What Are The Best Alternatives To Bitcoin And Its Derivatives?
With fiat currencies taking a hit across the world, cryptocurrency has gained a lot of momentum. Bitcoin, the one which started the trend, is the most popular and most profitable cryptocurrency in the market. However, with each passing day, bitcoin mining is becoming tougher and tougher. Due to the production of dedicated processing units for the sole purpose of bitcoin mining, big companies are dominating this market. Therefore, its time to know some of the best alternatives to bitcoin and its derivatives. There’s a new player in this market, after the Bitcoin Gold Hard Fork Split. Therefore, thoroughly Understanding Bitcoin Gold And The Philosophy Behind It is essential.
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Best Alternatives To Bitcoin And Its Derivatives
Started in 2016, this decentralized and open-sourced cryptocurrency offers privacy and selective transparency of transactions. Zcash claims to give added security or privacy by keeping transaction details like sender, recipient and amount private. During transactions, users can choose “shield” option, encrypting all the content, using zero-knowledge proof construction called a zk-SNARK.
Started out as a Darkcoin in January 2014, Dash was the brainchild of Evan Duffield. Dash offers a lot of anonymity due to a decentralized master-code network, which makes transactions almost untraceable. Within a few months from its launch, Dash gained a high number of fan following.
This real-time global settlement network offers instant, certain and low-cost international payments. According to the official website, Ripple “enables banks to settle cross-border payments in real time, with end-to-end transparency, and at lower costs.” Unlike Bitcoin and other altcoins, Ripple’s consensus ledger is mining-free. This reduces computing power usage drastically. And thus, minimizes the network latency.
Started in 2015, Ethereum is a decentralized software platform that allows the building of Smart Contracts and Distributed Applications (SCDA). These applications run without any downtime, control, fraud or intervention from a third party. Ethereum had launched a pre-sale for its cryptographic token, ether, in 2014. Ether is a means to move around the Ethereum platform and is mostly used by developers to develop and run applications inside Ethereum. It received a tremendous response during its pre-sale.
Litecoin is among the few early cryptocurrencies which started right after Bitcoin. Launched in 2011, it is often known as ‘silver to bitcoin’s gold’. Former Google engineer and MIT graduate Charlie Lee is the creator of Litecoin. Litecoin’s base is an open source global payment network, which operates without any central authority control. In comparison to Bitcoin, Litecoin has a faster block generation rate. Thus, it gives a faster transaction confirmation.
Monero is a secure, private and untraceable cryptocurrency. Soon after its launch in April 2014, the currency raised a lot of attention among the cryptography community. Like many other altcoins, Monero aimed at decentralization and scalability. It employed a special technique known as “ring signature”, which gave complete privacy to its users. The technique involves a group of cryptographic signatures that appears with at least one real participant. However, all the signatures look valid. Thus, the original one is safely hidden and protected.