Top 10 most popular cryptocurrencies
Virtual currency or game currency - private electronic money that is used to purchase and sell virtual goods in various online communities: social networks, virtual worlds and online games.
Cryptocurrency - digital counting units, accounting is decentralized. The functioning of these systems occurs through a distributed computer network. At the same time, transaction information is usually not encrypted and is available in clear text. To ensure the invariance of the transaction block chain base, elements of cryptography are used (digital signature based on a public key system, sequential hashing).
The term entrenched after the publication of an article about the Bitcoin system “Crypto currency”, published in 2011 in Forbes magazine. The author of Bitcoin himself, like many others, used the term “electronic cash” (English electronic cash). For issuing different cryptocurrencies use different methods: mining, forging or ICO.
On the economic nature and legal status of cryptocurrency discussions are underway. Depending on the country, cryptocurrencies are considered as a means of payment, a specific product may have restrictions in circulation (for example, the prohibition of operations with them for banking institutions).
The greatest demand among traders and cryptoinvestors are digital currencies represented in the top ten of the rating. This is due to various factors, and the most important among them are high liquidity, stable growth of the course, prospects for further development of the ecosystem, and the reputation of the developers.
It is also worth noting that in the world of cryptocurrency everything is changing very rapidly. Nevertheless, at the time of writing this review, the cumulative capitalization of the first ten cryptocurrency ratings is $ 122.4 billion. If we compare this number with the total value of all cryptocurrencies ($ 138.8 billion) represented on this service, then it turns out that the market share of the ten most popular digital currencies will be 88%.
Mining, as well as mining (from English mining - mining), is an activity of maintaining a distributed platform and creating new blocks with the opportunity to receive remuneration in the form of new units and commission fees in various cryptocurrencies, particularly in Bitcoin. The calculations that are made are required to provide protection against the re-use of the same units, and the reward encourages people to spend their computing power and support the operation of networks.
Mining is not the only technology to create new blocks. Alternatives are forging (minting) and ICO. Usually only one technology is used, but in some cryptocurrencies they use combinations of them.
The mining process consists in selecting a value Nonce, which will allow you to get a hash, the numerical value of which will be no more than some given number - Difficulty Target, the target level of complexity.
An example of hashes for the same phrase, but with different additional parameters (the last line in the example has the smallest hash value):
“Hello, world! 0” => 1312af178c253f84028d480a6adc1e25e81caa44c749ec81976192e2ec934c64
“Hello, world! 1” => e9afc424b79e4f6ab42d99c81156d3a17228d6e1eef4139be78e948a9332a7d8
"Hello, world! 2" => ae37343a357a8297591625e7134cbea22f5928be8ca2a32aa475cf05fd4266b7
“Hello, world! 4248” => 6e110d98b388e77e9c6f042ac6b497cec46660deef75a55ebc7cfdf65cc0b965
"Hello, world! 4249" => c004190b822f1669cac8dc37e761cb73652e7832fb814565702245cf26ebb9e6
"Hello, world! 4250" => 0000c3af42fc31103f1fdc0151fa747ff87349a4714df7cc52ea464e12dcd4e9
In other cryptocurrencies, the calculation of both the hash and the target level of complexity may differ significantly.
Bitcoin (exchange ticker - BTC, sometimes - XBT)
Bitcoin (English Bitcoin, from bit - “bit” and coin - “coin”) is a peer-to-peer payment system that uses the same unit of account and the same-name data transfer protocol. To ensure the operation and protection of the system, cryptographic methods are used. All information about transactions between system addresses is available in open form.
The minimum transmitted value (the smallest fragmentation) —10–8 Bitcoin — was named Satoshi in honor of the creator Satosi Nakamoto, although he himself used the word “cent” in such cases.
Electronic payment between the two parties occurs without intermediaries and is irreversible - there is no mechanism for canceling a confirmed operation or forcible withdrawal. But there is the possibility of attracting a third party guarantor with the help of multi-signature. No one can block (arrest) funds, even temporarily, except for the owner himself. These and other smart contracts can be implemented using a special scripting language, but it is not accessible from the GUI and is not Turing-complete, unlike newer blockchain systems (see Ethereum).
Different authors classify bitcoins in different ways. The most common options are: cryptocurrency, virtual currency, digital currency, electronic cash.
Bitcoins can be used to exchange goods or services from vendors who are willing to accept them. Exchange to ordinary currencies occurs through an online digital currency exchange service, other payment systems or exchange offices.
The commission for carrying out operations is set by the sender voluntarily, the size of the commission affects the priority when processing a transaction. Typically, the client program suggests the recommended amount of commission. Non-commission transactions are possible and are also processed, but not recommended, since the processing time is unknown and can be quite long.
One of the main features of the system is complete decentralization: there is no central administrator or any equivalent. A necessary and sufficient element of this payment system is the basic client program (it has an open source code). Launched on many computers, client programs are interconnected into a peer-to-peer network, each node of which is equal and self-sufficient. It is impossible to state or privately control the system, including changing the total number of bitcoins. The volume and time of production of new bitcoins are known in advance, but they are distributed relatively randomly among those who use their equipment for computing, the results of which are the mechanism for regulating and confirming the eligibility of operations in the Bitcoin system.
The first in history and the most popular in the world of cryptocurrency. Created at the turn of 2008-2009. Despite such a “respectable age”, the cryptocurrency is actively developing, based on the blockchain bitcoin, various solutions are being developed and implemented to improve it. The emergence of Bitcoin was the reason for such a rapid development of the cryptocurrency market and the regular appearance of the most diverse digital assets. Bitcoin is based on the revolutionary blockchain technology, which has been actively researched and developed by the largest companies in the world, and also used in many industries.
Bitcoin's current capitalization is $ 71 billion, which exceeds the cost of many large companies with a worldwide reputation. The supply of the first digital currency is strictly limited to 21 million BTC. On specialized sites you can see the current volume of Bitcoin offerings on the market - 16,506,412 BTC, daily exchange trading volume, as well as various useful links to official information sources, social media, block reviewers, exchanges where this cryptocurrency is presented, etc.
Ethereum (from English ether [ˈiːθə] - “ether”, Ethereum) is a platform for creating decentralized online services based on the blockchain (Đapps, Decentralized applications, decentralized applications) working on the basis of smart contracts. Implemented as a single decentralized virtual machine. It was proposed by the founder of Bitcoin Magazine [en] Vitaly Buterin at the end of 2013, the network was launched on July 30, 2015.
Being an open source platform, Ethereum greatly simplifies the introduction of the blockchain technology, which explains the interest not only of new startups, but also of the largest software developers such as Microsoft, IBM and Acronis. Financial companies, including Sberbank, are showing significant interest in the platform.
This is a digital currency platform for creating decentralized online services based on the blockchain (Dapps), based on smart contracts. If Bitcoin is often called “digital gold” (for the complexity of its production, limited supply and excellent investment qualities), then Ethereum is sometimes called the “digital analog of oil”. That's because ETH cryptocurrency is a kind of “fuel” for smart contracts and Dapps created on the basis of them.
In the crypto community, the debate about which investment object is more attractive - Bitcoin or Ethereum, does not abate. Despite the relatively young age of the latter (the Ethereum network was launched on July 30, 2015), the well-known personalities of the world of cryptocurrencies prefer the “ether”. They are convinced that soon Ethereum’s popularity will eclipse Bitcoin.
The rapid growth of Ethereum’s popularity is evidenced by the following graph, which reflects the share of the most popular cryptocurrencies on the market:
So far, the volume of market capitalization of “digital oil” ($ 28 billion) is about two and a half times less than the corresponding bitcoin indicator.
At the same time, the potential of Ethereum is high and attracts the attention of the largest software developers, such as Microsoft and IBM. On the Ethereum platform, a lot of ICO (Initial Coin Offering) is carried out, and on the basis of the underlying ERC-20 standard, many cryptotokenes are created.
