Cryptocurrency – a term that has become incredibly important in the mainstream media in recent years due to the proliferation of Bitcoin millionaires. As a result, the new form of currency has gained an almost infamous status. However, as in any major breakthrough, there is still much confusion over the use of cryptocurrencies, what are the different types of innovative electronic money and what they could mean for the future.
Let's put everything to rest while we explain what each of the leading cryptocurrencies can do.
The most popular form of cryptocurrency, Bitcoin was conceived for the first time in 2008 by the elusive and still unknown creator, Satoshi Nakamoto, who published the online white paper.
It took almost a decade for the cryptocurrency to reach its peak, but by December 2017 a single Bitcoin was trading approximately $ 17,000, which meant that anyone with a significant amount of electronic money became significantly rich.
In its early years, cryptocurrency was strictly used as an alternative for cash transactions and mainly for the exchange of goods and services. However, with its increased popularity, its range of uses has expanded, now used for various purposes, including the guarantee of investments for commercial banks, direct debit for subscription services and in particular for sports betting.
The nearest source of Bitcoin competition, Ripple was founded in 2012 under the name "Opencoin", until it was renamed Ripple Labs in 2015. Linking banks, payment service providers, digital resource exchanges and companies through sophisticated payment software called RippleNet, does not actually rival Bitcoin as a substitute for payment for goods and services, but rivals the most popular cryptocurrency based on blockchain.
Intended for banks and payment networks and having been taken over by major banks in recent years, Ripple is a currency exchange and payment remittance service to help the sector. It is used as a system in which it is possible to directly transfer resources, whether money, gold or real-time ownership and, as a result, is a cheaper, more transparent and secure transfer service than the one currently used by banks.
The new form of cryptocurrency we are about to examine, Zcash was initially released in 2016 and has already reached a total market capitalization of $ 634 million. Created to provide more security and privacy for its users than other cryptocurrencies, Zcash's secure coding was based on research by scientists at MIT, the University of Tel Aviv and UC Berkley.
Just like its counterparts, Zcash transaction data is published on a public blockchain, but unlike Bitcoin or Ripple, Zcash also protects your personal and transaction data, ensuring it remains completely confidential. It is because of this increased security that Zcash is used primarily for large sums, especially commercial transactions, thanks to advanced cryptography.
Launched as a direct result of Bitcoin in 2011, Litecoin has been among the most popular contemporaries of cryptocurrency for over half a decade and is often referred to as "the gold for bitcoin gold". Created by MIT graduate and former Google engineer Charles Lee as a peer-to-peer transaction service, it allows you to make payments to anyone in the world.
Litecoin has one of the fastest transaction speeds of any of the cryptocurrencies currently on the market, with confirmations occurring as quickly as two and a half minutes compared to the 10 minutes needed to complete its nearest rival Bitcoin. It is because of this speed that Litecoin is typically used as an alternative for the payment of international goods and services.
Dash, otherwise known as Digital Cash, and formerly called Darkcoin, is the most secretive cryptocurrency that appears on our list.
Offering complete anonymity, Dash works on a decentralized mastercode network that makes almost any transaction that occurs on the platform almost impossible and has achieved an impressive following. As of October, this year Dash had a market capitalization of $ 1.51 billion and the value of a token was trading at $ 181.42
As you can imagine, the currency of money confidently means that any cryptographic platform can sometimes be exploited by some less than recommended means, but is generally used as an alternative to Bitcoin and Litecoin for peer-to-peer transactions.
As you know, Bitcoin undoubtedly leads the cryptocurrency market as the main provider of any number of services, including sports betting, investment guarantees and direct debit for subscription services, offering us a very bright future. However, this does not mean that the other forms of cryptocurrency should be ignored as a result, they all have applauses that make them awesome by themselves, so the next time you use cryptocurrency, consider each of them.
Disclaimer: this article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliated companies, employees, writers and subcontractors are cryptocurrency investors and may from time to time have holdings in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer.