When it comes to cryptocurrency, the first thing that comes to mind is Bitcoin. Best Multi Cryptocurrency Wallet even if they don’t fully understand it. But besides bitcoins, there are about a thousand types of other digital money created with the help of different software development services. How do they work?
Currently, these are the top five cryptocurrencies after Bitcoin:
Ripple has a market capitalization of nearly $24 billion. For comparison purposes, Bitcoin is almost $310 billion. This cryptocurrency was released in 2012 and has been making strong inroads into the banking industry and payment networks. Ripples code was written from scratch, under the order of venture funds with their main mission to increase the speed and save money on banking. Ripple technology is already being used by Bank of America, HSBC. Unlike Bitcoin and Ether, Ripple cannot be “mined”. This is a centralized system where all digital money already exists and belongs to one company – Ripple Lab.
Ethereum is challenging to understand, even for the experts. The currency appeared in 2015, with funds collected by Buterin, through crowdfunding and combines the blockchain technology of Bitcoin with a programming language. Ethereum market cup is $57.6 billion with almost 114 million coins issued. At the time of this writing, one “ether” cost $510 per unit, which is much cheaper than Bitcoin.
Litecoin has a market cap of $4.5 billion. Charles Lee, a former Google employee, released Litecoin in 2011. This cryptocurrency is very similar to Bitcoin.
Litecoin offers several enhancements when compared to Bitcoin, including a higher limit on the maximum number of coins, improved user interface, and faster transaction approvals.
If in Bitcoin blocks are created every 10 minutes, then in Litecoin it happens faster – every 2.5 minutes. That is why Litecoin can process more transactions than in the Bitcoin system. The amount of cryptocurrency is limited, and cannot exceed 84 million units. At the moment, you can buy one Litecoin for $68.42 and there are 65.9 million coins issued.
Dash was started in 2014 as XCoin. You may have heard of XCoin or Darkcoin before they were rebranded to the name Dash. Dash market cap is $890 million. Dash transactions are arguably more private than those of the previously mentioned currencies. Inputs from multiple users are needed to complete a transaction. Multiple identical outputs are also generated. These identical inputs and outputs shield the location and identity of the true parties.
The Nem cryptocurrency appeared at the end of 2015. Unlike most cryptocurrencies, it has its own unique code. But the most important difference is that Nem works using the POI (proof of importance) algorithm technology. Nem has a market cap of $1.4 billion.
The POI algorithm used in Nem combines the concepts of these two algorithms. POI not only rewards those with a higher account balance but also takes into account how often transactions are made with other users. Each user is given a trust rating. The higher it is, the more likely you are to receive a reward.
The above is not the entire list of popular cryptocurrencies. There’s more going on in the cryptocurrency world than just Bitcoin. However, Bitcoin is the oldest and most well-known cryptocurrency in existence.
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