Cryptocurrency is a digital currency which works as a medium of exchange. In the recent past, Cryptocurrency has become very popular which is why many merchants and delivery sites are now accepting payments in the form of Cryptocurrency. There are various types of Cryptocurrency which include Bitcoin, Bitcoin Cash, Ethereum, Ethereum classic, Litecoin, Ripple, etc.
Bitcoin: Bitcoin is one of the earliest forms of Cryptocurrency which uses peer-to-peer technology. Bitcoin is an innovative payment network which operates with no central authority or banks. Bitcoin transactions are secured by military-grade cryptography, and it provides a strong level of protection against many types of fraud. Any person can digitally send a bitcoin, multiple bitcoins, or a fraction of bitcoin, across the world or in the same room. Like handing someone cash, and unlike older digital financial systems, the money doesnât have to go through the intermediaries such as banks or any other companies.
A blockchain is a decentralized public ledger that makes Bitcoin work. Each account on the Bitcoin network, called a wallet and it is tracked on the blockchain. Under the mechanism of blockchain, every time a transaction is sent to the network, the sender digitally signs it and a timestamp is made of the transaction. It is then included in a group of transactions that get processed together, and a condensed version of the previous group of transactions is added into the group. Since every new group of transactions includes the prior group in a concise version, changing anything along the line would alter the transaction history and invalidate the chain. If someone wanted to go back and erase or change an older transaction, they would have to redo the mathematical computations that make up the ledger until that point. The blockchain enables every transaction and balance to be recorded, tracked and verified. In the past one year, the Bitcoin declined from US$11,536 on 28 January 2018 to US$3,425.11 on 28 January 2019.
Source: Thomson Reuters
Bitcoin Cash: In 2017, the Bitcoin project and its community split in two â Bitcoin (BTC) and Bitcoin Cash (BCH). Bitcoin Cash (BCH) is a peer-to-peer electronic cash system which offers more privacy and anonymity to its user. With Bitcoin Cash, an individual can send money to anyone, and it does not require anyoneâs permission or approval. Bitcoin Cash (BCH) eliminates credit card fees which is why many merchants offer discounts for paying in Bitcoin Cash. In the past one year, the Bitcoin cash declined from US$1,719.99 on 28 January 2018 to US$111.29 on 28 January 2019.
Source: Thomson Reuters
Ethereum (ETH): Developed by Ethereum Foundation, Ethereum is a blockchain app platform which builds unstoppable applications which runs on a custom built blockchain. These applications run exactly as they are programmed and there is no chance of downtime or third-party interference in these applications. Ethereum Wallet is a gateway to decentralized applications which allows individuals to secure Ether and other crypto-assets which are built on Ethereum platform.
In the past one year, the price of Ethereum decreased from US$1,231.58 on 28 January 2018 to US$107.59 on 28 January 2019.
Â Ethereum Classic (ETC): Ethereum Classic (ETC) is a type of cryptocurrency which has some of the largest network activity of any blockchain, and besides allowing people to send money to each other, this cryptocurrency allows for complex contracts. Ethereum Classic is a decentralized platform that runs smart contracts, and it is a highly efficient means of exchange that connects the worldâs devices. In the past one year, Ethereum Classic (ETC) declined US$32.44 on 28 January 2018 to US $3.99 on 28 January 2019.
Litecoin (LTC): Litecoin is a Cryptocurrency for the payments which means that it is a peer-to-peer Internet currency through which payments can be made instantly to anyone in the world.Â LTC is an open source, global payment network which allows individuals to control their own finances and it provides improved storage efficiency than the leading math-based currency. In the past one-year, Litecoin has declined by US$193.23 on 28 January 2018 to US $31.12 on 28 January 2019.
Ripple (XRP): Created by Ripple Labs Inc., Ripple (XRP) provides one frictionless experience to send money globally and it offers banks and payment providers a reliable, on-demand option to source liquidity for cross-border payments. It is real-time gross settlement system, currency exchange and remittance network which is used by Banks and payment providers to decrease their costs and access new markets.
In the past one-year, Ripple has declined from US$1.36 on 28 January 2018 to US$0.29181 on 28 January 2019.
Source: Thomson Reuters
In a time where Cryptocurrencies are getting popular day by day, it is very important for investors and users to understand the different types of cryptocurrency.
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