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Understanding the Uses of Different Types Of Cryptocurrencies

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Cryptocurrencies – a term which has become incredibly prominent in the mainstream media during recent years due to the proliferation of Bitcoin millionaires. As a result, the new form of currency has earned an almost infamous status. However, as with any major step forward, there is still much confusion regarding the use of cryptocurrencies, what different types of innovative electronic cash exist and what they might mean for the future.

We’re putting all of this to rest as we explain what each of the leading cryptocurrencies can do.

Bitcoin

The most popular form of cryptocurrency, Bitcoin was first thought up in 2008 by the elusive and still unknown creator, Satoshi Nakamoto, who published the whitepaper online.

It took almost a decade for the cryptocurrency to reach its peak, but in December 2017 a single Bitcoin roughly exchanged for the price of $17,000, meaning anyone who held a substantial amount of the electronic cash became significantly wealthy.

In its early years, the cryptocurrency was strictly used as an alternative for cash transactions, and predominantly for trading goods and services. However as it has increased in popularity, its range of uses has also widened, now deployed for a variety of purposes including acting as collateral for investments at merchant banks, a direct debit for subscriptions services and most notably for sports betting.

Ripple

Bitcoin’s closest source of competition, Ripple was founded in 2012 as ‘Opencoin,’ until it was renamed to Ripple Labs in 2015. Connecting banks, payment providers, digital asset exchanges and corporates via its sophisticated payment path software called RippleNet, it doesn’t actually rival Bitcoin as a substitute of payment for goods and services, but it does rival as the most popular cryptocurrency based on the blockchain.

Intended for banks and payment networks and having been picked up by leading banks in recent years, Ripple is a payment settling currency exchange and remittance service to aid the sector. It is used as a system where you can directly transfer assets, whether it be money, gold or property in real-time and as a result is a cheaper, more transparent and secure transfer service than what is currently used by banks today.

Zcash

The newest form of cryptocurrency we’re set to examine, Zcash was initially released in 2016 and has already amounted a total market capitalisation of $634 million. Set up with the purpose to provide enhanced security and privacy for its users compared to other cryptocurrencies, Zcash’s secure coding was based upon on the research of scientists from MIT, Tel Aviv University and UC Berkley.

Much like its counterparts, Zcash’s transaction data is posted to a public blockchain but unlike Bitcoin or Ripple, Zcash protects your personal and transaction information as well, ensuring that it remains completely confidential. It is due to this increased security that Zcash is primarily used for large sums, specifically business transactions, due to its enhanced cryptography.

Litecoin

Launched as a direct result of Bitcoin in 2011, Litecoin has been among the most popular cryptocurrency’s contemporaries for over half a decade and has often been referred to as the ‘silver to bitcoin’s gold’. Created by MIT graduate and former Google engineer Charles Lee as a peer-to-peer transaction service, it allows you to make payments to anyone around the world.

Litecoin has one of the fastest transaction speeds of any of the cryptocurrencies currently on market, with confirmations happening as quickly as two and a half minutes compared to the 10 minutes it takes its closest rival Bitcoin to complete. It is due to this speed that Litecoin is typically used as an alternative for paying for international goods and services.

DASH

Dash, otherwise known as Digital Cash, and previously named Darkcoin, is the most covert of the cryptocurrencies to appear on our list.

Offering complete anonymity, Dash works on a decentralized mastercode network which makes any transaction that occurs on the platform almost untraceable and has gained an impressive following as a result. As of October, this year Dash had a market cap of $1.51 billion and one token’s value roughly exchanged to $181.42

As you can imagine, the confidentially of the currency does mean it as any crypto platform can sometimes be exploited for some unsavoury means, but it is generally used as another alternative to Bitcoin and Litecoin for peer to peer transactions.

As you know Bitcoin undoubtedly leads the cryptocurrency market as the main provider for any number of services including sports betting, collateral for investments and direct debit for subscription services providing us with a very bright future to look forward to. However, this doesn’t mean that the other forms of cryptocurrency should be disregarded as a result, they all have plaudits of their own that make them impressive in their own right, so next time you come to use cryptocurrency, consider each of them.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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