ethereum-based projects. This has further increased the value of Ethereum, reaching around half of Bitcoin’s market capitalization this year.
Ethereum has recently faced some scaling problems as the number of companies launching an “initial coin offer” (ICO) increases. The network has been stuck for many hours or even days at a time due to a handful of popular projects that launch their own ICO to raise funds.
The developers behind the latform have promised medium and long-term changes to solve this, including the mpove to a “Proof of Stake” (PoS) transaction verification system that is supposed to be much more efficient than the “Proof of” system. Work “(PoW) that most virtual currencies-including Bitcoin-use.
Ripple is a payment network that allows “safe, instantaneous and almost free global transactions of any size without refunds”.
Ripple differs from most crypto currencies in that it does not use a blockchain to establish a consensus for transactions. Instead, it uses an iterative consensus process that makes it faster than the Bitcoin network, but it can also leave it more exposed to attacks.
The developers of a rival network called “Stellar Lumens” that used the same consensus query book that Ripple discovered that the system is unlikely to be secure when there is more than one node validating a transaction. However, Ripple strongly disagreed with the conclusion and claimed that Stellar had improperly implemented the consensus mechanism and lacked some of the built-in protections that Ripple had allegedly built.
Ripple has had some success in convincing large financial institutions, including Japan’s largest banks, to test its blockchain and perhaps even implement it in the future.
Although it has only existed for a few weeks, Bitcoin Cash has already risen to the top five in terms of market capitalization. That’s because Bitcoin Cash is actually a Bitcoin fork, supported by Bitcoin’s largest mining company, as well as Bitcoin’s mining chip maker (ASIC) – Bitmain.
A fork happens when a group of developers decides that they do not like the current software map address and then takes the existing code and adds its own improvements to it. This creates a separate version of the previous software with its own roadmap.
Bitcoin Cash was created primarily because Bitmain did not like a feature called SegWitthat Bitcoin recently implemented. SegWit allows for cheaper transactions (bad for miners such as Bitmain) and prefers larger mining blocks (8MB vs. 1MB for Bitcoin) as a solution to the growing problem of Bitcoin scalability.
One of the things that distinguishes the New Economy Movement (NEM) is its “Proof of Importance” (PoI) algorithm. Unlike PoW, which requires miners to use significant processing power to obtain new currencies, or PoS, which requires users to already own a certain amount of coins to get new ones, PoI really encourages users to spend their coins The PoI algorithm tracks a user’s transactions to determine the importance of that user for the overall economy of NEM.
Bitcoin has been considered “digital gold”, and one of the main reasons for that description is its limited number of coins (a maximum of 21 million can be created). This means that the value of Bitcoin should continue to increase over time, as long as more people start buying Bitcoin. This should encourage a large part of those who buy Bitcoin to keep it long-term rather than spending it on product purchases.
NEM, on the other hand, encourages the owners of their currencies to spend fast and furiously in order to earn even more NEM coins.
Litecoin was one of the first “altcoins” that were created with the aim of being the “digital silver” for Bitcoin’s digital gold. Litecoin was also a Bitcoin fork (like many crypto currencies in the early days), but it could generate blocks four times faster and have four times the maximum number of coins (84 million).
It also uses a different mining algorithm, called “scrypt”, compared to Bitcoin, which uses SHA256. This gives Litecoin a mining decentralization advantage because people only need GPUs to mine Litecoin, as opposed to Bitcoin, where ASICs are required these days for any type of mining reward.
More recently, the original Litecoin developer committed to working full time on cryptography. It also established a mission for Litecoin to become a mature cryptocurrency where new innovations could be tested before Bitcoin adopts them, too. This would make it safer for Bitcoin to adopt new technologies while raising the importance of Litecoin in the market.
IOTA is a cryptocurrency technology aimed primarily at the Internet of Things (IoT) and is characterized by not using a blockchain or chain of blocks in order to reduce the computational needs of the network and eliminate transaction fees.
