2018 has been the year of cryptocurrencies. The sudden increase in the market value of many popular cryptocurrencies and then an even more sudden crash got everyone talking about the future of money.
2018 has been the year of cryptocurrencies. The sudden increase in the market value of many popular cryptocurrencies and then an even more sudden crash got everyone talking about the future of money. The market is still completely unstable, and no one knows how the situation is going to look like at any given moment. Some are skeptical about their promises, others are more optimistic. But even though there is no unified opinion on the matter, there is no doubt whether cryptocurrencies are here to stay or not. They undoubtedly are.
There are many cryptocurrencies, and the market is growing every single day. But there are only a few that define what digital money is all about. If you are a newbie and want to learn what blockchain is and why cryptocurrencies matter then you should read a blog post we wrote earlier. Once you get that out of the way, you can dive right into the world of digital money. So, for all the curious people that want to know about popular cryptocurrencies and what makes them special, here is a list with the most powerful currencies in no particular order.
We will start with the cryptocurrencies of the cryptocurrencies — Bitcoin. It is the first and the most powerful cryptocurrency on the market. Created in 2009 by the anonymous Satoshi Nakamoto, it has introduced the world to digital money. Critics of Bitcoin criticize it for everything — for its speed and high transaction fees. So, by no means, it is not the best currency for when it comes to its functionality. However, despite its numerous problems, it is still one of the most valuable and powerful digital currencies.
Pros:
– The first cryptocurrency with the largest following among developers, investors, and people
– Easy to access and purchase
– Accepted by major corporations (and the most talked about currency)
Cons:
– Slow transaction speed
– High transaction fees
– Difficult to mine new coins
Shortly known as Ether it is the second most powerful and popular cryptocurrency today. What makes Ether different is that it is not simply a currency. It is a blockchain-based platform using which you can build applications and projects. Bitcoin, in contrast, is only used for more conventional transactions.
The best thing about Ethereum is that unlike Bitcoin it has a dedicated team that works on the development of the currency and a unified community. People within the community agree in which direction they want to take Ether, and that makes it more stable and faster. People have a lot of faith in Ether, and that is a big deal for a market that does not make any promises.
Pros:
– Can be used to build applications and other platforms
– Very fast transaction speed
– The majority of ICOs for other blockchain projects are launched using Ethereum
Cons:
– Problems with maintaining and scalability
– High competition (the technology is used by many other currencies already)
– Only supports one coding language
Even though IOTA has a lower market value than some other popular cryptocurrencies mentioned in this list, it certainly does not take away from how special it is. It was founded in 2015 and is the only digital currency that does not use blockchain technology. It is built upon the system called ‘Tangle.’ The currency has focused on building a technology that can be used for transactions in the ‘Internet-of-Things’ (IoT) era. If you are not familiar, IoT stands for a technology that would allow communication between objects that have sensors via the Internet. In other words, IOTA positions itself as the cryptocurrency of the future.
Pros:
– Zero transaction fees
– Promises no issues with scalability
– No current competition
Cons:
– Unpredictable (it relies on the success of the IoT which could be the technology of the future)
– The ‘Tangle’ system it uses might have security problems
– Might face competition from the companies that already develop IoT technologies.
Ripple wants to solve problems related to the International Payment Transfer. Unlike other currencies, it mainly focuses on making international digital payments cheaper and faster. What also differentiates it from other currencies is that 50% of the currency is owned by the company that has developed the cryptocurrency. It is unusual since one of the main principals of digital currencies is decentralization.
Pros:
– Cheaper and much faster international transactions
– Clear usage
– Has ties with institutions, and global corporations
Cons:
– Not decentralized (the Ripple Labs own half of all the currencies)
– Competition from in-house technologies developed by institutions and banks
– More limited in its performance
Those were just a few of the popular cryptocurrencies. Of course, there are many and many more, such as Bitcoin Cush, Litecoin, Cardano, Stellar, and EOS to name a few. According to some estimations, there are currently over 1600 cryptocurrencies, and the list keeps growing every single day.
But they are not as different as one might think. Most digital currencies use and improve upon technologies employed by the cryptocurrencies covered above. Usually, even their performance, principles, and, frankly speaking, problems, resemble each other. So much so that by understanding one, and looking at its market value, you can guess how other currencies from its family are doing.
Cryptocurrencies are still a largely unexplored space. Many development companies do not touch upon it because of how challenging it is. But we are not scared of those challenges. At Digitec we offer blockchain technology development services that will help you also integrate and develop cryptocurrency solutions to your website and applications. Let us know about the project you have in mind by contacting us with any questions, ideas, or questions you might have. We will be happy to help you navigate the slightly intimidating space of digital currencies.
Shaghik Gevorgyan
Maryam Israelyan
Shaghik Gevorgyan