Cryptocurrencies are quite similar to real money, but take a digital monetary form and are not managed by any central authority. The currency operates without the involvement of the government or any bank. In this article, you’ll learn about the different types of cryptocurrency available.
One of the most popular types of cryptocurrencies, Bitcoin is the most recognizable and closely associated with the system. At present, there are more than 18.5 million Bitcoin tokens in circulation across the internet.
2. Bitcoin Cash
This cryptocurrency type came into existence in 2017 and is one of the most popular types of cryptocurrency in the online market. The only difference between bitcoin and bitcoin cash is their block size. Bitcoin cash is 8MB whereas the original Bitcoin is 1MB. Hence Bitcoin cash has a faster processing speed.
Litecoin comes next in the popular cryptocurrency list, probably after Bitcoin, and it functions the same way as the Bitcoins. This currency came into existence in 2011 when a former Google employee, Charlie Lee, designed a cryptocurrency in order to improve the original Bitcoin.
Ethereum focuses more on decentralized applications (phone apps). That’s why Ethereum is also known as an app store for cryptocurrency. This digital platform is planning to return control of apps to its original creators. Only the original creator will be allowed to make changes or upgrade the app. A token is used in the app, called Ether, which is used as currency by app developers and users.
Ripple is not based on the Blockchain. It is prefered by larger companies and corporations, not for individual use. The Ripple coins are known as XRP and help to move larger amounts of money around the globe. The main reason behind the popularity of Ripple is the
system, which allows transferring money in any form, be it dollars, or even any other cryptocurrency. The system can manage 1,500 transactions per second.
This type of cryptocurrency focuses on money transfers, and its network is created to make them faster and more efficient, internationally. Stellar was designed in 2014 by Ripple co-founder Jed McCaleb and is now operated by a non-profit organization called Stellar.org. The goal of this cryptocurrency is to assist developing economies that lack access to traditional banks and investment sources.
NEO was developed in China and soon became a popular cryptocurrency. The currency is focused on smart contracts that allow users to build and execute agreements without the use of any mediator. The currency is known for better architecture, developer-friendly, smart contracts, and a smart digital identity and digital asset.
Also known as ADA, Cardano is used to sending and receiving digital funds. It is a more balanced and sustainable ecosystem for cryptocurrencies and the only coin with philosophy and research-
driven approach. This cryptocurrency was founded by Charles Hoskinson, the co-founder of Ethereum.
IOTA was launched in 2016, and it is an abbreviation of Internet of Things Application. Unlike any other blockchain technology, IOTA works with smart devices on the Internet of Things (IoT).
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