Ripple is a real-time gross settlement, currency exchange and money transfer system developed by Ripple. Also referred to as the ripple transaction protocol (Ripple Transaction Protocol; RTXP) or the ripple protocol. Built on a distributed open source Internet protocol, a consensus registry (ledger) and its own cryptocurrency, called XRP. Launched in 2012, Ripple aims to provide “secure, instant and almost free global financial transactions of any size without chargebacks”. It supports tokens that represent fiat currency, cryptocurrency, commodity, or any other unit of value, such as frequent flyer miles or mobile minutes. At its core, Ripple is based on an open, shared database or registry that uses a reconciliation process that allows payments, exchanges, and transfers of funds in a distributed process.
In 2014, Ripple defended the security of its consensus algorithm against a rival - Stellar Networks. As of 2017, Ripple is the fourth cryptocurrency in terms of market capitalization, second only to Bitcoin and Ethereum.
Used by companies such as UniCredit, UBS or Santander, the Ripple protocol is increasingly being used by banks and payment networks as a computational infrastructure technology, American Banker Edition, explains this by the fact that “from the point of view of banks, distributed registries such as the Ripple system , have a number of advantages over cryptocurrencies like bitcoin ”, including in terms of price and security.
This cryptocurrency is used in the system of gross settlement in real time, as well as for currency exchange and money transfer. The Ripple protocol was launched in 2012. Its goal is to provide “secure, instant and almost free global financial transactions of any size without chargebacks”. According to some crypto entuzastes, the Ripple payment system may in the future become “an alternative to SWIFT”.
The largest companies and banks in the world cooperate with Ripple, including BBVA, Mizuho, Mitsubishi UFJ, UniCredit, UBS and Santander. Among Ripple investors are names like Accenture, Andreessen Horowitz, Google Ventures, and Seagate.
The rapid rise of the Ripple price (XRP) fell on the first half of the current year and allowed the cryptocurrency to firmly consolidate itself in the top three leaders in the Coinmarketcap rating. Currently, XRP cryptocurrency capitalization is approaching 7 billion. There were times when Ripple capitalization exceeded the total market value of Ethereum digital currency.
Bitcoin Cash - cryptocurrency, fork Bitcoin, separated from him. Branching occurred August 1, 2017.
The block size in the Bitcoin blockchain is limited to 1 megabyte. When there were not too many transactions, such a restriction almost did not affect anything, but it significantly limited the possibilities of a DDoS attack. With the growing popularity of Bitcoin, the number of transactions increased, but due to the limitation of the maximum block size, not all transactions were “placed” immediately, and a queue appeared periodically. In May 2017, the situation has deteriorated dramatically. Some users complained that they have to wait for confirmation for several days. To speed up processing, the user can assign a higher commission. But this makes the use of bitcoins quite expensive, especially for small payments - it makes no sense to use them, for example, in cafes and bars.
Bitcoin Cash is the resulting hardfork “alternative to bitcoin”. Thus, on August 1, the bitcoin blockchain split into two chains and a new digital asset appeared - Bitcoin Cash (sometimes Bcash), which has a common history with Bitcoin, but is trading under another ticker BCC (less often BCH).
After hard forks, many exchanges and wallets gave holders of “digital gold” an excellent opportunity to get a certain amount of Bitcoin Cash tokens, which should match the Bitcoin balance in a 1: 1 ratio. For example, if a user has 1 BTC on his wallet, then he gets 1 BCC after hardfork.
Immediately after its appearance on the stock exchanges, the new cryptocurrency was in third place in terms of capitalization, leaving behind such “veterans” of the market as Litecoin and Ripple. However, shortly after the exchanges made Bitcoin Cash I / O available, the “alternative to bitcoin” began to plummet in price. So, if on August 2, the price of BCC reached a mark of 0.485 BTC (about $ 1300) on the Bittrex exchange, then two days later its weighted average price was slightly above $ 250.
Not everything is going well with the new cryptocurrency. Bitcoin Cash is not as attractive to mining as a “regular” Bitcoin, and its network every now and then experiences various problems. Apparently, the new cryptocurrency owes its capitalization of $ 4.8 billion only for the popularity of Bitcoin, no more.
IOTA is a new cryptocurrency developed for the Internet of Things (IoT), announced at the end of 2015. It is based on the new concept of the distributed account log Tangle. IOTA, according to its creators, has several advantages over the blockchain with regard to a large number of micropayments - for example, 1 cent.
Micropayments in classical cryptocurrencies face high commissions and a fairly long transaction confirmation time. In the blockchain, verification is completely separate from users, so you must pay commissions to miners or holders of a share to confirm transactions. There is no such separation in IOTA, it is a fully self-supporting network in which there are no miners, and users themselves confirm the transactions of other users.
There are no transaction fees within the network, which allows micropayments in real time, and the system is infinitely scalable.
Cryptocurrency IOTA Description:
- Founded in October 2015 as a solution for the Internet of Things - Internet-of-Things (IoT), because the price of transactions in the blockchain is quite large and it is not suitable for the Internet of things (from car to light)
- There are no transaction fees within the network, which allows micropayments in real time.
- Instead of a blockchain, it uses a DAG - directed acyclic graph.
- Total system 2,779,530,283,277,761 Iota
- ICO / Crowdsale was in December 2015, they collected 1,337 bitcoins for development.
- Founders David Sonstebo, Sergey Ivancheglo, Dominik Schiener, and Dr. Serguei Popov. Popov came up with, Sergei and Dominic coded, David promotes.
- The larger the transaction - the faster they are confirmed.
- From March to June traded on its stock exchange.
Cryptocurrency project exchange network for the Internet of Things. It is based on the unique consensus method Tangle. The main feature of the latter is the absence of miners. In addition, there are no transaction fees in the network - the latter are mutually confirmed by network nodes.
The uniqueness of IOTA also lies in the fact that network members are not divided into users and transaction validators. Each node both sends and confirms transactions that are not packaged in blocks (which distinguishes IOTA tokens from the vast majority of other digital currencies). The capacity of the IOTA network is proportional to the number of nodes and their activity.
IOTA tokens are traded primarily on the popular Hong Kong exchange Bitfinex. It is noteworthy that other trading platforms are not in a hurry to include this innovative cryptocurrency in the listing. On the other hand, IOTA is gradually gaining universal acceptance. So, last month, SatoshiPay, which specializes in micropayments, announced its intention to abandon the use of Bitcoin in favor of IOTA cryptocurrency.
If we consider the global prospects of a new cryptocurrency, then they appear to be quite interesting. So, according to TechNavio research, from 2017 to 2021. The cumulative average annual growth rate of the global Internet of Things (Internet of Things, IoT) market will be 4%. This means that the volume of the global IoT market will reach $ 1.37 billion by 2021, with a 81% percentage of market growth provided by the most diverse electronic gadgets.
Recently, the IOTA cryptocurrency is showing steady growth and the price of a single token has reached $ 0.88. IOTA Market Capitalization Overcomes $ 2 Billion Mark
Litecoin (from English lite - “easy”, English coin - “coin”) - Bitcoin fork, peer-to-peer electronic payment system using the same cryptocurrency. After Litecoin support was activated, Segwit solved the scaling problem inherent in Bitcoin (at the moment it is possible to make a maximum of 7 transactions per second on the Bitcoin network), which can bring Litecoin to the first place in the world’s popularity among cryptocurrencies.
Litecoin is the second Bitcoin fork after Namecoin and has only minor differences from it. As of May 19, 2017, 1 LTC is equivalent to 42 USD on the BTC-E exchange and was the sixth largest total value of cryptocurrency.
Litecoin can be used to exchange for Bitcoin or generally accepted money in exchange offices, as well as for electronic payment of goods / services from sellers who are ready to accept them.
To ensure the operation and protection of the system, cryptographic methods are used.
A popular bitcoin fork, often referred to as “digital silver”. Laitcoin was one of the first to activate support for the SegWit protocol. However, Litecoin and before the activation of Segregated Witness differed significantly faster transaction confirmation time than the same Bitcoin. Currently, the project continues to actively develop under the leadership of its famous creator Charlie Lee.
