THE BEST CRYPTOCURRENCIES
Just like Litecoin, bitcoin, and Peercoin, cryptocurrencies have become very prevalent. In fact, statistics show that bitcoins reached its peak value in 2017. This has significantly boosted the popularity of cryptocurrency elevating it to over 700, something that has never been documented before.
Cryptocurrency refers to a digital asset that works as a medium of exchange. It is released and controlled by standalone encryption methods. It is neither controlled nor regulated by any bank, centralized financial authority or government making it entirely different from fiat money such as euros, yen and US dollars. It depends on the power of the Internet to warrant its price and authorize transactions. Network users confirm all transactions which are then recorded publicly thus inhibiting an individual from spending the same coin or money multiple times.
The blockchain, originally called the block chain is a public journal that contains records or blocks that are all linked and encrypted by the use of cryptography. Data is kept securely, hence, no access by unauthorized personnel or hackers. Besides, it is protected from central failures and other unexpected occurrences.
Each block, record or set of records is transferred to the network where it is first checked for validity. When it’s been accepted by the network, it is then added to the blockchain. As soon as the network certifies the block, it cannot be altered in any way.
Cryptocurrencies are released through a process called mining. However, before an individual mines cryptocurrency, they are required to resolve a puzzle called a Hash. A hash allows an individual to add the succeeding block which is then recorded and made public in the Blockchain for everyone to see.
Several interested individuals often hurry to solve a hash. However, those who solve it successfully are rewarded with a block or cryptocurrency amount they managed to mine.
When mining cryptocurrency, one requires some special tools, unlike gold mining that only needs a magnifying glass and a pan. One needs to get armed with:
A mining hardware
Bitcoin wallet
Mining software
A mining hardware such as a computer ASIC chip is essential when mining cryptocurrency. A mining software with a step-by-step guide is also ideal. The guide should explain in detail how the ASIC chip computer mining hardware works. A bitcoin wallet is used to store one’s bitcoins in case they complete a block successfully.
The most popular cryptocurrencies are those that can be used quickly. They include:
Bitcoins; these are most valued and original form of cryptocurrency. It has a large and stable user base with Amazon and Victorias Secret being popular embracers.
Blockcoin; this has a verification system that prompts users to stick coins from their wallets for verification. Coins can be spent from unverified blocks. It allows for quick mining and takes little time and energy.
Dash; this uses Masternodes to complete several transactions. It prioritizes namelessness and has no public record. Therefore, it is very challenging for other players to know one’s deals and savings.
Litecoin; retailers use these. It plans to release about 84 million bitcoins which are way far more than the current 21 million.
Dogecoin; this created the famous hash scrypt system to help prevent monopoly mining by large companies. Though it never worked, it is still very popular.
Peercoin; this is a hybrid work proof system that defines cryptocurrency. It’s got no limit on the number of coins one can mint. It aims at attaining 1% rate of inflation.51% Attack; a Blockchain attack where a group or miners regulate over 50% of the computing power in a network. They have the power to decline deals and even pay users. However, it is not common though it exists.
Block; individual record or a set of records on a Blockchain.
Block reward; a bitcoin amount awarded to someone who successfully adds a new record or block to the Blockchain.
Blockchain; a digital public record where the whole cryptocurrency history is documented and stored.
Proof of stake; a scheme that substitutes the mining concept with an algorithm. It is where miners stake their money for block verification and transaction purposes.
Proof of work; a difficult hash that can only be resolved through momentous power or work.
Cryptocurrencies have brought an entirely different method of spending and storing currency without necessarily using any financial institution or central banking system. Since the technique is new, it hasn’t been adopted widely as a trusted payment mode. However, it has grown fast and could be a potential mode of financial transactions in future.
