Bitcoin has not merely been the leader in ushering in a trend of cryptocurrencies built on decentralized peer-to-peer networks, it has additionally become the standard for many cryptocurrencies. It has inspired an ever-growing band of followers and creators who understand the ability of newer, safer, harder, fairer and faster money. As it pertains to commentary around all cryptocurrency globally, the first thing that springs to mind is understandably Bitcoin. Beyond the ability, profit, brand recognition and opportunity Bitcoin provides, it’s just one of so many cryptocurrencies that are changing the entire world for the better. There are currently about 3000 cryptocurrencies that have a purpose-built function to deal with the security, storage and distribution challenges of data well beyond just money.
What Are Cryptocurrencies?
Before we take a closer look at several of those alternatives to Bitcoin, let’s step back and briefly examine what we mean by the terms cryptocurrencies and altcoins. Firstly, a cryptocurrency is broadly defined as virtual or digital money that takes the form of tokens or “coins.” There’s only 1 Bitcoin cryptocurrency and every other coin option to Bitcoin is called an altcoin.
While some cryptocurrencies have ventured to the physical world with charge cards and other projects Invest bitcoin to make money, the large most cryptocurrencies remain entirely intangible. Just like that you don’t need to touch a message, digital image, file or video stream for it to possess value and use, the exact same applies with money and information. However, the important thing difference between an electronic digital file and an electronic digital currency is that cryptocurrencies like Bitcoin can not be copied. That’s, while you can copy and paste an electronic digital file, that is incorrect with Bitcoin and other cryptocurrencies ensuring they maintain their value in scarcity and preventing counterfeiting.
The field of cryptocurrencies is consistently growing, and the next mammoth digital token might be released tomorrow. While Bitcoin is a pioneer in the era of cryptocurrencies, experts adopt many ways of evaluating tokens or coins. Analysts, commentators and investors alike assign a great deal of importance to the ranking of coins relative to one another with regards to their fiscal value within the crypto market. While a coin’s price and overall market value should be used under consideration, you can find other explanations why a cryptocurrency attracts attention and subsequent investment. Let’s go through the following alt coins that are proving their value through real-life use cases.
The Ethereum cryptocurrency (ETH) first appeared in 2015 as an open software platform centered on blockchain technology. It allows developers to create and deploy their particular decentralized applications on the top of Ethereum blockchain. Beyond merely a store of value or money network, Ethereum provides everyone with an opportunity to leverage off the ability of blockchain technology with a programmable application. You might like to think about Ethereum to crypto as GoDaddy or Wix is always to the internet. That’s, before such sites existed, only qualified web creators could build an internet site as there wasn’t a user-friendly interface for the average indivdual to do it themselves. Nowadays, through the ability of sites such as GoDaddy and Wix, almost everyone can build their particular website. This is synonymous to the ability of Ethereum as we could see multiple projects built upon the Ethereum network due to its design, security, simplicity and reliability. At the time of the writing, the value of Ethereum issued (known as a marketcap) reached $291 billion USD, with one “ETH” costing $2,524 USD per coin.
Ripple (with its cryptocurrency coin called XRP) was designed to increase bank transactions while reducing the fees endured by the customer. You might like to consider as Ripple replacing the slow and very costly SWIFT network that facilitates the international remittance market. Ripple technology has already been in use by some banks. Unlike Bitcoin that was designed to replace banks, Ripple aims to aid banks through faster transactions at a diminished cost. Dissimilar to Bitcoin and Ether, you can’t mine Ripple. Although XRP operates through blockchain technology, it is rather different to Bitcoin as it is a centralized system where all of the digital money (ie XRP) already exists and belongs to an American company called Ripple Labs. Users, banks and investors can purchase XRP tokens to either hold like an investment, or use on the Ripple network to quickly and cheaply transfer value in one user to another.
Charlie Lee, a former Google Engineer created and launched Litecoin in 2011. It was among the very first cryptocurrencies to follow along with in the footsteps of Bitcoin and is often called the “silver to Bitcoin’s gold.” The speed of Litecoin transaction processing is faster than Bitcoin and acts as both a shop of value and payment network. Litecoin also uses less power compared to the Bitcoin network due to the way in which it was designed.
Dash is a revolutionary digital money system that was launched in 2014. The network has grown to 4,1000 master nodes rendering it among the largest peer-to-peer networks in the world. Consequently of more nodes, the platform could possibly offer more capacity and security for the users. Miners who support the Dash network are rewarded for securing its blockchain and master nodes through the payment of Dash coins.
The Nem cryptocurrency appeared by the end of 2015. Unlike most cryptocurrenciesArticle Search, it has its own unique code. The most significant feature of Nem is that it works using the POI (proof of importance) algorithm technology. This is a vastly different method of securing a network compared to Evidence of Work and Evidence of stake blockchains.