Many times we have been discussing the term Cryptocurrency. Even a very little number of peoples has the exact knowledge about it. So this is the platform where you can get the benefit to acknowledge it completely.
Cryptocurrency is a digital payment transfer system that holds the productivity under the supervision of the highly modernized system. Important thing is to know about cryptocurrency is that how it works and what we can do in it. So it is called digital currency also known as virtual currency, tends to legalize exchange purposes, money transfers, trading, and several other matters.
This currency is in the form of codes and has no access to fiat currency. It is needed to transfer digitally from one person to another without the third party’s indulgence. However, it is a peer-to-peer digital method which is secure with end to end encoding method.
As we all know that these cryptocurrencies are many, maybe in Thousands or Millions. But not fully illustrated because of their specific nature. The best trader or whatever a person needs to choose the best cryptocurrency for their specific purpose. Here are the details about Top-popular cryptocurrencies:
Bitcoin, centralized digital currency that is not backed by anything physical. It was originally invented by Satoshi Nakamoto in 2009. It is important to know that this not a stock but a currency. It is a little bit different than something like US Dollar, Euro or Yen which are all backed by specific countries.
But the same idea still applies here and the main reason why that Bitcoin is skyrocketing in value? It is because everyone wants to get their hands on them. Bitcoin is one the most popular and essential cryptocurrency which has a huge circle of its users.
Unlike something like cash which is printed by the government and we can hold them in our hands but Bitcoins are opposite of it. This is digital currency produced in the form of codes, which we cannot hold or feel in our hands. Usually, people use this in trading, transactions and any other exchange method.
Bitcoin relies on something called the Blockchain. A simple way to understand this is to imagine a ledger. Every time anyone buys or sells anything related to Bitcoin which is recorded in this ledger called “Blockchain” and then it is copied hundreds or thousands of times.
Every single hour across multiple computers to make sure that everyone is on the same page. Many Bitcoins are in a specific wallet and vice versa. They are public and are not under the control of any bank and government. It is a completely peer-to-peer network it’s hash algorithm is SHA-256, generated in limitations to hold its mark and importance.
One of the most popular cryptocurrency Litecoin is the open-source decentralized digital currency that enables near-instant borderless transactions. Originally introduced by Charlie Lee in 2011. Anywhere in the world that is backed by industry-leading infrastructure technology and billions of dollars in trade volume and liquidity.
Litecoin is a true and digital secure medium of exchange and value. Much like Bitcoin, Litecoin also runs on something known as a blockchain.
It is the most simplified form of a record of all transactions that are happening on the network that can be viewed by anyone at any given time. That is used to make sure that the network is secure and stable. Originally introduced by Charlie Lee in 2011, having Hash Algorithm Scrypt. This cryptocurrency mainly managed cryptographic protocol and is not supervised by any central authority.
Many people keep hearing about Ethereum, is the second-largest cryptocurrency around the world. Featuring smart contracts, it is a public blockchain based-operating system. It is revolutionary as Bitcoin and Etherem platform has thousands of independent computers running, which means fully decentralized.
Once a program is deployed to the Ethereum network, these computers also known as Nodes. They will make sure it executes as written. If Ethereum is the infrastructure for running adapts worldwide then it’s not a currency only its is a platform. the currency used to incentivize the network is called Ether but more on that later Ethereum’s goal is to truly decentralize the internet. Originally introduced by Vitalik Buterin in 2015, having hash algorithm Ethash.
These XRPs offer banks and payment providers a reliable on-demand option to source liquidity for cross border payments. It is a digital asset for representing the transfer value across the Ripple network, also known as the Ripple net.
Created by a newest based technology company, Ripple’s goal is to connect banks, payment providers and digital asset exchanges to provide a solution for real-time and cost-effective global money transfers. It is a liquidity solution provided by Ripple Labs and designed for financial institutes to use Ripples XRP assets as a bridge currency.
It was originally designed by Arthur Britto, David Schwartz and Ryan Fugger in 2012, having Hash algorithm ECDSA.
In this above discussion, we have tried to cover the main aspects of these currencies. Although they are huge in number, some of these are popular among the rest. These cryptocurrencies are discussed to make the confusion clear among beginners and their users.