We continue to study all the new things the world of crypto and blockchain.
Today, we will try to learn a little more about the three most famous crypto-currencies at the moment. And this is bitcoin, ripple and ethereum.
Coins are monetary units that are used in various crypto-money systems.
As we all know, just such a crypto currency as bitcoin is the ancestor in the constantly evolving world of electronic monetary units. Without exaggerating it can be said that bitcoin is the standard for all other advanced copies of electronic currencies. The monetary unit is called bitcoin (BTC).
This is the first distributed crypto currency, invented by the founder of the cryptocurrency system.
Let's recall its advantages:
- full anonymity, security and privacy of all users
- absence of intermediaries in any transactions
- complete independence from any authorities regulating payment systems
- high speed of operations, low price
All transactions conducted in the bitcoin system are carried out with the help of the block system, and for security purposes and for proving transparency, the history of all operations is public. Everyone who uses bitcoin can follow the price changes for several years, the history of all his payments.
It is interesting that the initial 50 bitcoins were produced back in 2009, respectively, and the first operation occurred at the same time. Of course, bitcoin may have its drawbacks. Approximately, since the summer of 2017 the system has undergone minor reforms, however, in general, the essence of the work has remained unchanged. The developers make every effort to eliminate any bugs (defects and errors).
It is important to know that the bitcoin price depends on the base of supply and demand. If you follow the history of this course, you can find out that the dynamics of growth or decline depends on people who have large stocks of bitcoin, as well as currency fame. It is most convenient to relate bitcoin to the dollar. Initially, the rate of BTC (bitcoin) against USD (dollar) was only 1 USD ~ 1 309. Now it is very hard to believe, as the situation has changed dramatically. As early as 2016, one bitcoin cost about thousands of dollars!
Many believe that it is the etherium has all chances to overtake bitcoin on the e-currency exchange. And, probably, it may, because the possibilities of this system are truly limitless! The monetary unit is called ether (ETH).
A feature of this currency is the ability to conclude "smart" (from English smart) - contracts. What is it? These are programs that are in the system, in which the algorithm with the duties of both parties concluding the contract is prescribed in advance. Thus, the etherium enabled users to remove intermediaries, which would guarantee the fulfillment of duties. A lawyer, for example, can be replaced by an algorithm. As a result, we save money, time and we have a guarantee of security for both sides.
Naturally, all this is based on the system of blockchain that we all heard about. Accordingly, all the features that we observed in bitcoin also remain in etherium, such as viewing payment history, security, anonymity and reliability. Also, the platform supports the possibility of passive income with the help of mining.
In 2016 there was, so-called, hardfork of this currency, so the etherium classic (ETC) was formed. At the moment, everything has stabilized, and the broadcast is still growing.
It is very convenient that when exchanging the etherium it is not necessary to convert the ether into bitcoins, you can immediately display all the conventional fiat, like dollars and euros.
Let's sum up the features of the etherium system:
- smart contracts, which allow to exclude from the chain of our operations one more intermediary
- ease of output and exchange of etherium
- still, maximum security, reliability and confidentiality of all operations
- The minimum commission cost.
Ripple - a platform launched in 2012, which currently competes with the Etherium for the second place in the market. It s purpose is also the same, it is to simplify remittances. The monetary unit is called ripple (XRP).
The developers claim that the ripple is something completely new, since all the work is not based entirely on blockchain. Only certain principles that are really important for crypto-currency have remained common.
The peculiarity of this system is the most cheap currency exchanges and the speed of execution of all transactions. On average, it outruns the first two crypto-currencies of our list by 100-250 times, as the payment confirmation time is much lower due to the less busy and more optimized algorithm. Financial organizations and ordinary Internet users are connect to this platform precisely because of these qualities.
Ripple has three intrasystem programs, each of which is responsible for a separate type of payments.
- xCurrent, responsible for international transfers.
- xRapid, intended for intra-market transactions
- xVia is what allowed to work not only with banks, but also with ordinary companies.
A large number of coins and focus on the entrepreneurial, banking sector gives a competitive edge to this cryptocurrency . The system does not support mining, because all coins have already been issued and are included in the money turnover.
So, we learned about the key crypto currencies that are relevant today. I hope that each user could learn something new for himself. It is worth remembering that every day the number of different crypto-currencies is growing, but not all are realized and recognized. Many have already chosen a suitable system and crypt for themselves, and some have begun to develop their own system and cryptocurrencies and we are waiting for these developments.
Lets keep pace with the times, because it's convenient!