Cryptocurrency technology is subject to the use of blockchain. Bitcoin is open-source, because, since you change its open-source and manage to convince several users of its employment, a new virtual currency is born. But do you know what the differences between each of them are? We present today the main advantages and disadvantages of the world’s most popular cryptocurrencies, according to Mike Orcutt of MIT Technology Review.
It can be said that it was the real driver of a technological revolution. It was born as an innovative network of payments and a new type of money in 2009, prophesying the future of blockchain. Bitcoin, at present, gets to a market value of about 133,546 million euros. Its biggest benefit is that it is the original cryptocurrency. Bitcoin is the main and most established blockchain. However, the growing demand for this currency has made its transactions more expensive.
Also, your system can only process about seven transactions per second and consumes large amounts of electricity due to its consensus protocol.
It is one of the most utilized cryptocurrencies. He was born three years later and now has a market value of 26,217 million euros. Among its biggest incentives is helping financial institutions to settle cross-border payments more quickly and economically. This allows Software for trading crypto transactions to be carried out in a much more agile way than in Bitcoin and Ethereum.
On the contrary, it is often criticized that it is not decentralized enough at the time of operation.
It appeared last year following a fork of Bitcoin and is already valued at approximately 15,566 million euros. With it, the Bitcoin software was accustomed to knob larger business volumes. But, like Ripple, this currency is too centralized.
This cryptocurrency of 2011 has a value of 8,193 million euros. It is a Bitcoin duplicate but develops transactions four times faster. Of course, for this, Litecoin needs a lot of energy, preventing it from becoming the ideal means of payment.
It is by now appreciated at 4,833 million euros, produced in 2017. This cryptocurrency only serves as a payment and transfer platform, so it stands out for its privacy and regulatory compliance. It is quite similar to Ethereum, but with the difference that it uses a consensus protocol of participation test and consumes less energy. However, the biggest disadvantage likely is that there is still not much information about this new currency.
Eos also appeared last year and already accounts for some 3,523 million euros in market value. Like Cardano, it will use a proof of participation protocol instead of the proof of employment. And this, in theory, will make transactions faster and more efficient.
Although it is near to raising further 819 million euros within an ICO, the task cannot be evaluated until the system has been launched.
Neo was created in 2014, currently esteemed at 4,751 million euros. It can boast of being the largest cryptocurrency in China and accepts smart contracts with goals similar to those of Ethereum. Its creators say it allows up to 1 0.000 transactions per second, a number much larger than the 15 transactions of Ethereum. Like other cryptocurrencies like Bitcoin Cash or Ripple, it is too centralized.
With a market value of 4,588 million euros and born in the same year, it is known for being a fork of Ripple. The difference is that a non-profit organization manages it. The biggest disadvantage? Stellar faces great competition and must compete with the dominant platform of the traditional banking system, SWIFT.
In turn, in 2014 appears Monedero, valued at approximately 3,523 million euros. This currency uses a type of digital signature that allows any member of a blockchain chain to make a transaction without revealing their information. It is a way to allow users to make transactions privately and more equal. Probably the biggest problem is that, due to its characteristics, it is usually linked to Monedero with cybercrime.
Valued at about 3.150 million euros, it does not use a blockchain but a shared accounting book based on a mathematical structure called a directed acyclic graph. Its objective is that the currency is used by Internet devices of things to buy, sell, and market data. Against it, it should be noted that numerous crypto experts have questioned the general security of this system.
Conclusion: Currently, there are approximately 600 cryptocurrencies with different blockchain mechanisms for each. Cryptocurrency can have benefits, but there are some limitations also.