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Cryptocurrency of the Futures

gandra | Published on the sat Jul 07, 2018 11:16 pm | 2355 Views

Basic info about Bitcoin - Bitcoin Cash- Dash- Ethereum- RIPPLE- Litecoin and IOTA

Bitcoin, Litecoin, cryptocurrencies, mining... It seems like these new words are popping up everywhere in recent months. In part, the cryptocurrency boom is due to the fact that historically they have shown much higher profitability than the traditional dollar or euro.

But there are actually a number of reasons why cryptocurrencies are so popular. They are safe, anonymous, and completely decentralized. Unlike conventional currencies, they are not controlled or regulated by any particular authority, and their flow is completely determined by market demand. They are also nearly impossible to forge, thanks to a highly complex code system that encrypts each transmission, providing complete anonymity and security for every user.

Although Bitcoin is practically the only cryptocurrency discussed most of the time, there are actually many different cryptocurrencies available (in fact, very many).

So let's take a closer look at the major ones.

Bitcoin and Bitcoin Cash

Bitcoin is the digital currency that is stored in the unique payment system of the same name, where there is no controlling body and all participants are considered peers. Bitcoins can be used to make purchases and transfers if the recipient agrees to receive Bitcoin and is able to do so. The main idea behind bitcoin is complete decentralization: neither the central bank, nor the government, nor any other administrative organization can influence or control Bitcoin.

As for Bitcoin's profitability, it is legendary.

This isn't surprising – after all, a Bitcoin was sold for 0.003 dollars in the very beginning, and now it is traded at around USD 6700.

Bitcoin Cash is a new currency that emerged from a hard fork of the Bitcoin on August 1, 2017. It is a more scalable replication of the original blockchain with individual blocks increased to 8 MB.

The way a fork works is that instead of creating a new blockchain from scratch, the fork creates a duplicate blockchain with the same history.

What this actually means is that all owners of pre-fork Bitcoins are now owners of the same amount of Bitcoin Cash, since both cryptocurrencies had the same blockchain up until the moment of the fork. Right after its release, Bitcoin Cash was worth about USD 700, but it stabilized in the USD 700-730 range in the following days.

Dash

Dash ("Digital Cash") is a decentralized open payment system that uses an algorithm called Darksend to keep transactions anonymous. This currency has been renamed twice, from Darkcoin in 2015 and Xcoin in 2014.

It offers all the possibilities of Bitcoin, as well as instant and completely anonymous transactions through so-called Masternodes.

Masternodes mix up the transaction data to erase all of its tracks, and then get a percentage of the transaction value.

The main differences between Dash and Bitcoin are:

Decisions about the further development of the system are made collectively by all members of the Dash network through Decentralized Governance, instead of being decided by individual programmers.

The value of this cryptocurrency passed the $2.5 billion mark in July 2018.

Ethereum

Ethereum is a platform for creating decentralized online services based on a blockchain that uses smart contracts. It is implemented as a single decentralized virtual machine.

Developed by 19-year-old Vitalik Buterin, this cryptocurrency raised 18 million dollars in its ICO in August 2013 and was launched in July of 2015.

Unlike other cryptocurrencies, its creators do not limit the role of the Ether to payments but offer it as a means for exchanging resources or registering transactions of assets using smart contracts. In particular, its developers have called the Ether a "crypto-fuel" for smart contracts.

The Ethereum technology makes it possible to register any transactions with any assets using a blockchain-type distributed database of contracts, without resorting to traditional legal procedures. This possibility provides competition for the existing transaction registration system. According to The Economist magazine, the technology of "smart contracts" marks a new era in financial technologies.

Developers can issue tokens or units of their currency over a blockchain network.

In 2017, Ethereum grew by 4000% and became the second-largest cryptocurrency after Bitcoin. These days Ethereum is moving around $460.

RIPPLE

Ripple is a distributed payment system that uses the same cryptocurrency (XRP) as the internal payment unit.