For several years, Litecoin was “in the shadow of” Bitcoin and other cryptocurrencies, trading at around $ 3-4 per coin. In March of this year, on the eve of the implementation of SegWit, the price of digital gold began to rise. Now the Litecoin price is approaching $ 50 per coin, and, according to many analysts, this is far from the limit. Cryptocurrency is represented on most exchanges and exchange platforms, and is also accepted by many companies as a means of payment.
The maximum supply of Litecoin is limited to 84 million tokens and currently 52.4 million LTC is circulating on the market.
During the event at Microsoft headquarters in Beijing on Thursday, June 22, the digital asset platform Antshares, which is also sometimes called the “Chinese Ethereum”, announced a full rebranding, and also presented ambitious plans for further development.
Antshares is the first open-source blockchain platform developed in China, but now this name is becoming history. From now on, the project will be known as NEO [from the Greek. neos novelty, youth].
The developers also highlighted the advantages of their smart contract code, which will support decentralized commerce, digital identification, and digitalization of various assets.
The ANS symbol will be changed to NEO in the third quarter of 2017, when work on the new client and user interface will be completed. Currently, ANS holders can automatically generate Antcoins (ANC) in their wallets that will be used as gas.
As the founder of NEO Da Hongfei noted in his presentation, the future of blockchain technology implies that every asset will be programmed using smart contracts. Introducing the concept of "smart economy" and the new system of smart contracts, Da Hongfei also said that the platform is creating a protocol compatible with other blockchains.
The digital asset platform NEO (formerly known as Antshares) is often called the “Chinese Ethereum”. Recently, representatives of the project completed the full completion of the rebranding. In particular, the Chinese startup reported on upgrading the blockchain node, updating technical documentation, social media, official website, changing the exchange ticker, as well as the successful transition to the system of smart contracts NEO 2.0.
The NEO coin has been demonstrating impressive growth for a long time, which allowed cryptocurrency to take the 7th Coinmarketcap rating for a short period of time. In total, over the past three months, the price of cryptocurrency has grown about 20 times and now NEO is trading at around $ 45. The supply volume of NEO is fixed and limited to one hundred million tokens, of which 50 million coins are in circulation on the market. The market capitalization of “Chinese Ethereum” exceeds $ 2 billion.
It is also worth noting that the project is developing very actively and has already established cooperation with well-known blockchain startups, including Bancor, Coindash and Agrello. Chinese blockchain-startup Red Pulse announced the creation of a platform for financial research, which will be built on the system of smart contracts NEO 2.0. Also in collaboration with the NEO project, an operating system on the blockchain called Elastos is being developed. According to the developers, it is intended to “study the technological value of using blockchain applications in new Internet operating systems and the further development of Smart Economy”.
NEM is a cryptocurrency and blockchain-based cryptocurrency and blockchain platform launched on March 31, 2015. POI, EGentrust and reputation system. The NEM blockchain software is a commercial blockchain called Mijin.
This digital currency became known in early 2015. It is distinguished from many other digital currencies by the original open source and a number of interesting innovations. For example, the XEM cryptocurrency is based on the POI (Proof Of Importance) algorithm, a proof-of-stake modification. However, unlike PoS, in the POI, in addition to proving the storage of a certain amount of funds, the user's activity is also taken into account - the number of transactions made by him. Receiving an award for a block in the NEM network is called “harvesting.”
This year, a major update is expected under the name Catapult, during which NEM will switch from Java to C ++. The new version of the private network has been tested for stable operation at up to 3000 transactions per second. The update will occur first in the Mijin private blockchain, and then in the NEM public chain.
Also, on the basis of NEM, a new COMSA platform is being developed, which is designed to support projects in their pursuit of transparent and orderly ICOs. According to representatives of the project, the new solution greatly optimizes the process of attracting investments in digital currency.
XEM capitalization exceeds $ 2 billion. The coin is popular not only in its native Japan, but is also actively traded on a number of major stock exchanges, including Poloniex and Bittrex.
