The world of cryptocurrencies occupies more space in people’s lives every day, especially in recent years due to the rise of blockchain technology; it is important to know the innovative projects in this area, especially those cryptocurrencies with the best reputation; Therefore, it is important to know what their technology and special characteristics allow them to maintain their potential and popularity in the market. Below we will mention some cryptocurrencies that currently enjoy high credibility in the field.
Bitcoin: Pioneer in blockchain
Bitcoin is the most widely accepted cryptocurrency globally; we can make payments from anywhere in the world with low commissions and easily. Bitcoin is the pioneer cryptocurrency in the field, and it was the one that drove the spread of blockchain technology worldwide. Its decentralized nature and blockchain technology allow its system to be transparent and effective.
Bitcoin works as a kind of “digital ledger” that is proof of external modifications, where all the transactions that are carried out daily are recorded. Bitcoin uses a “proof of work” system to prevent counterfeiting and “double spending” and reaches consensus among the nodes that make up the network through the exchange and verification of information.
It is important to note that behind Bitcoin, there is no company, business, organization, or government. Another highlight is that Bitcoin has a limited number of units. All these characteristics make Bitcoin lead the group of cryptocurrency projects, reflected in its current price in the market. Bitcoin emerged in 2008 and was created by an anonymous character named Satoshi Nakamoto.
Ethereum: Smart Contracts
Ethereum is the second most relevant cryptocurrency globally (after Bitcoin) uses blockchain technology but has some differences from Bitcoin. Its platform specializes in smart contracts and the creation of tokens. An advantage of Ethereum concerning Bitcoin is its speed since, while in Bitcoin, a transaction can last approximately 10 minutes. In the case of Ethereum, the confirmations of your operations last 10 seconds approx. This is a great advantage, especially when marketing products or services that must be delivered immediately. Although Ethereum has a decentralized system, its creators are clearly identified and who is behind this project is the Ethereum foundation. The main disadvantage of Ethereum is that it does not have a limited number of units (unlike Bitcoin, whose units are limited).
Dash: DAO cryptocurrency
Dash appeared in 2014, being called Xcoin (XCO); later, it was renamed Dash. It is the first autonomous and decentralized organization with two levels in its architecture to run the network. Dash uses private operations (privateSend) services, which has a function that allows to “hide” the data of its operations, in addition to the information of who issues and receives payment.
One of the most innovative features that Dash has presented is the formation of DAOs, which are “decentralized organizations” that make decisions regarding the management of resources obtained from mining this cryptocurrency. In this case, it intended a specific fund to finance social projects that benefit the community itself.
What do you think about this topic? Which cryptocurrency do you think is the most innovative? Do you know other outstanding cryptocurrencies?
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