Bitcoin is the world’s first and top cryptocurrency that had gained popularity and a huge increase in value. It was created in 2009 by a person under the alias Satoshi Nakamoto. Its main feature is that transactions can be made without the middleman – meaning that no banks are involved!
You can use Bitcoin to book hotels, pay for Xbox games, and buy furniture. But most of its hype has recently come from people trading it. As of now, its price is $8207.77 whose price used to be past the $10,000 mark in 2017.
Another reason why Bitcoin is amazing is that it can be mined. A person (company or group) can mine Bitcoin through record-keeping and advanced math. This is how it works, when someone sends Bitcoin to someone else, the network records it and then records the other transactions and places them on a “block“.
Miners use powerful hardware and specialized software to convert the blocks into code sequences known as “hash“. Once a new has is made, the miners who found it are awarded in Bitcoin. As of now, miners can obtain 12.5 Bitcoins which worth around $225,000 at this time.
Bitcoin is ranked first because it started new concepts such as “decentralization” and “peer to peer trading.” We would see other cryptocurrencies, such as Ethereum use this concept to help users make apps and trade their currencies at a rate that’s faster than Bitcoin.
Speaking of Ethereum…
Ranked second on our list is Ethereum. Like Bitcoin, Ethereum is running on a public blockchain network. While Bitcoin and Ethereum are completely different in technology, their largest distinction is their difference in capability and purpose.
Ethereum’s blockchain is used to run program code for any decentralized application. Instead of miners obtaining Bitcoin, they receive Ether, the main currency that fuels the network.
Ethereum also has smart contracts, which acts like a self-ran computer program that automatically execute once specific guidelines are met. Since they are running on the blockchain, the code can run without downtime, third party interference, and without censorship.
What makes Ethereum a top cryptocurrency is its ability to let startups create decentralized apps. They can receive funding from other Ether owners to help power their app without the long process of seeking a venture capitalist to invest in them. Ethereum is now priced at $857.70, which we can only expect it to grow due to the development apps on its platform.
Ripple is the third top cryptocurrency on our list. Like other cryptos, Ripple has a distributed ledger network that allows users to help each other validate transactions. This makes it more efficient and faster than traditional centralized authorities.
What stands Ripple apart is its transaction speed. On average, Bitcoin takes about 10 minutes to complete a transaction. Ripple can accomplish this task in under 60 seconds. This makes Ripple more appealing to a mass market, who needs a faster network to help them pay for goods.
Ripple is currently developed by Ripple Labs. As of now, they have of 100 billion XRP available, as its unable to be mined. Ripple’s current price is now $.73, making it the cheapest option on this list.
While other cryptos are used for separating financial transactions from centralized banking, Ripple seems to do the opposite.
To conclude, we believe that each of these cryptocurrencies provides a lot of value into today’s current market. Not only are they bringing in new financial options for users, but their combined technology helps make transactions safer and faster. Ultimately, it will be interesting to see how these cryptocurrencies will act as blockchain technology continues to evolve.
Disclaimer: This post was made to educate users on cryptocurrency. Don’t take it as investment advice.