The advanced technology of IOTA is called “Tangle”, in which the sender in a transaction is required to make a work proof that approves two transactions. This eliminates the dedicated miners that are needed to verify transactions in most other cryptocurrencies. It also makes the system more decentralized because each user becomes essentially a “node” in the network.
Another remarkable thing about IOTA is that it becomes faster the more users make transactions, because all those users are also required to verify other transactions. This is the opposite of most other cryptocurrencies that tend to be slower as more people use them and require new solutions to increase scalability.
NEO, formerly called “Antshares”, is often called the “Chinese Ethereum” because it has many of the same objectives as Ethereum and is developed in China, unlike most cryptocurrents that are developed in the US. or Europe. Being in China can also give you some advantages because of potentially improved relationships with regulators and local Chinese companies that may prefer to adopt it over a Western cryptocurrency.
NEO is an intelligent contract platform that allows developing all types of financial contracts and even distributed applications from third parties, such as Ethereum. Unlike Ethereum, where developers can only use their own “Solidity” programming language, NEO allows developers to use whatever coding language they like.
Dash is a more private version of Bitcoin that offers faster transactions (InstantSend technology), as well as anonymous transactions (PrivateSend technology). It also has decentralized governance, which makes it the first decentralized autonomous organization.
Dash uses a two-tier architecture for your network. The first level consists of miners who insure the network and write transactions in the chain of blocks, and the second level is composed of “masternodes”. Masternodes retransmit Dash transactions and enable InstantSend and PrivateSend transaction types.
Anyone can configure a masternode as long as they keep at least 1,000 DASH coins on their server. Masternodes earn money for those who operate them, which encourages people to run these masternodes and enable advanced DASH functions.
Ethereum Classic is the original version of Ethereum; the new “Ethereum” is a fork of this original version. The rupture occurred when a decentralized autonomous organization built on the original Ethereum was hacked. “The DAO”, as it was called to this organization, acted as a venture capital fund for future distributed applications that would be built on Ethereum.
A hacker took advantage of a breach in the Ethereum code that allowed him to steal a third of the money from this organization (around $ 50 million at that time). As a solution, the Ethereum developers proposed to make a “hard fork” or hard bifurcation that would be incompatible with the previous version and would be able to deny the hacker the funds he stole.
However, not everyone moved to the “new” Ethereum fork because many users still believed in the cryptocurrency’s original promise to deal with financial corruption and changes to the network based on a human whim.
Therefore, those who preferred the more unchanging nature of the original Ethereum decided to stick to Ethereum Classic. In spite of everything, it has remained one of the top 10 cryptocurrency.
Qtum is a fusion of Bitcoin and Ethereum technologies that targets business applications. It also uses an efficient PoS system to increase the efficiency of network transactions.
The underlying technology uses an ” Account Abstraction Layer ” ( Account Abstraction Layer ) that acts as a bridge between the Ethereum virtual machine and the Unspent Transaction Output model of the Bitcoin kernel. This gives the network the reliability of Bitcoin while allowing the development of intelligent contracts and distributed applications (DApps), similar to how it works in the Ethereum network.
The development team believes that Qtum applications should be easier to develop and that they should also be more secure than those in the Ethereum network. In addition, they believe that the industries that will most benefit from its platform will be mobile telecommunications, protection against counterfeiting, finance, industrial logistics (shipping, guarantee, etc.) and manufacturing.
Stratis is a Blockchain-as-a-Service (BaaS) platform that aims to provide solutions for corporations in the financial sector by allowing these companies to build their own private blockchains on the Stratis platform.
Not all companies may want to have their transactions uncovered and anyone is able to track them, especially if the cryptocurrency platforms they have to use lack private transaction features. This is where a platform like Stratis can be useful.
Stratis also uses C #, one of the most popular programming languages in the business sector, which could give it an advantage over other similar platforms. Stratis also allows companies to implement features seen on other platforms such as Ethereum or Waves in their own private block chains.
Monero is a cryptocurrency focused on privacy that has one of the most active communities due to its open ideals and security. Many consider it the most private cryptocurrency, especially after a recent Europol failure in which the only cryptocurrency transactions that could not be traced were Monero transactions.
