Types of Cryptocurrency Explained

Digital currency is meant to figure as a medium of exchange. There are many various sorts of cryptocurrency, but these eight are among a number of the more well-known currencies.

1. Bitcoin (BTC)
One of the foremost commonly known currencies, Bitcoin is taken into account an ingenious cryptocurrency. it had been created in 2009 as open-source software. The author of the whitepaper that established this digital currency was under the pseudonym, Satoshi Nakamoto.

How does Bitcoin work?

Using blockchain technology, Bitcoin allows users to form transparent peer-to-peer transactions. All users can view these transactions; however, they’re secured through the algorithm within the blockchain. While everyone can see the transaction, only the owner of that Bitcoin can decrypt it with a “private key” that’s given to every owner.

Unlike a bank, there’s no central authority within the Bitcoin. Bitcoin users control the sending and receiving of cash, which allows for anonymous transactions to require place throughout the planet.

2. Litecoin (LTC)
Litecoin was launched in 2011 as an alternate to Bitcoin. Like other cryptocurrencies, Litecoin is an open-source, global payment network that’s completely decentralized, meaning there are not any central authorities.

What’s the difference between Bitcoin and Litecoin?

Here are a couple of differences between these digital currencies:

  • Litecoin is believed to feature faster transaction times.
  • The coin limit for Bitcoin is 21 million and Litecoin is 84 million.
  • They operate different algorithms, Litecoin’s being “scrypt” and Bitcoin’s is “SHA-256.”

3. Ethereum (ETH)
Created in 2015, Ethereum may be a sort of cryptocurrency that’s an open-source platform supported blockchain technology. While tracking ownership of digital currency transactions, Ethereum blockchain also focuses on running the programming code of any decentralized application, allowing it to be employed by application developers to buy transaction fees and services on the Ethereum network.

4. Ripple (XRP)
Ripple was released in 2012 that acts as both a cryptocurrency and a digital payment network for financial transactions. It’s a worldwide settlement network that’s designed to make a quick, secure and low-cost method of transferring money.

Ripple allows for any sort of currency to be exchanged, from USD and Bitcoin to gold and EUR and connects to banks, unlike other currencies. Ripple also differs from other sorts of digital currencies because its primary focus isn’t for person-to-person transactions, rather for moving sums of cash on a bigger scale.

5. Bitcoin Cash
Bitcoin Cash may be a sort of digital currency that was created to enhance certain features of Bitcoin. Bitcoin Cash increased the dimensions of blocks, allowing more transactions to be processed faster.

6. Ethereum Classic
Ethereum Classic may be a version of the Ethereum blockchain. It runs smart contracts on an identical decentralized platform. Smart contracts are applications that run exactly as programmed with none possibility of downtime, censorship, fraud or third-party interface. Like Ethereum, it provides a worth token called “classic ether,” which is employed to pay users for products or services.

7. Zcash (ZEC)
Zcash may be a digital currency that was built on the first Bitcoin codebase. Conceived by scientists at MIT, Johns Hopkins and other respected academic and scientific institutions, it had been built on a decentralized blockchain. A core feature and differentiation of Zcash is stress on privacy. While not a function available to investors on Equity Trust’s platform, users can send and receive Zcash without disclosing the sender, receiver or the quantity transacted.

8. Stellar Lumen (XLM)
Stellar lumen is an intermediary currency that facilitates currency exchange. Stellar allows a user to send any currency they own to somebody else during a different currency. Jed McCaleb founded the open-source network Stellar and created the network’s native currency in 2014.

9. Bitcoin Satoshi’s Vision (Bitcoin SV)
Bitcoin Satoshi’s Vision (BSV) is that the results of the 2018 split, or hard fork, of Bitcoin Cash. it’s intended to more closely resemble the first purpose of Bitcoin, particularly decentralization and using cryptocurrency as payments.

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