Cryptocurrency transfer technology represents the way cryptocurrency transactions are verified and processed by computers on the blockchain network itself. This technology can be quite complex, depending on the type of cryptocurrency being used, but it’s important to understand if you’re ever planning on using or investing in cryptocurrency in the future. Here are 10 things you need to know about this revolutionary form of digital transaction technology
Bitcoin is a cryptocurrency and worldwide payment system that operates on a peer-to-peer basis with no central authority, such as banks or governments. It’s the first decentralized digital currency without an intermediary. Bitcoin has been in use since 2009, and it was launched in 2010 by an individual or group using the pseudonym Satoshi Nakamoto. Bitcoin uses peer-to-peer technology for transactions and communication. The bitcoin blockchain is used for transactions and storing bitcoin identity information.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
Litecoin is a peer-to-peer internet currency, which enables instant, near-zero cost payments to anyone in the world. It is open source, global and not managed by any central authority. Litecoin provides faster transaction confirmations (2.5 minutes on average) and uses a memory-hard, scrypt-based mining proof-of-work algorithm to target the regular computers and GPUs most people already have.
4) Bitcoin Cash
Bitcoin Cash is a cryptocurrency that was created in 2017 as the result of a hard fork in the Bitcoin blockchain. With Bitcoin Cash, you will be able to make transactions quickly, reliably and with low fees. Unlike other cryptocurrencies, Bitcoin Cash does not require an address for sending and receiving payments. Rather than using a complicated public key for your address, Bitcoin Cash uses a simple string of text which can be written down or memorized easily by people around the world.
Ripple is a real-time international settlement network that offers cross-border transfer of different currencies. It is not just a cryptocurrency, it is also a payment system. Ripple can be used by banks and financial institutions for international settlements. It can also be used by merchants who want to accept payments in any currency in any country without dealing with the exchange rates or fees that are charged by conventional payment gateways.
Stellar is an open-source protocol for value exchange founded in 2014. It connects people, payment systems, and banks with a goal of improving the world’s economic systems by providing low-cost financial services to fight poverty and develop individual potential. Stellar connects these parties using its own built-in cryptocurrency, lumens (XLM). Lumens are used as a bridge asset between any two currencies or other assets that the network supports.
NEO is a blockchain platform and cryptocurrency which enables the development of digital assets, smart contracts, and other next-generation financial technologies. It also supports decentralized commerce, identification management and digitization of many different types of assets. NEO has been referred to as China’s Ethereum.
EOS is a blockchain protocol that provides developers with a platform on which they can create decentralized applications. It also allows for the transfer of other cryptocurrencies. EOS has been in development since 2017 and its mainnet went live in June 2018. The technical design of EOS borrows heavily from two other blockchains, Ethereum and Bitshares.
Cardano is a decentralized public blockchain and cryptocurrency project that offers a layered system where every transaction is recorded. Cardano was created by Charles Hoskinson, co-founder of Ethereum and BitShares. Cardano is the first blockchain platform to evolve out of scientific philosophy and pure peer-reviewed academic research. Cardano aims to create a platform where smart contracts can be used with different cryptocurrencies such as Bitcoin, Ethereum, Dash, Litecoin and more.
IOTA is a cryptocurrency designed for the Internet of Things. It’s different from other cryptocurrencies because it does not use blockchain technology. Instead, IOTA uses a distributed ledger known as The Tangle. The Tangle is based on a mathematical concept called Directed Acyclic Graphs (DAG). There are no fees on transactions and data transfers.