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Blockchain technology is used by most cryptocurrencies, but not all. The blockchain has the advantage of enabling the distribution of digital information without the threat of copying. Where there is lot of pessimism in the market, there are coins that have survived and continue to survive the test of time from their humble beginnings. They are all here to stay and to co-exist.
Since Bitcoin is the most popular digital currency, blockchain was used exclusively for Bitcoin initially. A wide range of new applications is continuously discovered for it, far beyond financial ones.
A blockchain is a programmable digital ledger. In addition to being programmable, it can also record all kinds of information. It is updated regularly, every ten minutes.
As cryptocurrencies gain in popularity, their numbers are expected to increase further. To begin, let’s consider the four most popular ones namely, Bitcoin, Litecoin, Ethereum and Ripple.
Bitcoin with 21 Million Max Supply
By providing a new payment system without intermediaries or central authorities, Bitcoin paved the way for new payment systems.
For it to work, it is completely dependent on its users. This makes bitcoin one of the earliest digital currencies. Increasingly, Bitcoin is accepted by businesses, clubs, organizations, charitable organizations, and institutions.
Bitcoin’s maximum supply is 21 million and the total number of bitcoins in circulation is around 17 million. Approximately 4 million bitcoins remain to be mined.
Litecoin Was Created in 2011
As an alternative to Bitcoin, Litecoin was created in 2011. Despite its perceived inferiority to Bitcoin, Litecoin has developed innovations at a rapid pace.
Litecoin accepts payments faster than Bitcoin. Bitcoin has a coin limit of 21 million, while Ethereum has 84 million.
The number of Litecoins in circulation far exceeds the number of Bitcoins. Litecoin mining has increased in recent years, proving Charlie Lee’s goal of developing Litecoins has been achieved.
Ethereum was launched in 2015
In 2015, Ethereum was formally launched. Smart contracts and distributed applications can be built on Ethereum. It was a great success when Ethereum offered a pre-sale of Ether in 2014. Following the attack on DAO (Decentralized Autonomous Organization) in 2016, Ethereum was splintered into Ethereum Classic (ETC) and Ethereum (ETH).
Ripple Decentralized Financial System
A Ripple provides individuals as well as communities with the power to create their own money through a decentralized financial system. The initial version of the system was created by Ryan Fugger and called RipplePay.com.
After going through some difficulties, the company decided to keep the name Ripple, which was later granted a license by New York’s Department of Financial Services to issue a virtual currency. Ripple became the fourth company to be granted a BitLicense.
A New York Times article has described Ripple as a cross between currency exchange and Western Union without the heavy fees. Connecting banks, businesses, digital asset exchanges, and payment providers through RippleNet, enables friction-free money transfer around the world. Ripple’s blockchain technology is used by over 100 banks.
They emphasize that their concept is not anti-fiat currency, anti-government, or anti-bank.
In addition to popular cryptocurrencies, there are others with a promising future based on the current trend. Learning how to take advantage of cryptocurrencies depends on the investment goal and the time frame for achieving desired returns. It is a good habit to keep connected to the economy of any cryptocurrency you possess, as the more people use cryptocurrencies, the more the market will grow.
