The scientific and technical development of the modern world, as well as the universal availability of information and communication tools, have become the impetus to the development and brought electronic money to the top of commodity-money relations. A further improvement was the emergence of digital money. These are popular types of cryptocurrencies that exist only in the memory of many computers connected by a single network.
In comparison with ordinary money, they do not have a single issuing centre or a course management body, their lists, or state. Everything is built solely on the complex process of creating each new unit of virtual money, using it to buy or sell anything. The initial value of a digital asset is determined by the “Proof-of-work” approach, that is, evidence of the work done to create it. The process of the emergence of new coins (mining) is a complex set of calculations, built on cryptography.
Further success of Bitcoin led to the fact that a lot of similar digital money emerged and flooded the market eventually. Currently, there are more than 20 different kinds of digital currencies. Some are less popular and some are known worldwide already. Further, we’re bringing you the list of top 13 cryptocurrencies that exist now, aside of Bitcoin.
Zcash (ZEC) uses a new technology, including a method of proof with zero disclosure, which allows someone to prove something (for example, that he owns more than 10 ZEC) without disclosing confidential information (for example, the total number of ZECs belonging to him). Anonymous transactions made with this technology in Zcash are called “shielded”. This contrasts sharply with Bitcoin: if your Bitcoin address is publicly available, everyone can view your balance, as well as with which addresses you have ever interacted with.
Ethereum is a decentralized platform with smart contracts: applications that work exactly the same as programmed without any possibility of downtime, censorship, fraud or third-party interference. These applications run on a customizable blockchain, an extremely powerful common global infrastructure that can move value and represent property owners.
This allows developers to create markets, keep registers of debts or promises, transfer funds in accordance with instructions given in the past (for example, by will or futures contract) and many other things that have not yet been invented, all without any person or counterparty risk.
Ripple is a large-scale currency system, with which you can make an instant money transfer, regardless of which currency you need to transfer and to which particular point in the world. To date, XRP is actively trying to establish cooperation with banks in order to introduce into everyday use a more economical and efficient way to conduct financial transactions around the world. The main idea, on which the entire basis of the ripple is based, is that in the modern world, the world of technology, currency transfers are made as instantly as the exchange of information data online. The XRP system differs from other tokens primarily in the absence of a chain of blocks when performing transactions.
Bitcoin Cash is electronic money used in p2p networks. Bitcoin Cash is completely decentralized, does not use the services of central banks and does not require trusted third parties. This is the exact definition of Bitcoin because Bitcoin Cash is a fork of Bitcoin, obtained by splitting its blockchain into two different versions. This separation can happen with any blockchain, but this fork was made by a group of people who disagree with how the bitcoin blockchain should evolve in the future.
Cardano is a decentralized platform that provides reliable and scalable comprehensive programmable transfer of value. ADA is one of the first blocks to be built in the highly secure Haskell programming language. ADA is a targeted technology designed to create a new decentralized economy and democratize finance in emerging markets. It will allow you to create and run decentralized applications and contracts in an inexpensive, secure and scalable way.
Litecoin is a blockchain-based digital asset that works similarly to Ethereum and bitcoin. It is a peer-to-peer online currency that allows you to instantly receive almost zero payments to anyone in the world. This is a decentralized payment network that is not operated by any central authority. The network, like other blockchains, is provided by mathematics. Individuals can control their own finances without relying on third parties, such as banks or traditional financial institutions.
The Litecoin.org website describes how a currency does not want to work as an alternative to bitcoin, but as an additional force:
“Thanks to substantial industry support, trading volume and liquidity, Litecoin is a proven commerce tool that complements Bitcoin.”
One of the first advantages Lightcoin has over Bitcoin is its higher transaction volume, blockchain generates blocks more often, which means that transactions can be processed faster.
NEM is a blockchain Smart Asset. It is more than a digital asset, it is a platform for data management. This is the easiest and most economical way to bring blockchain technology to your business. NEM or the New Economy Movement is a community-oriented cryptocurrency that traverses the XEM symbol. NEM was originally launched as an Nxt plug, but its creators eventually coded a completely new platform from scratch. The alpha version of the project was launched on June 25, 2014, and the first stable release took place on March 31, 2015.
The platform is unique for its 1-minute block time, its POI algorithm and its multi-valued accounts, among other unique innovations. Today, NEM blockchain software has been implemented in applications outside of cryptocurrency. It is best known for being used, for example, in a commercial blockchain called Mijin, which is currently used by financial institutions in Japan and around the world.
Stellar presents itself as the “future of banking” and seeks to become a decentralized payment system for making money transfers from country to country and from currency to currency. At the same time, Stellar does not plan to go to war with the existing centralized financial structures. He intends to make a revolution in the world of payments peacefully - entering into partnerships with central banks and integrating cryptocurrencies into the existing financial ecosystem. In order for central banks to want to deal with him, he needs to become a better Ripple, in whose image Stellar was once created using the cloning method and against the background of which it still looks weaker.
NEO is a non-profit blockchain project that uses blockchain technology and digital identification to digitize assets, to automate digital asset management using smart contracts, and to implement a smart economy with a distributed network. Founded in 2014 as Antshares and renamed NEO in July 2017. While Antshares focused on digital assets, the rebranding of Antshares to NEO also shifted the company's focus on smart contracts. The project team seeks to transform the traditional economy into a so-called “smart economy”.
IOTA is a new, open source distributed register that does not use a blockchain. Its innovative new quantum-protected protocol, known as Tangle, generates unique new features, such as:
Initially, IOTA is focused on serving as the basis of Internet broadcasting (IoT). To send an IOTA transaction, the user device must simply acknowledge two other transactions on the Tangle. To confirm these two transactions, the device performs a simple proof, which is essentially just a series of mathematical tasks. These math problems can be performed on virtually any modern device, including laptops and telephones.
Dash is a decentralized digital currency and an open payment system designed to ensure high anonymity of transactions. Today it is in the top ten of electronic currencies and has a very high share of capitalization in excess of two billion dollars. The price of one Dash coin is now about $700.
The main characteristics of Dash digital asset include:
According to the official website, Monero is “a safe, confidential, untraceable currency”. Some might think that this definition applies to bitcoin, but in terms of confidentiality and the impossibility of tracking it is not. Monero is a digital currency that uses a different type of cryptography to provide these characteristics. Overall Monero is an impressive digital currency, with interesting technologies behind it.
TRON is a decentralized protocol based on a blockchain to create an entertainment system worldwide with free content thanks to distributed storage technology and a blockchain. Using the TRON protocol, users can publish and store data. Using the autonomous decentralized form, they can choose how to distribute data. The form also allows you to subscribe and push content by releasing and then distributing digital assets.
To wrap this all up it should be said that in today’s world new digital money types emerge now and then, however, to get to the top you need to have something special to stand out. All of the tokens mentioned above are special each in its own way and different from Bitcoin, even though some of them emerged as a fork of the latter, each of them is worth the attention.