People are getting more and more acquainted with digital currencies that cannot be seen or held in hand per se but can easily and efficiently be used for transactions.
A Cryptocurrency that was brought into this world by a man known by his pseudonym, Satoshi Nakamoto, changed the future of technology and the way we see money forever.
Bitcoin was the first in the line of many virtual currencies that would follow its suit.
Here we’ll be looking at some of the most popular digital assets, and how they work:
Bitcoin development has been no less than a revolution. This digital currency is the most popular one since it was also the very first decentralized Cryptocurrency that we welcomed. To use it is quite a simple process.
You just need a Bitcoin wallet first, where you can store the Bitcoins you purchase. This will give your first address for any future transaction.
You’d need Bitcoin developers to help you with Bitcoin mining – it’s the process of generating a new digital currency or coin. And you’ll be ready to make any online dealings that you want to.
With Ether being your Cryptocurrency, you have Ethereum as your computing platform. It comes with a feature called ‘smart contract’. Ethereum makes decentralized online transactions possible through a digital machine called Ethereum Virtual Machine or EVM.
Every online transaction on this platform takes place with the help of EVM executing peer-to-peer contracts using Ether.
The smart contract functionality in the Blockchain, furthermore, has all the terms clearly specified in it; this makes Ethereum a very secure platform for even complete strangers to transact with each other in a hassle-free manner.
Then we have a Cryptocurrency that is gaining increasing popularity amongst the patrons of digital currencies.
It’s called Dash. Quite similar to Bitcoin, Dash provides more privacy to its users. Its operation over a distributed master code network makes the transaction really hard to trace.
And since CPU mining is not being deemed profitable since some time now, Dash uses XII ASICs for mining purposes.
Another Cryptocurrency that finds glaring similarities with Bitcoin is Litecoin. A peer-to-peer digital currency, it was released under the MIT/X11 license.
The release of a Litecoin and its transactions are all based on open source, just like Bitcoin.
Ripple Transaction Protocol (RTXP), or some people call it Ripple Protocol works using the digital asset by the name of Ripples or XRP. Making real-time transactions take place, RTXP is great if you need low-cost international transactions within a very short amount of time.
Both time and cost efficient, this is open source software and uses a public ledger for bookkeeping purposes. Ripple uses a consensus process for any remittance, settlement, or exchange purposes.
Offering a more simple and secure system for digital transactions, this Cryptocurrency was introduced by Sunny King. Just like the name says, Primecoin has its protocol based on prime numbers.
It involves finding long chains of prime numbers which are unique to this digital currency; this makes it safer, and also makes the mining process simpler.
Largely based on the protocol of Bitcoin, Dogecoin was launched in the year 2013.
There obviously are some unique modifications to this currency, which makes it different from Bitcoin; especially as it uses the script function as a proof-of-work scheme.
There’s no such thing as a maximum number of Dogecoins that can be released at one time.
There’s no limit to that number. But, the block time has been set at 60 seconds.
Dogecoin is especially great if you have to make small transactions because you’ll find many coins that have a very low value which further puts its entry barrier very low.
Another Cryptocurrency that has had Sunny King as one of its developers with Scott Nadal being the other, Peercoin is also called PPCoin by many. Using a process that combines proof-of-work with proof-of-stake, it became the first digital currency to do so.
Peercoin mining takes place through the proof-of-work hashing scheme.
When this hash algorithm starts getting tougher, the users are rewarded with coins. And this rewarding process uses the proof-of-stake algorithm.
The importance of having virtual currencies amongst us cannot be overstated at all. Even some governments around the world have tried their hands at Cryptocurrency transactions. With technology taking such major strides forward, we know that the future we all had been waiting for is here at our doorstep today! So, let’s welcome it wholeheartedly!