Cryptocurrency Examples

6. Dash 

Dash is an open source peer to peer Cryptocurrency that offers all the same features as Bitcoin but also has advanced capabilities, including instant transactions, private transactions, and decentralized governance. Dash’s decentralized governance and budgeting system makes it the first decentralized autonomous organization.

Dash uses a two-tier architecture to power its network. The first-tie consist o miners who secure the network and write transaction to the blockchain. The second-tier consists of master nodes which enable the advanced features of Dash

7. Monero

Monero is an open source Cryptocurrency created in April 2014 that focuses on privacy, decentralization and scalability. Unlike many Cryptocurrencies that are derivatives o Bitcoin, Monero is based on Crypto note protocol and possesses significant algorithmic differences relating to blockchain obfuscation. Monero experienced rapid growth in market capitalization and transaction volume during the year 2016, partly due to adoption in 2016 by major dark net market Alphabay

8. Zcash

Zcash is a Cryptocurrency that offers secrecy and selective transparency of dealings. Zcash expenditures are published on a public blockchain, but the sender, receiver, and amount of a transaction [may remain private. The Zcash trade symbol, ZEC, is not an authorized ISO 4217. Like Bitcoin, Zcash has a stable entire supple of 21 million units

9.  NEM 

NEM is a peer to peer Cryptocurrency and blockchain platform launched on 31st march, 2015. Written in java, With in C++ version in the works, NEM has a stated goal of a wide distribution model and has introduced new features to blockchain technology such as its proof of importance algorithm, multi-signature accounts, encrypted messaging, and an Eigentrust++ reputation system. The NEM blockchain software is used in a commercial blockchain called Mijin, which is being tested by financial institutions and private companies in Japan and internationally. 

10. BlackCoin 

BlackCoin is a peer to peer Cryptocurrency. BlackCoin uses a proof of stake system and is open source. BlackCoin was created by a developer Rat4, with the goal of proving that BlackCoin’s ways of disabling proof of work is stable of secure.  BlackCoin secure its network through a process called “significant” in a Citibank Whitepaper.

Types of Cryptocurrencies

Cryptocurrency usage has exploded since Bitcoin’s release. Though exact active currency numbers fluctuate and individual currency’ values are highly volatile, the overall market value of all active Cryptocurrencies is generally trending upward. At any given time, hundreds of Cryptocurrencies trade actively.

      1. Bitcoin 

Bitcoin is the world most broadly used Cryptocurrency, and is generally credited with bringing the movement into the mainstream. Its market cap and individual unit value consistently dwarf that of the most powerful Cryptocurrency. Bitcoin has a programmed supply limit of 21 million Bitcoin.
Bitcoin is increasingly viewed as a legitimate means of exchange. Many well-known companies accept Bitcoin payments, though most partners with an exchange to convert Bitcoin into U.S. dollars before receiving their funds.

                                                                                                   

    2. Litecoin 

Released in 2011, Litecoin uses the same basic structure as Bitcoin. Key differences include a higher programme supply limit (84 million units) and a shorter target block chain creation time (two and a half minutes). The encryption algorithm is slightly different as well. Litecoin is usually the second or third most popular Cryptocurrency by market capitalization.



 

   3. Ethereum

Launched in 2015, Ethereum makes some noteworthy improvements on Bitcoin’s basic architecture. In particular, it utilizes “smart contracts” that enforce the performance of a given transaction, compel parties not to renege on their agreements, and contain mechanisms for refunds should one party violate the agreement. Though “smart contracts” represent an important move toward addressing the lack of chargebacks and refunds in Cryptocurrencies, it remains to be seen whether they’re enough to solve the problem completely.

     4. Dogecoin 

Dogecoin, denoted by its immediately recognizable Shiba Inu mascot, is a variation on Litecoin. It has a shorter block chain creation time (one minute) and a vastly greater number of coins in circulation – the creators’ target of 100 billion units mined by July by 2015 was met, and there’s a supply limit of 5.2 million units mined every year thereafter, with no known supply unit. Dogecoin is thus notable as an experiment in “inflationary Cryptocurrency,” and experts are watching it closely to see how its long-term value trajectory differs that of other Cryptocurrency.

