This year, the value of bitcoin has risen even after an ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising, which brings cryptocurrencies worth more than one hundred billion. On the other hand, the long-term prospects for cryptocurrency are somewhat blurred. There are quarrels about the lack of progress among major developers, which make it less attractive as a long-term investment and as a payment system.
Still the most popular, bitcoin is the cryptocurrency that launches all this. It currently has the largest market capitalization of about $ 41 billion and has existed for the past eight years. Bitcoin is widely used around the world, and so far it is not easy to exploit the weakness in the method it works. Both as a payment system and as a stored value, Bitcoin allows users to easily receive and send bitcoins. The blockchain concept is the foundation on which Bitcoin is based. It is necessary to understand the concept of a blockchain in order to understand what cryptocurrencies are.
Simply put, a blockchain is a database distribution that stores each network transaction as a block of data called a “block.” Each user has copies of the blockchain, so when Alice sends 1 bitcoin to Mark, everyone on the network knows.
An alternative to Bitcoin, Litecoin tries to solve many of the problems that hold Bitcoin. It is not as durable as Ethereum, whose value stems mostly from the acceptance of solid users. It is worth noting that Charlie Lee, a former Google employee, runs Litecoin. He also practices transparency with what he does with Litecoin and is quite active on Twitter.
Litecoin was Bitcoin’s second fiddle in a long time, but things started to change in early 2017. First, Litecoin was adopted by Coinbase along with Ethereum and Bitcoin. Litecoin then corrected the Bitcoin problem by adopting Segregated Witness technology. This allowed him to reduce transaction fees and do more. The deciding factor, however, was when Charlie Lee decided to focus solely on Litecoin and even left Coinbase, where he was the engineering director, for Litecoin only. As a result, the price of Litecoin has risen over the past few months, with its strongest factor being the fact that it could be a real alternative to Bitcoin.
Vitalik Buterin, the superstar’s programmer, invented Ethereum, which can do everything Bitcoin can. However, its purpose is primarily to be a platform for building decentralized applications. Block chains are where the differences between the two are. In principle, the Bitcoin blockchain records a type of contract that specifies whether funds have been moved from one digital address to another. However, there is a significant extension with Ethereum, as it has a more advanced language script and has a more complex and wider range of applications.
Projects began to sprout at the top of Ethereum when developers began to notice its better qualities. Through symbolic sales to the crowd, some have even raised millions of dollars, and this is still a continuing trend to this day. The fact that you can create wonderful things on the Ethereum platform makes it almost like the Internet itself. This has led to a price jump, so if you bought Ethereum for $ 100 earlier this year, it won’t be valued at nearly $ 3,000.
Monero aims to resolve the issue of anonymous transactions. Even if this currency is perceived as a method of money laundering, Monero seeks to change that. In general, the difference between Monero and Bitcoin is that Bitcoin has a transparent blockchain with every public and recorded transaction. With bitcoin, everyone can see how and where the money was transferred. There is some somewhat imperfect anonymity of bitcoins, however. In contrast, Monero has an opaque rather than transparent transaction method. No one is sold this way, but since some people love privacy for any purpose, Monero is here to stay.
Unlike Monero, Zcash also seeks to solve the problems that Bitcoin has. The difference is that instead of being completely transparent, Monero is only partially public in its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, not everyone likes to show how much money they actually spent on Star Wars souvenirs. Thus, the conclusion is that this type of cryptocurrency really has an audience and demand, although it is difficult to determine which cryptocurrency that focuses on confidentiality will eventually come out on top of the pile.
Also known as the “smart token”, Bancor is a new generation standard for cryptocurrencies that can hold more than one token in reserve. In general, Bancor seeks to facilitate the trading, management and creation of tokens by increasing the level of liquidity and allowing them to have an automated market price. Bancor currently has a product up front that includes a wallet and the creation of a smart token. The community also has features such as statistics, profiles and discussions. In short, the Bancor protocol allows the discovery of a built-in price as well as a liquidity mechanism for smart contract tokens through an innovative reserve mechanism. Through a smart contract, you can immediately liquidate or purchase any of the tokens in the Bancor reserve. With Bancor you can easily create new cryptocurrencies. Now who wouldn’t want that?
Another competitor to Ethereum, EOS promises to solve the problem of scaling Ethereum by providing a set of tools that are more stable for launching and building applications on the platform.
An alternative to Ethereum, Tezos can be upgraded by consensus without too much effort. This new blockchain is decentralized in the sense that it is self-governing by creating a true digital community. It facilitates a mathematical technique called formal verification and has features to increase the security of the most financially weighted, sensitive smart contract. Definitely a great investment in the coming months.
It is incredibly difficult to predict which bitcoin on the list will become the next superstar. However, consumer acceptance has always been one of the key success factors when it comes to cryptocurrencies. Both Ethereum and Bitcoin have this, and even if there is a lot of support from the early adopters of each cryptocurrency on the list, some have yet to prove their continued strength. However, they are the ones you need to invest in and be careful about in the coming months.