First of all, we need to clarify that Ripple is not a Bitcoin clone and Ripple technology is based on a completely different concept, called the "principle of trust".

XRP is similar to BTC:

XRP also has advantages over BTC:

As of 2017, Ripple is ranked the fourth cryptocurrency in terms of market capitalization, second only to Bitcoin and Ephereum. The current price for one XRP is $ 0.462798

Litecoin

Litecoin is a peer-to-peer internet currency that includes nearly zero-cost payments to anywhere in the world.

Litecoin is a fork of Bitcoin, as they were the same cryptocurrency until 2011.

The emission of Litecoins, as with Bitcoins, is algorithmically limited. The maximum amount of Litecoins that will go into circulation is four times greater than the maximum number of Bitcoins (84 million versus 21). The initial reward for each block is 50 Litecoins. Litecoin blocks are formed 4 times faster than Bitcoin blocks. Their pace of emissions and compensations will be similar over time.

About 3/4 of all Litecoins will be generated in 2020.

Will cryptocurrencies be the new norm after 2017? It might be too early to judge. There is one thing we know for certain – cryptocurrencies are going to be on the minds of experts and ordinary people for a long time.

Don't forget that the first real thing bought using Bitcoin was a pizza sold for 10,000 bitcoins. In 2009, the owner of a pizzeria decided to believe in the cryptocurrency and traded the pizza for a pittance.  This decision brought him at least $4,000,000 and set off a major financial revolution.

If you believe in the potential of cryptocurrency and blockchain technology if you want to secure a place for yourself in a future where cryptocurrencies reign, and if you want to witness the origins of a new financial system, then it is best to invest now.

The price for one Litecoin on July 08.018 is moving around $78.20 - $78.27

 IOTA (MIOTA)

There are literally thousands of varieties of cryptocurrencies available today to suit any preferences, but the only one talked about is Bitcoin, with the rare exception of Ethereum.

However, the industry has plenty of interesting representatives.

The assumption is that in the future, "things" will become active participants in business, as they will be able to interact and communicate among themselves, reacting to and influencing the processes taking place in the world, without human intervention.

These things may need to perform transactions with each other. This is exactly why the cryptocurrency IOTA was created. In order to fully understand the differences between cryptocurrencies, you need to have a general understanding of how they work.

The well-known Bitcoin uses blockchain technology. This is a continuous chain of blocks of information that is formed according to certain rules. IOTA's main innovation is an alternative to the blockchain that is called Tangle. It involves a new distributed ledger architecture – effectively, a new version of the blockchain. You could call this system a "blockchain without blocks and chains" (semantically, Tangle is blockchains).

The blockchain almost always functions without a central administrator to configure the network nodes, which means that the architecture of the blockchain is not just distributed, but decentralized. In this regard, it is essential to the blockchain that all participants share a single view of the transaction ledger. To solve this problem, Bitcoin uses consensus node blocks. They are handled by miners (people who use the computing power of their PC to process transactions), who get a portion of cryptocurrency in return. 

IOTA doesn't have any "blocks" per se. Instead, each transaction refers to two past transactions. This transaction reference is treated as approval: with your transaction, you explicitly confirm that the two transactions and the Tangle are valid and comply with the protocol rules. And IOTA doesn't have miners, either!

Instead of leaving the smaller part of the network (just the miners) responsible for the general consensus, the entire network of active participants (i.e., devices that make transactions) directly participates in the approval of transactions. As a result, a consensus is no longer separated from the transaction process in IOTA: it is an integral part of it, and this is what allows IOTA to scale without any transaction fees.

Let's look at the most important features of IOTA:

If you believe in the potential of cryptocurrency and blockchain technology if you want to secure a place for yourself in a future where cryptocurrencies reign, and if you want to witness the origins of a new financial system, then it is best to invest now.

How much IOTA (MIOTA) is worth today (08.09.018):


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