     5. Ripple 

Released in 2012, Ripple is noted for a “consensus ledger” system that dramatically speeds up transaction confirmation and block chain creation times – there’s no formal target time, but the average is few seconds. Ripple is also more easily converted than other Cryptocurrencies, with an in house currency exchange that can convert Ripple units into U.S. dollars, yen, Euros, and other common currencies.
However, critics have noted that Ripple’s network and code are more susceptible to manipulation by sophisticated hacker and may not offer the same anonymity protections as Bitcoin-derived Cryptocurrencies.

How Crypto currency work? Contd.....

   

    6. Cryptocurrency Exchanges

Many lesser-used cryptocurrencies can only be exchanged through private, peer-to-peer transfers, meaning they’re not very liquid and are hard to value relatives to other currencies-both crypto-and fiat.

More popular cryptocurrencies, such as Bitcoin and Ripple, trade on special secondary exchanges similar to forex exchanges or fiat currencies. These platform allows holders to exchange their cryptocurrency Holdings or major fiat currencies, such as the U.S. Dollar and euro, and other cryptocurrencies and setting their value- usually less than 1%.

Cryptocurrency interchange plays a valuable role in generating liquid markets for popular cryptocurrencies and setting their price relative to traditional currencies. However, exchange pricing can still be extremely volatile- Bitcoin’s U.S. Dollar exchange rate fell by more than 50% in the wake of Mt.Gox”s collapse, for instance.

    7. The Anatomy Of Cryptocurrency

Although there can be exception to the rule, there are a number of factor that make cryptocurrency so different from the financial systems of the past:

    8. Adaptive Scaling

Adaptive scaling essentially means that cryptocurrencies are built with a number of measures to ensure that they will work well in both large and small scales.

A number of other measures are included in digital coins to allow for adaptive scaling including limiting the supply overtime and reducing the reward for mining as more total coins are mined.

    9. Decentralized

Most currencies in circulation are controlled by a centralized government and thus their creation can be regulated by a third party. Cryptocurrency’s creation and transactions are open source, controlled by code, and relay on peer-to-peer networks. There is no single entity that can affect the currency.

    10. Digital

Traditional currency is defined by a physical object, but cryptocurrency is all digital. Digital coin are stored in digital wallets and transferred digitally to other people’s digital wallets. No physical object ever exists.

    11. Proof of Work

Most cryptocurrencies use of proof of work system. A Proof of work scheme uses a hard to compute but easy to verify computational puzzle to limit exploitation of cryptocurrency mining. Essentially, it’s like a really hard to solve “catpcha” that requires lots of computing power. 

How Crypto currency work? Continued.....

1. 1.       3. Wallets
      
      
      Cryptocurrency users have “wallets” with unique information that confirm them as a temporary owners of their units. Whereas private keys confirm the authenticity of a cryptocurrency transaction wallets lessen the risk of theft for units that aren’t being used. Wallets used but crytocurrency exchange are somewhat vulnerable to hacking -for instance Japan based Bitcoin exchange over its servers.
      
      
      Wallets can be stored on the cloud, an internal hard drive, or an external storage device. Regardless of how a wallet is stored, at least one backup is strongly recommended. Note that backing up a wallet doesn’t duplicate the actual cryptocurrency units, merely the record of their existence and current ownership.
      
      
           4. Miners
      
      
      Miners serve as record-keepers for cryptocurrency communities, and indirect arbiters of the currencies’ value. Using vast amounts of computing power, often manifested in private server farms owned by mining collectives comprised of dozens of individuals, miners use highly technical methods to verify to completeness, accuracy, and security of currencies’ block chains. The scope of operating is not unlike the search for new prime numbers, which also requires tremendous amounts of computing power.
      
      
      Miners’ work periodically creates new copies of the block chain, adding recent, previously unverified transaction that aren’t included in any previous block chain copy – effectively completed those transaction. Each addition is known as a block. Blocks consist of all transactions executed since the last new copy of the block chain was created, usually a few minutes prior.
      
      
      The term “miners” relates to that fact miners work literally creates wealth in the or of brand-new cryptocurrency units. In-fact every newly created block chain copy names with a two-part monetary reward: a newly minted cryptocurrency units, and a variable number o existing units collected from optional traction fees paid by buyers.
      
      
      
      
           5. Finite Supply
      
      
      Although mining periodically produces new cryptocurrency units, most cryptocurrencies are designed to have a finite supply. Generally, this means that miners receives fever new units per new block chain as time goes on. Eventually miners only receive transaction fees for their work.
      
