Comparison Between Cryptocurrencies

Written by Jvalin Sonawala

16/10/2021

The name Cryptocurrency refers to any digital currency that can be traded between individuals or groups. There are several well known currencies that have been taken up as Cryptocurrency. Amongst them are Litecoin,etherium, Ethanol and Monero. Some of these currencies are in regular daily trading whilst others are not. As we move forward, there are new Cryptocurrencies being developed which are very exciting.

cryptocurrency

Vertically speaking, the most popular among Cryptocurrencies is the bitcoin. It is widely recognized and accepted as the preeminent mode of transfer of funds amongst Internet Marketers and other individuals who transact through online transaction. With the exception of a few countries like India, Singapore and the United Kingdom, most of the businesses and people still prefer using the cash based exchange. This is because of a few reasons. One is that, using the traditional money based exchange would involve a trust factor between the buyer and seller where as the latter would be able to interact with no third party and therefore is more protected from any possible fraud.

In order to understand the characteristics and features of some other upcoming cryptocoin such as etherium and bitcoin one should first of all understand how they work. Their distinctive feature is that they are both decentralized and p2p (peer to peer) based. While the former allows for the users of these currencies to conduct trades freely without involving any third party or an establishment of a central authority, the latter facilitates the exchange of currency without involving any third party. Both of these traits would pave way for the growth of their respective market share.

There are two types of Cryptocurrency namely the centralized and decentralized. The former enables for the safe transfer of funds over the public network of networks like the World Wide Web while the latter permits users to conduct trades in a private network. There is also a third kind known as Peer-to-peer which enables users to transact in currencies without ever needing the assistance of any financial institution. The latter two would be further classified into three further categories named Monero, Dash andetherium. The main goal of each of these is to provide users with a highly secure and private form of money transmission thereby ensuring better consumer protection.

The main characteristic that differentiates ether market capICO along with other leading Cryptocurrency like bitcoin is that the latter offers a much higher market cap compared to the former. The reason behind this is that ether has been able to execute faster and stronger transaction rates and has thus become the leading mode of payment by most traders. Another important quality that distinguishes ether market capICO from other competing currencies is that the former tokenises all currency in the world thereby making it easier for other investors to trade in the same market.

Like other leading Cryptocurrencies, bitcoin is also very new in its basic structure. Unlike ether, which has been around for quite a while, bitcoin has seen an incredible growth in its transaction volume during the past few months. There are also several other benefits of using this form of Cryptocurrency compared to other Cryptocurrences. One key advantage that distinguishes bitcoin from its competitors is that unlike them, a buyer can transfer value with the use of this token without ever needing to rely on a central authority or a financial institution.

In order to transfer value between two parties, users will first need to find an active merchant over the internet. With the presence of a decentralized ledger known as the bitcoin protocol, all transactions that are made on the network are transparent and therefore accessible to anyone. While the decentralised ledger system allows users to transact in relative anonymity, there is still a strong reliance on a central authority in the form of a government or a corporation. In the case of ether, one would need to search a centralised authority to buy ether or sell ether. With the presence of a decentralized network, this process does not apply. In fact, anybody who wishes to purchase or sell ether can do so without ever needing to rely on a single entity.

This makes ether slightly different from other competing cryptocurrences such as Namecoin, Litecoin, and Dash. For example, Namecoin relies on a weighted distribution and works best with lower circulation numbers. The problem with this is that while it is easy for someone to create a digital currency based on a successful platform, the same cannot be done for a new cryptocurrence. On the other hand, with a good backend infrastructure such as those used in Dash and bitcoin, a lot of business professionals are trying to create a new alternative to the old markets. Therefore, it is quite possible that as the competition increases, the value of cryptosporces like bitcoin and ether will increase in order to remain at the top.

You May Also Like…

0 Comments