Dash (previously known as Darkcoin and XCoin) is an open, decentralized payment system that uses a mechanism called Darksend to make transactions anonymous.
In 2015, according to market capitalization, Dash had the fifth place among all cryptocurrencies.
Cryptocurrency launch, which at that time was called Xcoin, occurred on January 18, 2014. From January 28, 2014 to March 25, 2015, the cryptocurrency was named Darkcoin.
The main features of Dash cryptocurrency:
- transactions anonymized by the Darksend mechanism;
- a combination of several cryptographic algorithms is used;
- Mining Dash requires less power than Bitcoin;
- Decisions on the development of the system are not made by individual programmers, but by all members of the Dash network through the mechanism of decentralized management.
In the DASH network, there are so-called masternods - special nodes that provide the operation of the PrivateSend transaction shuffling mechanism. To stimulate the work of the master-class, a reward is provided, which is 50% of the miner’s reward for the block found. Also in the system DASH implemented instant transaction service InstantSend. Another feature of DASH is the use of the X11 hashing algorithm.
DASH cryptocurrency has many supporters. Since its inception, the price of cryptocurrency has increased several hundred times and Digital Cash is currently trading at around $ 200.
Ethereum Classic (ETC)
Ethereum Classic (ETC) is a blockchain crypto platform for developing decentralized applications based on open source smart contracts. It is a decentralized Turing-complete virtual machine, Virtual Ethereum Machine (EVM), which can execute programs on public nodes of the network. Ethereum Classic provides the “Ether” currency (Classic Ether, Classic Ether, ETC), which can be transferred from one network participant to another and is used to pay for calculations made by public network nodes, as well as the ability to create your own digital assets (tokens) on the Ethereum Classic blockchain. . The broadcast paid for the calculations is called “Gas”. Gas serves not only to pay for the calculations, but also prevents DDOS attacks on the network.
Ethereum Classic appeared as a result of disagreement with the hard fork adopted by the Ethereum Foundation “The DAO”. He brought together members of the Ethereum community, who rejected DAO Hard Fork on philosophical grounds, which were set forth in the Ethereum Classic Declaration of Independence. People who had ETH on the balance sheet before the DAO hard fork (1,900,000 block) received the same ETC after committing the hard fork.
Ethereum Classic went through technical hard-fork to adjust domestic prices for various Opcode Virtual Machine (EVM) opcodes on October 25, 2016, similar to a hard fork Ethereum perfect a week earlier. The purpose of the hard fork was a more rational distribution of payment for resource-intensive computing, which led to the elimination of favorable conditions for carrying out attacks, which were conducted at ETH and ETC during the month. A hard fork conducted in early 2017 successfully postponed the “complexity bomb” laid down in the Ethereum code from September 2015 with the goal of exponentially increasing the complexity of mining, the process of calculating new network blocks. The next hard fork is scheduled for the end of 2017 in order to change the monetary policy from unlimited emission to a bitcoin-like one.
Appeared in 2016 as a result of the hard fork “twin brother” Ethereum (ETH). In other words, this cryptocurrency is the same Ethereum, before hard forks. The goal of the project is to preserve the original Ethereum, decentralized, unalterable and not subject to censorship.
A year ago, many thought the Ethereum Classic was stillborn, but this was far from true. ETC is still in the list of the top 10 cryptocurrencies by market capitalization. A strong supporter of Ethereum Classic is the world-famous crypto enthusist and head of the Digital Currency Group Barry Silbert. Largely due to his efforts, the cryptocurrency ETC appeared in the professional computer system Bloomberg Terminal.
In general, the growth of Ethereum Classic strongly intensified in the spring of 2017, after the launch of the Ethereum Classic Investment Trust. Further growth of Ethereum Classic expects to be stable at least due to the weighted monetary policy of the project, which provides for limiting emissions and reducing the reward for the unit. In particular, the total number of coins will be approximately 210 million, but not more than 230 million; as for the award for the extracted block, it will be reduced by 20% after the block number 5 000 000 and will decrease by 20% in the future after each subsequent 5 million blocks.
Via forklog.com & wiki