What is Cryptocurrency?
Digital currencies are quickly becoming a highly sought after assets that have the potential to revolutionize our monetary system. With the rise of the internet, the idea of physical dollars and coins has been struggling to keep up with innovation. Cryptocurrency changes all of that! Learn about how cryptocurrency works, why there are so many, and what the future holds for this new asset.
What are some common cryptocurrencies?
Bitcoin is the most popular cryptocurrency right now. Created by Satoshi Nakamoto, the main goal of Bitcoin is to create an alternative to fiat currency
- White Paper
- Easy to exchange
- Storage of value
- Transactions confirmed in minutes
- Security Algorithm: SHA-256
Ethereum aims to provide a platform that other cryptocurrencies and smart contract applications can be built on. While Bitcoin focuses on being a decentralized alternative to fiat currency, Ethereum aims to be a decentralized alternative to peer-to-peer applications. Ethereum smart contracts run without downtime, prevent fraud, and avoid interference from 3rd party sources.
- White Paper
- Smart contracts
- Used to build decentralized applications
- Has its own programming language
- Transactions can contain executable code
- Transactions confirmed in seconds
- Ethash algorithm
Ripple is popular with banks due to fast transactions with low fees and its ability to be a means of exchange between different fiat currencies.
- Premined coins
- 200 institutions use Ripple
- Used in 40+ countries
You will find dozens of alternate coins. Each of these will have its own goals, pros, and cons. Makes sure to read the white paper (avoid any that do not have a white paper).
- Bitcoin Cash
- Many, many more