Monero’s privacy is guaranteed by a ring signature algorithm, which means that the coins are “mixed” at the protocol level, which according to the developers of Monero makes transactions unreasonable.
Monero coins are also fungible, which means that there will be no way for sellers to block certain Monero coins (when money is received, from whatever source, it goes into a general stock exchange and does not differ from where it comes from). . All Monero coins will be interchangeable with others.
OmiseGO is a public financial technology based on Ethereum that can be used in digital wallets and allows peer-to-peer exchanges of fiat currency (USD, Euro, etc.) and cryptocurrency in real time. The aim of the project is to ” unseat ” users, or in other words, to disturb the banking sector by making people realize that they do not need a bank account to use digital money.
According to OmiseGO developers, “anyone will be able to perform financial transactions such as payments, remittances, payroll deposit, B2B commerce, supply chain finance, loyalty programs, asset management and trading and other services under demand. decentralized and economic “.
OmiseGO’s decentralized exchange does not treat fiat currencies better than cryptocurrency in their network, which means that the system is built to earn the best currencies.
BitConnect is a blockchain-based loan platform where users can buy BitConnect currencies with Bitcoin and then lend those Bitconnect currencies to others for a profit. According to the developers, BitConnect lenders can expect to make a profit of up to 40% per month, which sounds pretty incredible, and maybe too good to be true. This has led some to believe that BitConnect can be a scam.
BitConnect is ranked # 15 by market limit, so it seems that some people have bought the promises of the platform. If it is a sustainable project remains to be seen, but it may be a good idea to look elsewhere if you are thinking of investing in cryptocurrencies.
Waves is a platform similar to Ethereum in which anyone can create and launch their own asset / digital tab on top of it. However, Waves has more limited programming functions. The developers claim that this reduces the attack surface, making the platform more secure.
The Waves platform allows its own decentralized exchange, so that the owners of any Waves digital asset can directly exchange their currencies / assets with any other Waves token owner directly from the Waves platform.
Waves also offers users the possibility of converting fiat currency into chips that exist on the platform. For example, USD owners can buy wUSD tokens, which maintain their USD stable value. This feature allows Waves users to transfer the fiat tokens at much faster speeds in the block chain than to transfer regular USDs through the banks.
EOS is another competitor of Ethereum that uses a “Delegated Proof of Stake” (DPOS) system, which supposedly improves the regular PoS system because users can delegate their voting rights to others in the network in order to decrease the time of verification of transactions and making the network more efficient.
EOS also separates reading and writing actions to increase speed and allows public and private blockchains to communicate asynchronously. Instead of long addresses, users of the platform can also create account names, and those accounts can have different permission levels.
With EOS, you can also reverse changes to correct serious errors if a large majority of users agree to the changes. Presumably, this is done to avoid the same bifurcation that was created with Ethereum and Ethereum Classic.
BitShares is one of the first cryptocurrency platforms that allows the creation of decentralized autonomous organizations and also one of the first decentralized exchange markets. These allow users to exchange their cryptocurrencies easily and without having to worry about whether the exchange will allow or not withdraw the money or if it has been hacked.
Although decentralized exchanges are good in theory, none has gained critical mass so far. Cryptocurrency users tend to go where the largest volume of transactions occurs, which at this time is limited to a few popular centralized exchange markets. This may change in the future if some events, such as major hacks, push users to these more secure decentralized exchanges.
Like EOS, BitShares uses a DPOS system. This is not coincidence; the creator of EOS, Daniel Larimer, was also the original creator of Bitshares.
Zcash is the next generation of the Zerocoin protocol, whose goal was to create the first truly anonymous cryptocurrency. It uses a newly created technology called Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (zk-SNARK), a novel form of zero-knowledge cryptography.
The “zero-knowledge” tests allow one party (the tester) to prove to another (the verifier) that a statement is true without revealing any information beyond the validity of the statement itself.
Even though Zcash has the potential to be the most private cryptocurrency, the comments made by the developers, as well as the initial “trust configuration” for the secret key, have made many potential privacy-focused users doubt their privacy. use. This is the reason why, although it is not so technically impressive, Monero is still the cryptocurrency most focused on privacy at this moment, and has real data to prove it.
