When the most of this World is busy on blockchain basics, here we bring you the basic information you need to know about the three of the most important cryptocurrencies in the world.
The way cryptocurrency has managed to take over the news over the past few months, it won’t be wrong to assume that almost everyone knows what cryptocurrency is. But for all those who are not familiar with this term, here’s a little introduction for you:
Cryptocurrency is a digital asset which is designed to work as a medium of exchange, in which cryptography is used to secure the transactions, to verify the transfer of assets and to control the creation of additional units. They are also used as alternative currencies or virtual currencies.
Now, we are going a bit deeper and we will introduce you to some of the biggest names in cryptocurrency :
1. Bitcoin (BTC) :
Bitcoin was created in 2009 and which gave birth to all of them. Bitcoin has been wearing the largest market cap among all the other cryptocurrencies. Bitcoin is the first decentralized digital currency that used a peer-to-peer network between users for transactions.
While basically being considered as the most efficient and fast payment method, the growing user base and relatively large block time of Bitcoin have led to the increasing transaction fees and in delays of transactions on the network. These reasons have led to Bitcoin starting to lose the favor to other cryptocurrencies. But in spite of all this, Bitcoin’s long history has still managed to be still wearing the crown and is still is the ultimate cryptocurrency, at least in terms of wealth storage.
Litecoin was founded by the ex-employee of Google, Charlie Lee in the year 2011.Litecoin is usually referred to as the silver to Bitcoin’s gold. Thanks to the faster block time of Litecoin, of around 2.5 minutes as compared to Bitcoin’s 10 minutes, Litecoin has emerged as one of the go-to currencies used today for transactions.The faster block time enables much faster exchanges between users.
The algorithm of Litecoin also makes it difficult to build Application Specific Integrated Circuits (ASIC), the likes of which are used in the mining of Bitcoin. Litecoin has always been criticised for the massive consumption of electricity that goes into mining the cryptocurrency which leads to long-term scalability problems. But by actually eliminating the process of ASIC based mining, Litecoin presents a faster and greener alternative to Bitcoin, when it comes to transactions.
3. Ether (ETH):
Ether has been recently termed as the second largest cryptocurrency in terms of market cap. Ether is used in the Ethereum network, which is essentially a decentralized computing platform upon which ‘smart contracts’ can be executed and created. The use of smart contracts between parties is the main application for this platform. These parties usually require a mediator or an intermediary for the purpose of verification or trust.
The subsequent elimination of middlemen in favor of decentralised authorities and the potential real-world application that can be build using the blockchain of Ethereum have made Ether one of the hottest properties in the business of blockchain and has given rise to the price of Ether massively over the last few months.