Initiated by Bitcoin almost 10 years ago, cryptocurrencies continue to grow. Today, there are 10 of these currencies based on cryptography. But what exactly are these cryptocurrencies and what does this concept cover?
Before going into technical details, it is important to clarify things. Cryptocurrencies actually rely on an operation called "mining". It is a process based on intense mathematical calculations. The idea is to generate money and secure the transactions made with it. Recall that a cryptocurrency is, in essence, virtual. It is therefore crucial to be able to authenticate all transactions made with.
History of mastering a minimum of vocabulary, the verification of these transactions is done in a kind of huge register deemed unfalsifiable and called the "blockchain". All the interest of these cryptocurrencies is to operate in a totally decentralized way. There is of course this blockchain at the heart of the system, but there is no question of finding a kind of central bank or administrator to control everything.
● Digital: It is possible to transfer Altcoins to anyone anywhere on the planet. Storage is dematerialized.
● Defined: each alternative currency will ultimately have a limited amount of "coins". In the case of Bitcoin, it's 21 million not one more, not one less.
● Secure: the principle of the "blockchain" makes it possible to authenticate all the transactions and so there can be no fraud. On the other hand, the theft of Altcoin remains perfectly possible.
● Transparent: everything is entirely public, whether it is the implemented algorithms, the protocols used or the software used.
● Anonymous: this transparency is however done in anonymity since the real identity behind each address remains unknown to all.
● Inalienable: fully decentralized, the Altcoins do not depend on a state or a central bank. We can not impose a freeze or seizure of accounts.
Overview Of The Main Cryptocurrencies
As we have just said, there are several tens, even hundreds, of cryptographic coins. It would be illusory to claim here exhaustiveness and completely vain to realize a complete panorama of the current offer. However, these alternative currencies should not be considered irrelevant. Thus, while it still controlled 95% of the cryptocurrency market, Bitcoin is now only about 60% and its share continues to decline.
If it is impossible to establish a real ranking, it is nowadays commonly admitted that four cryptocurrencies stand out from the others by the amount of capitalization of their market. Thus Bitcoin is obviously at the top of this list followed by Ethereum, Ripple and Litecoin. Some other currencies also manage to stand out: one can quote the Monero, the Dash, the ZCash or even the Dogecoin. Do not blame us too much if we do not mention the case of your favorite currency, as we have said, they are simply too numerous.
● Litecoin: to all lord, all honor, the Litecoin is the first currency created after the Bitcoin. Its main goal is to reduce transaction confirmation times.
● Ethereum: one of the most publicized, the Ethereum has been in the news for several months and has emerged as the second cryptocurrency after Bitcoin.
● Ripple: Ripple's goal is to go beyond the "simple" currency by offering a financial transaction protocol open to any currency.
● Monero: the main novelty of Monero compared to Bitcoin was to rely on a new algorithm, CryptoNote.
● ZCash: ZCash is distinguished by absolute respect for privacy. Thus, a ZCash transaction does not reveal either the parties involved or the amount.
● Dash: in the manner of Litecoin, Dash focuses on the speed of transactions and in the manner of ZCash, it tends to preserve absolute anonymity.
● Dogecoin: let's end on a particular currency born of a joke. The Dogecoin is not innovative, but has found its place through word of mouth. An example of the sometimes somewhat irrational side of cryptocurrency.
You now know a little more about the concept of cryptocurrency and the very basis of these virtual currencies. In the next files, we will have the opportunity to detail the majority of the aspects that make it possible to obtain these Bitcoins (Claim Bitcoin Lite) and other Ethers, we will return to the virtual portfolios to store these currencies and on the various means of payment which are attached to them.
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