Overview of the Most Common Cryptocurrencies

Cryptocurrency is defined as an encrypted, peer-to-peer (P2P) network used to mediate or facilitate digital bartering. Despite growing interest in technology, cryptocurrencies have not replaced traditional money, known as fiat currency. And that type of seismic shift isn’t likely any time soon. However, one fact remains clear: cryptocurrencies have the power to change how internet-connected global markets interact with each other.

Various types of cryptocurrencies are available on the digital market. Without a doubt, Bitcoin is one of the world’s most popular cryptocurrencies — a technological trailblazer that has been disrupting the largely unchanged financial payment system.[1]

The most common cryptocurrencies:

Bitcoin

Bitcoin is well known as the undisputed king of cryptocurrencies. Its popularity has risen impressively over the last 12 years.

When transacting using the Bitcoin platform, users’ names and identities are not disclosed. Instead, only their public key address is made available. A private key address is necessary to utilize Bitcoins that are associated with a public key.

For many people, the concept of a blockchain is rather vague, but it can be understood as a digital ledger of transactions that is duplicated across a network.

The Bitcoin blockchain is a permanent ledger on which anyone can see how many bitcoins are associated with a public address.

Bitcoins are mined on a blockchain network, and they are created when miners successfully mine Bitcoin blocks. Cryptocurrency mining is critical to maintaining the ledger of transactions upon which the cryptocurrency is based.

The bitcoin supply is limited. The system is pre-programmed to allow for only 21 billion bitcoins. This limited supply of Bitcoins is designed to solidify their value.

Ethereum

Ethereum provides a public blockchain platform with smart-contract functionality, which is a computer protocol designed to digitally facilitate, verify, or enforce the performance of a contract. It offers a kind of decentralized virtual machine[2] for peer-to-peer smart contracts and tends to use its own self-anchored cryptocurrency, known as Ether (ETH).[3]

Every 12 seconds, on average, a new Ether block is added to the blockchain with the latest transactions that the network has processed. The computer that generated this block is then awarded 5 ETH.

Ripple (XRP)

Ripple (XRP) is the largest bank-targeted blockchain protocol. With its low fees and efficient systems, it was designed with the goal of overtaking Bitcoin and becoming a mainstream cryptocurrency.

Ripple provides a financial settlement arrangement to various banks, allowing them to perform direct transactions across international borders.

Ripple’s protocol has been accepted and championed by various banks and financial institutions such as Euro Exim Bank in London and Banks in Japan or Kuwait. By the year 2019, over 200 banks and payment companies have been associated with Ripple in the U.S.A, Europe, Brazil, and the Middle East. Most of the banks have adopted Ripple’s xCurrent Software to make cross-border payments. This niche acclaim has given Ripple which may be categorized as something of a head-start, and it has already been greenlit by the SEC.

Litecoin

Litecoin first entered the cryptocurrency space in 2011, and it utilizes the L symbol. Since Litecoin is governed by peer-to-peer (P2P) technology, it boasts instantaneous payments around the world.

Litecoin has historically maintained a high liquidity rate.

TTN

TTN also goes by the name of Titan Coin. One of this cryptocurrency’s noteworthy features is its instant eligibility for cross-border transactions.

Like its cryptocurrency competitors, TTN also harnesses P2P technology. However, investors tend not to favor TTN—partly because of its low value.

Dogecoin

Dogecoin is memorably associated with its Shiba Inu mascot. It is a variation of Litecoin that offers a shorter blockchain creation time.

Compared to other cryptocurrencies, Dogecoin has are greater number of coins in circulation. It met its target of mining about 100 billion units in 2015, which is one of the main reasons why investors hope to see future growth for this cryptocurrency. Because Dogecoin does not appear to have a supply limit, it is known as an “inflationary cryptocurrency.”[4]

Dash

Dash is another cryptocurrency derived from Litecoin. In its initial years, it was called “Dark.” This crypto is run with the help of “masternodes” that help increase its transaction speed through the unique “InstantSend” functionality and untraceable ones through “PrivateSend”.

The main attraction for Dash is its high level of privacy and fast transaction speed. These features are behind its market cap of around 2.4 billion.

Ox

Like other cryptocurrencies, Ox offers a novel trading feature called decentralized trading that allows developers to build their own cryptocurrency exchanges.

Ox is based on the Linux operating system, which can be downloaded for free and is open-source. One of the Ox’s unique features is that it uses smart contracts throughout its infrastructure, combining strategies like state channel & AMM (Automated market marker which aids in overcoming of problems such as high cost. These features ensure that Ox maintains to be a secure and high-quality product.

References:

[1] Peter D. DeVries, “An Analysis of Cryptocurrency, Bitcoin, and the Future.” International Journal of Business Management and Commerce, Vol. 1, No. 2 (September 2016).

[2]A virtual machine (VM) is an operating system or application environment installed through software that imitates dedicated hardware for users. See <http://searchservervirtualization.techtarget.com/definition/virtual-machine> [Accessed September 21, 2016].

[3] What is Ethereum? <https://ethereum.org/en/what-is-ethereum/ > [Accessed on November 4, 2020].

[4] Top brokers Staff, “The Basics of Cryptocurrency: Types of Cryptocurrencies.” August 6, 2017.

[5] Will Warren & Amir Bandeali, “Ox: An open protocol for decentralized exchanged on the Ethereum blockchain”, Ox Project, (February 2017).