From the start of this century, the demand for digitization and automation became their new saga. More and more innovative means are deployed so that people can go for paperless technology. People want to use new ways of technology to achieve efficiency, effectiveness, and error-free transactions.
When Bitcoin has come into existence, it became the very first and new face of digital money. Bitcoin was the first cryptocurrencies that attracted people’s attention because of its ease of use, free from regulation and another outstanding reason was its works on cryptography. This highly encrypted system is hard to imitate.
But there is no stop to technology. When one technology comes to the surface, it became the building block to another alternative technology. Though Bitcoin was the first and foremost and still rule the market graph, there are also many other cryptocurrencies that one needs to know before using anyone.
Bitcoin alternatives
- Litecoin
It is first in the list because of its continuity.
Though it is in seventh place in terms of market capitalization, it is more like Bitcoin. One can say that the second wave of Bitcoin. Litecoin also works on an open-source network, but the working algorithm is different from Bitcoin. The blockchain arrangement is shorter, which helps in speedy transactions. Hence, the transaction in Litecoin is faster than in Bitcoin. Litecoin is also known as the ‘lite’ version of Bitcoin. It was produced in 2011. There are also fixed amounts of Litecoin present in the market, amounted to 84 million, which is much bigger than Bitcoin, which amounts to 21 million. The price of Litecoin is low, maybe that also reason for investment. It is also called the silver side of cryptocurrencies, whereas Bitcoin is called the gold side of cryptocurrencies.
- Ethereum
Ethereum took the second largest position after Bitcoin in market capitalization. It came into existence around 2015. It uses a smart contract program with open source blockchain programming. This technology is better and faster. The transactions are processed in seconds. Ethereum is not limited, unlike Bitcoin. The scope of Ethereum cryptocurrency is vast and can increase manifold in the future. It is used for trading and can also use for running digital applications, also known as dapps, which helps individuals directly deal with other individuals for transactions like buying and selling coins. Ethereum works with global computers together forms the supercomputers. The main benefit of smart contracts programs is they work on programming conditions. That reduces the chances of fraud and errors.
- Ripple XRP
Ripple XRP also dominates the market standing in the fourth position. It is the combination of a Real-Time Gross Settlement system, currency exchange, and remittance network. It was created in 2012. It works on XRP that helps in cross border transactions with the financial institutions. Though it is somewhat regulated, the use of Ripple is increasing. The main feature is account validation from banks, which helps in enlisting fraud. Apart from speedy transactions, a person needs not to pay for service charges, whether transacting locally or globally. Its main aim is to facilitate transactions like sharing information.
- Bitcoin Cash
It was launched in 2017 by the Bitcoin programmer. The main difference is the uses of the number of blocks are lesser in comparison to Bitcoin technology, makes not only the speedy transaction but also the more transaction in a row. The wait time is also shorter because of the lesser number of blocks. The cost of the transaction is also lower in comparison to the original Bitcoin. The current demand for this cryptocurrency says that the future is not limited.
- Monero
It came into existence in 2017. The main feature of this cryptocurrency is privacy. Those who believe in financial privacy and payments can go for this type of currency. It is a decentralized form of currency with interchangeability. In this network, anybody can do the transaction, but no one can view the source code. The transactions are entirely safe and blocked. Any country’s economic condition also does not affect the price value. These currencies also gain black market attention because of high confidential technology.
- EOS
There is no full form provided by the creator. It is based on the most powerful software architecture used in blockchain programming. It allows the person to develop, host, and execute. It is more like an application where the user can hold the coins and enter the application and manage the business process by using network resources. This currency’s main disadvantages are repetitive transactions, no spam protection, and slow speed because of limited network resources.
- Tether
It was launched in 2014. It is the fourth largest currency in terms of market capitalization. It is also called stablecoin currency because it is produced to smooth out the price. It is not fluctuated by the market price that attracts the customers. This currency is the best for those who don’t want to take the risk of high and low. One can also do the transaction in traditional currency.
- Zcash (ZEC)
It was released in 2016. It was originated from the ZeroCoin project. It uses zero-knowledge cryptography that helps in unknown transactions. With Zcash, a sender can perform two types of transactions that are transparent transaction and shielded transaction. In transparent selection, the sender and recipient’s information are visible, whereas, in the shielded selection, all the information regarding amounts and names is hidden. Zcash has 21 million coins in circulation like Bitcoin.
- Bitcoin SV
Another version of Bitcoin. Bitcoin SV is a further division of Bitcoin Cash. The main difference is lesser block size, which results in speedy transactions. The main features of this cryptocurrency are smart contract language, merchant service, and micropayments. Bitcoin SV supports the four pillars of ecosystems that are stability, scalability, security, and safe instant transactions.
- Stellar
It was launched in 2014. It works on an open-source network for trading the money between two persons. The idea behind this currency is connecting financial institutions and the blockchain. The main feature of this type of cryptocurrency is international transactions can be done in any currency. Stellar became the popular choice of cryptocurrency among the investors and also good for diversification.
Summary
Bitcoin’s first of its arrival in Cryptocurrency very popular even today, that It has set the benchmark for other similar cryptocurrencies to arise in the market. The main purpose behind the Bitcoin was speedy and error-free transactions without any third-party intervention. It is a form of decentralized currency that is not regulated by central authorities. Bitcoin is still leading the market by the biggest market capitalization ratio. The main emphasis behind cryptocurrencies is the blockchain technology.
Right now, there are thousands of types of cryptocurrencies available, which to choose is still the debate. Facebook Giant is also planning to launch the currency called LIBRA. Facebook has covered a vast customer base. The users of Facebook are also waiting for its launch. The analyst viewpoint also says that maybe the upcoming currency changes the market ratio. Though after Bitcoin came to surface, many people and programmers tried to develop the cryptocurrencies, subject to risk and economic changes.