Humans of Blockchain ™
There are more than 1500 cryptocurrencies in the market as of date, and the numbers keep on rising. This makes a person want to gain more knowledge on what actually these cryptocurrencies do?
That requirement starts from the top as it does in many more concepts other than cryptocurrencies. Below, we explain the usage for the top 10 cryptocurrencies in the market today.
#10 – DASH
DASH as the name implies is “Digital Cash.” The cryptocurrency wants to establish itself for the main retail market as a medium for transferring value between merchants and consumers. DASH has instant confirmation times for its transactions an integrated privacy structure which can mask users’ wallet balances and transactions, similar to a traditional banking system. DASH boasts one of the largest networks with almost 5,000 nodes, as well as dozens of merchants worldwide that accept the coin. The major decisions which involve development for the project and the team are taken by the coin holders.
#9 – Stellar Lumens (XLM)
Stellar is the decentralised version replacing Ripple. While both cryptocurrencies offer the same functionality, Stellar serves its community with fast remittances which have lower transaction fees. Another factor which is attributed to XLM is Micropayments. The appeal for XLM is driven through its business partnerships which include IBM and Deloitte as major partners. IBM is working on a cross border payments network that would use XLM.
#8 – NEM (XEM)
One of the major definable characteristics for NEM is its Proof-of-Importance (PoI) approach towards the Network. PoI is a Proof-of-Stake (PoS) hybrid that, rather than give incentives for holding, like traditional PoS, rewards nodes for spending NEM. Another feature provided here is the use of a private ledger for internal transactions, which is being tested by Japanese Financial Institutions.
#7 – IOTA (MIOTA)
The factor that separates IOTA from most virtual currencies is that it is not operated on a Blockchain. Yes there is no mistake here, IOTA has implemented its ledger operations through a network known as “Tangle.” The goal here is to act as an intermediary for communication between various entities in an Internet-of-Things (IoT) Environment. In the future, the aim is to integrate into a methodology for communication between smart devices, however at the moment IOTA earns major points for its “zero-fee” transactions.
#6 – Litecoin (LTC)
Litecoin is Silver when compared to Bitcoin’s Gold. It is one of the oldest altcoins in the market with its main usage being as a testnet for Bitcoin. Many features and network updates are tested on LTC first such as Segwit, which was tested on Litecoin first before being implemented on the main Bitcoin Network. When Bitcoin struggled, Litecoin gained support as a potential alternative to Bitcoin.
#5 – Cardano (ADA)
Cardano is branded as a third-generation cryptocurrency, seeking to create an environment that is inviting for developers and doesn’t require expert blockchain knowledge. ADA carries computer science scholars and Ethereum Co-Founder Charles Hoskinson as part of its immersive team. Cardano was a conjunction between the Ethereum Fork, Ethereum Classic.
#4 – Bitcoin Cash (BCH)
Bitcoin Cash is the fruit of a Bitcoin Fork and labels itself as the true “Bitcoin.” On August 1, 2017, everyone who held Bitcoin received an equal amount of Bitcoin Cash. The cryptocurrency is mainly supported by a few people, Angel Investor Roger Ver, Bitmain Executive Jihan Wu, and Craig Wright. BCH has pledged to solve Bitcoin’s scaling issue by implementing a block size of 2 MB, double than that of Bitcoin currently.
#3 – Ethereum (ETH)
Ethereum adds new features to Blockchain technology through Smart Contracts and Decentralised Applications (DApps). ETH also provides a robust development friendly ecosystem for developers to build on the Blockchain. However, the most widespread use for Ethereum is for ICOs, where developers can build transferable tokens using the ERC20 token standard. These tokens are administered through the ETH Network by Smart Contracts, which are later traded and transacted on the Ethereum Blockchain.
#2 – Ripple (XRP)
Ripple seeks to provide banking networks with cheap, efficient and precise transaction solutions using the RippleNet Technology. Unlike the vast majority of cryptocurrencies, Ripple is centralized, minted and distributed through the Ripple company. Ripple boasts over 100 partners on its network, including American Express.
#1 – Bitcoin (BTC)
Bitcoin was created as a response to the global financial crisis in 2008, and is now the grandfather of all cryptocurrencies. Bitcoin’s main use case was to transfer value in a Peer-to-Peer (P2P) Network which transfers the wealth and power from centralised institutions such as financial and government authorities to individuals. The autonomy is provided by a decentralised money supply which is not being controlled or lies in the jurisdiction of a ventral governing body. Active developments such as Lightning Network seek to bring Bitcoin closer to achieving its original goal.
Node – A node is a device on a blockchain network, that is in essence the foundation of the technology, allowing it to function and survive. … Each cryptocurrency has its own nodes, maintaining the transaction records of that particular token. Nodes are the individual parts of the larger data structure that is a blockchain.
PoI – Proof of Importance Explained. Proof of importance is a blockchain consensus algorithm that was first introduced by NEM. Proof of Importance is the mechanism that is used to determine which network participants (nodes) are eligible to add a block to the blockchain, a process that is known by NEM as ‘harvesting’.
PoS – Proof of Stake (PoS) concept states that a person can mine or validate block transactions according to how many coins he or she holds. This means that the more Bitcoin or altcoin owned by a miner, the more mining power he or she has.
PoW – A proof of work is a piece of data which is difficult (costly, time-consuming) to produce but easy for others to verify and which satisfies certain requirements. Producing a proof of work can be a random process with low probability so that a lot of trial and error is required on average before a valid proof of work is generated. Bitcoin uses the Hashcash proof of work system.
IoT – The interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data.
ICO – An initial coin offering (ICO) or initial currency offering is a type of funding using cryptocurrencies. Mostly the process is done by crowdfunding but private ICO’s are becoming more common. In an ICO, a quantity of cryptocurrency is sold in the form of “tokens” (“coins”) to speculators or investors, in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ethereum. The tokens sold are promoted as future functional units of currency if or when the ICO’s funding goal is met and the project launches. In some cases like Ethereum the tokens are required to use the system for its purposes.
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