Cryptocurrency is internet based digital alternative to traditional currency. Cryptocurrency offers faster and limitless transfer of ownership. It is a better alternative and is more convenient than regular currency and credit/debit cards as it offers better security and privacy due to enhanced cryptography to prevent theft from online hackers.
It offers uniform medium of monetary exchange universally as it adds all the currencies in the world into one as it uses internet. Cryptocurrencies use decentralized control as opposed to the centralized control system used by electronic money and banking systems. It is designed for the purpose of exchanging digital information and control the creation of new coins by cryptography.
The popularity of cryptocurrency is steadily rising and is expected to swell up to 3 billion people in the coming days as 3 billion people use th internet everyday. One can visit coinmarketcap.com to get the real time view of the cryptocurrency market and to keep track of the value of various cryptocurrency prices. The top cryptocurrencies topping the are:
- Bitcoin: Back in 2008,Bitcoin was created as a reward for payment processing work in which users offer their computing power to verify and record payments into a distributed public ledger called blockchain. Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. All transactions are verified and shared in Block chain. Due to this proof-of-work verification system, it is fraud resistant. Bitcoin is the most popular cryptocurrency and is often referred as the first cryptocurrency. It is also the most valuable cryptocurrency in the market.
- Ethereum: Ethereum is a decentralized platform that runs on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. Like Bitcoin, Ethereum is an open-source project built by many people around the world, hence no one controls or owns it. But unlike the Bitcoin protocol, Ethereum was designed to be adaptable and flexible. Hence, it has an advantage over block size limit in Bitcoin. Many other cryptocurrencies are use Ethereum’s system to run there cryptocurrency. It is also amongst the top favorites of the banks who have been looking for ways to adopt blockchain effect.
- Ripple: Ripple works completely differently than other cryptocurrencies like Bitcoin. It is based on real-time gross settlement system that means it works as a currency exchange and remittance network by converting any currency instantly into any other one, without relying on a central exchange. Thus, it has successfully adapted by big banks to their system as it is free of charge for any sort of exchange or trade. Ripple follows a distributed open-source protocol called the Ripple Protocol and its currency is called XRP or Ripples.
- Litecoin: Litecoin is similar to Bitcoin but enables much faster transaction rate. A new block of transactions is verified and added to its ledger roughly every two minutes. Litecoin is the first cryptocurrency to implement proof-of-work scheme and the Scrypt algorithm which were aimed at removing specialized hardware. It is also open-sourced and fully decentralized. It uses transparent forging technology which requires people to send their transactions to the system determined person who will forge the block. Litecoin is stable, has good reputation and is well designed which makes it a low-risk long term investment option. It is also accepted by many independent businesses in a variety of categories.
- Monero: Monero is a secure, private, untraceable currency. It is open-sourced and powered by a distributed peer-to-peer consensus network, every transaction is cryptographically secured. Monero is based on the CryptoNote protocol whose transactions cannot be traced through the blockchain to reveal its sender or receiver. Thus, it offers it’s users full transaction anonymity. Monero has be known for making efforts to be the most anonymous, private and secure cryptocurrency. This has attracted several darknet markets to accept Monero as payment.
The market has seen a significant rise in the number of cryptocurrencies. It has been made possible hugely because the newer cryptocurrencies can adopt and evolve from the open sourced model and protocols of its predecessors. Although cryptocurrencies do not belong to a particular country, it leverages the power of internet to sum them all and provide a uniform platform for transactions with high security. In the future, it is bound to replace the physical currency and cash cards for a better, faster and more secure mode of transaction.