The Cryptocurrency is the virtual currency designed to works as a medium exchange. The Cryptocurrencies uses cryptography to secure the transactions and to control the creation of additional coins. The Cryptocurrencies are very difficult to counterfeit because of their security feature. Any central authority does not issue the cryptocurrency, and they are perfect for the illegal activities in the Deep web. Bitcoin was the first decentralized virtual cryptocurrency to capture the public imagination.
As of September 2015, there were nearly 14.6 million Bitcoins in circulation across the world with the total market value of $3.4billion. The success of Bitcoin has spawned the number of new Cryptocurrencies like PPCoin, Namecoin, Litecoin and much more. Unlike Governments controlling the value of a currency like USD through the process of printing fiat money, Government cannot regulate Cryptocurrencies, as they are fully decentralized.
History of Cryptocurrency
The Bitcoin was the first decentralized virtual cryptocurrency released by the pseudonymous developer named Satoshi Nakamoto. Bitcoin uses SHA-256, a set of cryptographic function designed by the U.S National Security Agency. Namecoin, the first altcoin was released to form a decentralized DNS to make the Internet censorship very difficult. In October 2011, Litecoin was published, and it became the first Cryptocurrency to use Scrypt as its hash function instead of SHA-256. It gives the ability to people to mine for Litecoins without the purchase of specific hardware like ASIC machines which are used to mine Bitcoins. The Litecoins started to receive media attention in 2013 by reaching a market cap of $1 billion. The success of Litecoin leads to the release of Ripplecoin in 2011, which was built on the same protocol as Bitcoin. Some other Cryptocurrencies also created and they also have been successful because of their technical innovation.
Benefits and Drawbacks of using Cryptocurrency
- Cryptocurrencies make the transaction very easier between two parties. Their transfers will be facilitated through the use of public and the private keys for the purpose of security.
- The transfers are done with the processing fees. Hence it will allow the users to avoid the charging of step fees by various banks and financial institutions.
- As the Cryptocurrencies are virtual and do not have a central treasury, the cryptocurrency balance can be dried out by a computer crash if the backup copy of the holding does not exist.
- The rate at which the cryptocurrency can be exchanged for another currency can fluctuate widely as the cryptocurrency prices are based on supply and demands.
- The main central to the genius of Bitcoin Wallet is the Blockchain. Blockchain uses the online ledger to store the information of the bitcoin transactions. Many experts believe that Blockchain has its principal uses in technologies like online voting and crowdfunding.
- Even though there are many thefts occurred in the cryptocurrency, some of the peoples believe that existence of cryptocurrency will preserve value, facilitates exchange and they are more transportable than the hard metals.
List of Active Cryptocurrencies on the Internet
There are several Cryptocurrencies are created from its starting period. But we listed some of the top and active cryptocurrencies available on the Internet.
|Bitcoin||2009||BTC, XBT||Satoshi Nakamoto|
|Burstcoin||2014||BURST||Burstcoin Community||SHA-256d||Proof of Capacity|
|Dash||2014||DASH||Evan Duffield &|
|X11||POW & Proof of Service|
|Dogecoin||2013||DOGE, XDG||Jackson Palmer|
& Billy Markus
|DigitalNote||2014||XDN||XDN-dev team, dNote||CryptoNight||POW|
|Emercoin||2013||EMC||EvgenijM86 & Yitshak Dorfman||SHA-256d||POW & POS|
|Gridcoin||2013||GRC||Rob Hälford||Scrypt||Decentralized POS|
|MazaCoin||2014||MZC||BTC Oyate Initiative||SHA-256d||POW|
|Monero||2014||XMR||Monero Core Team||CryptoNight||POW|
|Omni||2013||MSC||J. R. Willett||SHA-256d|
|SHA-256d||POW & POS|
|Ripple||2013||XRP||Chris Larsen &|
|Synereo AMP||2014||AMP||Dor Konforty & Greg Meredith||POS||POS|
|Titcoin||2014||TIT||Edward Mansfield & Richard Allen||SHA-256d||POW|
|Zcash||2016||ZEC||Zooko Wilcox||ox Equihash||POW|
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