TenX is a cryptocurrency payment platform that includes a portfolio, physical debit card, bank account, access to ATMs and other features. The goal of this project is to make it easier to spend cryptocurrencies in the “real world”. As of now, TenX supports some of the most important crypto currencies such as Bitcoin, Ethereum and DASH, as well as all tokens based on Ethereum. The developers plan to add more cryptocurrencies in the future.
TenX change and expenses fees are 0%, but you will have to pay fees for the physical and virtual cards that will keep your money. There is a withdrawal of ATMs of 200 euros and a limit of daily expenses of 2,500 euros. Up-to-date accounts can withdraw up to 1,000 euros and spend up to 20,000 euros per day.
Tether is a special type of cryptocurrency in the sense that its value is anchored to the US dollar. That means that it allows people to store their USD in a cryptocurrency that does not see the same kind of volatility that cryptocurrency see on a daily basis.
The traders , especially, can store their money in Tether whenever there is a widespread slump in the value of major criptomonedas. When the market is showing signs of recovery, they can begin to negotiate again other cryptocurrency.
The company behind Tether claims that the currencies are backed 1 by 1 by the reserves in USD and that their holdings are published daily and are frequently audited. However, the company also says that it does not convert the Tether coins to USD by itself. Users must change Tether to other currencies through online exchange markets.
STEEM is according to the team that supports a “social network with rewards.” The main site to take advantage of the STEEM blockchain is Steemit.com, which is maintained by the same STEEM developers. Steemit is a competitor of Reddit where people can earn money by publishing, commenting and promoting other people’s posts. The social media site that is powered by STEEM is still small at this time, but some of the regular and original authors can now earn more than $ 1,000 a day.
Due to its small user base (less than 1 million users), Steemit still feels a bit rough around the edges compared to the much more mature Reddit website, but as the site and the STEEM rewards platform are becomes more popular, it is likely to change.
The Steemit community is quite active and seems to firmly believe in the platform. Receiving payments to post on a social media site sounds like a better way to spend your time online than doing similar messages on Reddit, Twitter or Facebook for free. More people can come to an agreement on that conclusion once they hear about the STEEM platform.
Bytecoin is another cryptocurrency focused on privacy that uses the same technology based on the Cryptonote ring signature to do anonymous transactions. According to the developers, nobody can identify who sent the money, who was the receiver and how much money was transferred.
Transaction processing is performed by the entire user network, but no participant has access to the details of a particular transaction. As all users are effectively “miners”, they are also rewarded with currencies based on how many computational resources are committed to the network. This architecture also makes Bytecoin one of the few cryptocurrencies that does not require transaction fees.
Bytecoin uses the “CryptoNight” work test system so that only CPUs can be used for mining instead of powerful GPUs or ASICs.
Status is a “decentralized mobile messaging platform” that is based on Ethereum. Beyond encrypted and peer-to-peer messaging that is resistant to censorship, it also offers users the ability to send payments and smart contracts to friends from within chats.
Status’s “Discover” feature allows users to discover other people interested in the same topics and distributed applications. Status also includes an Ethereum browser, which means that users can interact with other DApps based on Ethereum from within Status.
Regardless of whether Status is successful in building its platform, it can pave the way for other messaging applications to adopt a P2P architecture based on block chains that also provide the necessary funding through ICOs.
Lisk aims to be the first “modular blockchain”, where each application distributed above it is not just a token (as in the case of Ethereum), but its own blockchain (or sidechain ). The developers have given a few examples of how this technology could be used:
- Decentralized storage can be done in an autonomous block chain or in a Lisk.
- Anonymous transactions can be performed in a standalone block chain or in Lisk.
- A social blogging system can be done in an independent blockchain or in Lisk.
The list goes on. The sidechains or side chains are operated using the same DPoS system used by the primary blockchain Lisk, and are protected by 101 superior delegates. These senior delegates are decided on the basis of the weight of the vote of other users in the network.