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This is the fourth part of a series that will cover all the first 50 Cryptocurrencies and will provide an introduction on what the currency does, because it is important and on all the important salient points. The goal of the Top 50 series is to provide readers with a basic understanding of each coin that simplifies a thorough technical understanding in just a few easy-to-understand points. The coin classification changes from day to day and may not always reflect the order in this article.
16 of 50 – NEM (XEM)
NEM is a blockchain platform emerging from community collaboration since 2014. NEM allows users to access a configurable blockchain framework to create a wide variety of custom applications. It does so through its resources and the spaces of intelligent names.
Smart resources are digital assets on the NEM blockchain that can be configured to possess various attributes, not just as a unit of currency. Resources are known as mosaics and can represent anything from a unit of currency to a security, bond or reward points. They are held by NEM addresses which may be user accounts or something similar to a package. Resources can also be listed via a namespace, which is similar to a domain name on the NEM blockchain.
Overall, this functionality allows the creation and listing of unique and custom resources to track and negotiate from the blockchain system. NEM uses evidence of importance as a consent protocol, which is similar to Google's PageRank. This means that more nodes are connected and trusted than a given node, the higher the node that is classified. This is combined with the use of an Eigentrust that allows nodes to classify other nodes in terms of reputation.
Unique to NEM, nodes can collect the transactions they process but the amount generated by the node is not related to their processing power, but rather to their reputation and rank.
NEM offers both public and private iterations of its software.
17 of 50 – Ethereum Classic (ETC)
Ethereum Classic is the original Ethereum chain. When the DAO incident occurred on Ethereum, most of the community decided to shell out the network and restore the funds lost due to the hack. Ethereum classic is the original chain that has not pierced and has been maintained by a small section of the community that has opposed the fork.
The development of Ethereum Classic is managed by a different team from that of Ethereum and is not backward compatible with Ethereum. The essence of Ethereum Classic is that the community believes in an "immutable ledger", which means that the previous fork should not have happened as it shows that the ledger can be changed. The Ethereum Classic chain supports this principle.
Despite being the smallest of the two chains, ETC has gained its share of attention in the Grayscale Investment Portfolio and in Coinbase.
18 of 50 – NEO (NEO)
NEO is a blockchain platform able to execute smart contracts. It was founded and operated outside of China and has often been compared to Ethereum in terms of functionality, but it has several fundamental differences.
NEO is very scalable. It has fast transactions and transactions are free. This is because currently it is not a real open blockchain, even if it plans to decentralize others in the future. It is not possible for anyone to run a node on NEO, but the nodes will eventually be managed by a wide variety of companies in different industries. NEO is able to benefit from these compromises to achieve greater scalability and cohesion of development. The NEO can not bifurcate and development is led by the NEO Council.
NEO presents two different tokens, NEO and GAS. It has a robust DApp ecosystem and developers who have worked to create a wide range of features. The team behind NEO is also developing Ontology (ONT), which is a ready-made industry blockchain, also based on China. The overall goal of NEO is to have a huge ecosystem of services that covers many DApps and multiple chains (ONTs). The founders of NEO work closely with Bitmain and Elastos (ELA).
19 of 50 – Maker (MKR)
MKR is part of the Dai Stablecoin Maker system. MKR is half of a two-part system next to the DAI token. Together, MKR and DAI work together to create a stablecoin (DAI). DAI is designed very differently from other stablecoins such as Tether (TUSD) or the Gemini Dollar (GUSD). This is because there is no central body controlling the Maker Dai system. Instead, it uses a system of smart contracts.
A user must convert Ethereum to DAI to purchase it. The DAI is structured to always have a value of $ 1, and accomplishes this by combining and destroying MKR in response to price fluctuations. MKR token holders are paid a commission to stabilize the DAI system during conversions from the DAI to the ETH.
The mechanisms by which the DAI is stabilized are extremely complex and would be described in greater detail if not for the fact that they did not work. The value of DAI has undergone strong fluctuations and has not maintained stability.
In some days of extreme market volatility, we saw the price of the DAI shift between 72 cents and $ 1.25, so the mechanisms that stabilize the currency do not seem to work.
20 of 50 – ZCash (ZCASH)
ZCash is a privacy-centric currency that has managed to attract a fair amount of attention and is included by both Grayscale Investments and Gemini.
ZCash protects the sender, recipient and value of transactions from reading on the blockchain. This is achieved using Zk-Snarks, a protocol developed by Zcash.
Zk-Snarks is a zero knowledge test scheme. This means that it allows two users to confirm certain information without ever revealing what such information is. This is the basis for confirming transactions protected from sight while having the strong guarantees of trust provided by adequate blockchain systems.
ZCash also allows transparent transactions that are visible, fundamental to be accepted by Gemini. In more regulated scenarios, ZCash must be deposited using transparent transactions. ZCash has been criticized for this feature because having some private and other transparent transactions, it calls attention to private transactions.
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