Cryptocurrency is a type of digital asset which is used to exchange value between parties. It uses strong cryptography to secure financial transactions and control the creation of new units of that currency and verify the transfer of assets. Cryptocurrency does not exist physically.
We know that the government prints the government currencies like fiat currency such as Dollar, Yen or Yuan itself. It means there is a centralized institution exists which can create thousands or millions or billions more of that currency. Unlike government currencies like bitcoin, these type of currencies is created by the same mathematical formulas that make the cryptocurrency work. Thus, cryptocurrencies use decentralized control, which works through distributed ledger technology that serves as a public financial transaction database.
Today, many different types of cryptocurrencies are available. Some of them are given below.
Bitcoin is generally known as the first decentralized cryptocurrencies. It is created by the network of thousands of specific nodes called miners. The miners can process the bitcoin transactions in the blockchain network. Since the release of bitcoin, more than 4000 alternative variants of bitcoin are available now.
Litecoin cryptocurrency worked very similar to Bitcoin. We know that bitcoin wait ten minutes for a transaction block to be processed, but Litecoin can do this in maximum two and a half minutes. Litecoin doesn’t have a big market cap. The price of Litecoin is lower than Bitcoin, but it’s a very effective process and also has some variations from Bitcoin.
Z-Cash is a privacy-protecting digital currency which is built-on strong science in cryptography. It provides enhanced privacy for its users as compared to other cryptocurrencies such as bitcoin. Here, transaction data is kept confidential, which is made possible through zero-knowledge proofs. It allows transactions to be verified without any information about the sender, receiver, and the amount transacted.
Z-Cash features known as viewing keys and payment disclosure makes it possible to disclose some of the user’s transaction data. It makes the transactions on Z-Cash auditable and regulation-compliant.
Monero is an open-source cryptocurrency which focuses on untraceable, privacy and decentralization. It is fast, private, and secure digital cash, which is operated by a network of users. We can use it to buy and sell things and can exchange for other coins or tokens.
It uses a special kind of cryptography which ensures that the transactions remain 100% untraceable. It focuses on anonymity, which is harder to track, whereas Bitcoin is pseudonymous, which transactions are still traceable.
Dash is a short form of Digital Cash. It is an open-source cryptocurrency and is a form of a decentralized autonomous organization which is run by a subset of users, called master nodes. It is one of the most promising alternative coins to bitcoin. It permits very fast transactions, which are untraceable.