      
      This has yet to happen with any extant cryptocurrency, but observers predict that the last Bitcoin unit will be mined sometime in the mis-22nd century, if current trends continue. Finite supply cryptocurrencies are thus more similar to precious metals, like gold, than to fiat currencies – of which, theoretically, unlimited supplies exist. 

How Cryptocurrencies work?

The source codes and technical controls that support power and secure cryptocurrencies are highly complex. However, laypeople are more than capable of understanding the basic concepts and becoming informed cryptocurrency users

Functionally, most cryptocurrencies are variations on Bitcoin, the first widely used crypto currency. Like traditional currencies, cryptocurrencies’ express value in units – for instance, you say “I have 2.5 Bitcoin,” Just as you’d, “I have $2.50.”

Several concepts govern cryptocurrencies’ values, securities, and integrity.

   

     1. Block Chain

A Cryptocurrencie’s block chain is the master ledger that records and stored all prior transactions and activity, validating ownership of all units of the currency at any given point in time. As the record of the cryptocurrencies entire transaction history to date, a block chain has finite length – containing a finite number of transaction – that increases over time.

Identical copies of the block chain are stored in every node of the crypto currencies software network- the network of decentralized server farms , run by computer- savvy individual or groups of individuals known as miners who continually record and authenticate crypto currencies transactions.

A cryptocurrencies transaction technically isn’t finalized until it’s added to the block chain, which usually occurs within minutes. Once the transaction is finalized, it’s usually irreversible – unlike traditional payment processors, such as payment and credit cards, most cryptocurrencies have no built in refund or chargeback functions, though some newer cryptocurrencies have rudimentary refund features.

During the lag time between the transaction’s initiation and finalisation, the units aren’t available or use by either party. The block chain thus prevents double-spending, of the manipulation of cryptocurrency code to allow the same currency units to be duplicated and sent to multiple recipients

  2. Private Keys

Every Cryptocurrency holder has a private key that authenticates their identity and allows them to exchange units. Users can make up their own private keys, which are formatted as whole numbers between 1 and 78 digits long, or use a random number generator to create one. Once they a key, they can obtain and spend cryptocurrency. Without the key, the holder can’t spend or convert their cryptocurrency – rendering their holding worthless unless and until the key is recovered

While this is a critical security feature that reduces theft and unauthorized use, it’s also draconian – losing your private key is the digital equivalent of throwing a wad of cash into a trash incinerator. While you can create another private key and start accumulating cryptocurrency again, you can’t recover the holding protected by your old, lost key.

What is Cryptocurrency ?

Crypto currencies or virtual currencies are digital means of exchange created and used by private individual or groups. Because most crypto currencies aren’t regulated by national governments, they’re considered alternative currencies – medium of financial exchange that exist outside the bounds of state monetary policy.
                                                     Bit-coin is the preeminent crypto currency and first to be used widely. However, hundreds of crypto currencies exist   and most spring into being every month.
         
Crypto currencies,   supply and value are controlled by the activities of their users and highly complex protocols built into their governing codes, not the conscious decision of central banks or other regulatory authorities. Users who leverage vast amounts of computing power to record transaction   receiving newly created crypto currencies units and transaction fees paid by other user in return are critical to currencies stability and smooth function deal. 
                                                                                                        Importantly, crypto currencies can be exchanged for fait currencies in special online markets meaning each has a variable exchange rate with major currencies e g. U.S Dollar, British pound European euro, and Japanese yen .crypto currencies exchanges are somewhat vulnerable to hacking and represent the most common venue for digital currency.
                             Most but not all, crypto currencies are characterized by finite supply. Their source codes contain instructions outlining the precise number of units that can and will ever exist. Over time, it becomes more difficult for miners to produce crypto currencies units until upper limits is reached and new currency ceases to be mined altogether. Crypto currencies finite supply makes them inherently  deflationary, more akin to gold and other precious metals- of which there are finite supplies – than fiat currencies , which central banks can, in theory, produce unlimited supplies of.
 Due to their political independence and essentially impenetrable data security, crypto currency user enjoy benefits not available to users of traditional flat currencies   such as the U.S Dollar, and the financial systems that those currencies support. For instance, whereas a government can easily freeze or even seize a bank account located in its jurisdiction, it’s very difficult for it to do the same with funds held in crypto currency even if the holder is a citizen or legal resident.