This year, the price of bitcoin has soared even for one ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising, leading to cryptocurrencies amounting to more than a hundred billion. On the other hand, the long-term prospects of cryptocurrency are somewhat blurred. Major developers have controversy over the lack of progress, which makes it less attractive both as a long-term investment and as a payment system.
Still the most popular, bitcoin is the cryptocurrency that started it all. It is currently the largest market capitalization, at about $ 41 billion, and has existed for the past 8 years. Bitcoin is widely used worldwide, and it is still not easy to use the weakness of the method it works. Both as a payment system and as value is stored, bitcoin allows users to easily receive and send bitcoin. The concept of the blockchain is the foundation on which bitcoin is based. You need to understand the concept of a blockchain to understand what a cryptocurrency is.
Simply put, a blockchain is a database distribution that stores each network transaction as a block of data called a “block.” Every user has copies of the blockchain, so when Alice sends Mark 1 bitcoin, everyone on the network knows it.
One alternative to bitcoin – Litecoin is trying to solve many of the problems holding back bitcoin. It is not as resilient as Ethereum, and its value is derived mainly from the acceptance of solid users. It should be noted that Charlie Lee, a former Google employee, heads Litecoin. He also practices transparency of what he does with Litecoin, and is quite active on Twitter.
Litecoin has been Bitcoin’s second violin for quite some time, but things started to change in early 2017. First, Litecoin was adopted by Coinbase along with Ethereum and Bitcoin. Next, Litecoin fixed the problem with bitcoins by adopting Segregated Witness technology. This gave him the opportunity to lower the transaction fee and do more. The deciding factor, however, was when Charlie Lee decided to focus on Litecoin and even left Coinbase, where he was director of engineering, only for Litecoin. Due to this, the price of Litecoin has risen over the past couple of months, and the strongest factor is the fact that it can become a real alternative to Bitcoin.
Vitalik Buterin, a superstar programmer, came up with Ethereum that can do all that bitcoin can do. However, its goal, first of all, is to become a platform for creating decentralized applications. The difference between them is in the blockchains. Basically, a bitcoin blockchain records a contract type that indicates whether funds have been transferred from one digital address to another. However, there is a significant extension with Ethereum because it has a more advanced language script and has a more complex and wide range of applications.
Projects began to grow on top of Ethereum when developers began to notice its best qualities. Thanks to the crowd of stores, some have even raised millions of dollars, and it still continues to this day. The fact that you can create great things on the Ethereum platform makes it almost similar to the Internet itself. This has caused a rapid rise in prices, so if you purchased Ethereum for a hundred dollars earlier this year, it won’t be priced at nearly $ 3,000.
Monero is committed to solving the problem of anonymous transactions. Even though this currency has been perceived as a method of money laundering, Monero is committed to changing it. Basically, the difference between Monero and Bitcoin is that Bitcoin has a transparent blockchain with every public broadcast and record. With bitcoin, everyone can see how and where the money was transferred. However, Bitcoin has a somewhat imperfect anonymity. In contrast, Monero has an opaque rather than a transparent transaction method. No one is sold by this method, but since some love privacy for any purpose, Monero will stay here.
Unlike Monero, Zcash is also committed to solving problems that arise in bitcoin. The difference is that Monero, rather than completely transparent, is only partially public in its blockchain style. Zcash also aims to address the issue of anonymous transactions. After all, not everyone likes to show how much money is actually spent on memorable Star Wars stuff. Thus, it can be concluded that this type of cryptocurrency does indeed have an audience and demand, although it is difficult to note which cryptocurrency that is privacy-focused will eventually come out on top.
Also known as a “smart token,” Bancor is a next-generation cryptocurrency standard that can hold more than one token in reserve. Basically Bancor is trying to simplify the trading, management and creation of tokens by increasing their liquidity level and allowing them to automate the market price. At the moment, Bancor has a product that includes a wallet and a smart token creation. The community also has features such as statistics, profiles and discussions. In a nutshell, the Bancor protocol allows you to detect the embedded price as well as the liquidity mechanism of smart contract tokens through the innovation reserve mechanism. With a smart contract you can instantly eliminate or purchase any token in the Bancor reserve. With Bancor you can easily create new cryptocurrencies. Now who wouldn’t want that?
Another competitor to Ethereum, EOS promises to solve the problem of scaling Ethereum by providing a set of tools that are more reliable for running and building applications on the platform.
Alternatively, Ethereum Tezos can be upgraded by consensus without much effort. This new blockchain is decentralized in the sense that it is self-governing by creating a true digital community. This facilitates a mathematical method called formal verification, and has the function of enhancing the security of the most financially weighted, sensitive smart contract. Definitely a big investment in the coming months.
It is incredibly difficult to predict which bitcoin will be the next superstar on the list. However, user acceptance has always been a key success factor when it comes to cryptocurrencies. Both Ethereum and Bitcoin have this, and even if the list has great support for each cryptocurrency, some have yet to prove their safety. However, they need to be invested in and monitored in the coming months.