Cryptocurrencies are systems that enable secure online payments that are categorized into virtual “tokens” that are represented by entries in the system’s internal ledger. At the same time, the term “token” refers to the various encryption algorithms and encryption techniques that protect these entries, such as elliptical curve ciphers, public and private symbol pairs and hash functions.
Types of digital currencies
As mentioned earlier, Bitcoin was the first blockchain-based digital currency, which is still the most famous and also the most valuable in the world, however there are currently thousands of other cryptocurrencies with different functions and specifications. Some of these are just a copy of Bitcoin while others are new coins created from scratch. Today there are over 18 million bitcoins in circulation, with a total market capitalization of around 289 billion (at current market prices)
It’s worth noting that the cryptocurrency of choice used in digital currency today was originally designed for military applications. At some point, however, the U.S. government decided to strictly control encryption, much like legal restrictions on weapons, but civilians’ right to encryption was upheld on the basis of freedom of expression.
Most popular cryptocurrency
Not only have cryptocurrencies changed the world’s expectations for money and financial investments, but they have also evolved their own space since the first bitcoin block appeared in 2009. Since then, thousands of unique digital currencies have emerged. Of these currencies, Bitcoin is still the most popular. In fact, a recent study found that 8% of Americans have invested in digital currencies, and 5.2% of those chose Bitcoin. We are going to review with you some of the most famous digital currencies in the world:
. Bitcoin (BTC)
It’s been more than a decade since Bitcoin introduced its currency into the digital space. Since then, it has remained the most popular digital currency in the world. Bitcoin allows users to easily transfer money from one digital wallet to another. Each transaction is verified by other users and recorded in a public ledger, the so-called blockchain. Some of the most important factors that have contributed to Bitcoin’s popularity include:
high-quality. Despite their volatility, their price has always been high. The value of one bitcoin so far is 16,051 US dollars. This is much higher than other digital currencies.
Big companies are starting to accept bitcoin. Like Microsoft, Overstock.com, and other companies.
Bitcoin is easy to set up and is supported by the world’s most popular exchange and digital wallet platforms such as Coinbase. This makes it easier to get started with “trading”.
Investors have been supporting Bitcoin’s growth for years. Bitcoin has been around longer than any other digital currency. This has enabled him to gain a strong following of investors and enthusiasts.
. Ethereum (ETH(
Next to Bitcoin, Ethereum is most admired among the cryptocurrencies. This cryptocurrency uses the blockchain like Bitcoin, but has a completely different currency. Ethereum is called Ether and, like Bitcoin, is publicly administered by a network of users.
Exclusion of third parties from transactions. For example, you can assume that you have a smart contract for your home. With traditional transactions, you need a broker to helpen helps with the paperwork and broker the deal with the buyer. Although you can transfer ownership of the home to the buyer through smart contracts without the involvement of others. You do not have to act as a broker like a broker.
Transaction speed. No need to wait for the paperwork to be dealt with. Smart contracts are faster and easier because everything is done online. In practice, you can save additional costs.
Transactions can be verified by hundreds of other users. Not only can your transactions be verified, they are also encrypted and stored in the public ledger. This results in a documented record of your transaction that helps back up.
. Ripple (XRP(
While most cryptocurrencies pride themselves on providing fast transactions, Ripple – and its digital tokens known as XRP – are particularly unique in their transaction speed. Ripple only takes 4 seconds to process transactions, making it the fastest compared to Ethereum, which takes 2 minutes, and Bitcoin, which takes a little longer. Traditional currencies can also take a few days to complete.
Ripple works by creating a platform for banks and other payment providers to send money around the world. XRP can be exchanged for any currency. It can be used to convert US dollars, euros, or yen, for example, to Japanese. The ability to send money around the world in seconds enables banks and financial institutions to reach new frontiers faster. The bigger the expansion, the more customers they can serve. Other notable features of the XRP tokens that contribute to their popularity include the following:
An inexpensive way to send money. You can send money across borders in seconds at a relatively low cost without paying high exchange fees and costs.
The presence of prominent institutional investors who support this. For example, Accenture and Google Ventures are investing a stake in Ripple.
It has high scalability. This refers to other faster transactions required for global cryptocurrency competition. According to industry sources, Ripple can process 1,500 transactions per second – more than other cryptocurrencies.
. Litecoin (LTC(
Litecoin and Bitcoin not only have “currency” in common, but also in their name: Litecoin has a blockchain, a public ledger and at the same time a miner to check transactions. However, there are three main advantages of Litecoin. It includes the following:
Processing speed. Litecoin transactions are faster than Bitcoin. In fact, Litecoin processes transactions in around 2.5 minutes, but Bitcoin processing can take up to 10 minutes.
Increase the supply of currency. Litecoin has 84 million BTC, compared to Bitcoin which is 21 million BTC.
Less complex algorithms. Compared to Bitcoin, Litecoin has algorithms that are easier to reverse. This can make transactions easier, and neither do professionals need high tech to solve them like they did with Bitcoin.