10 Crypto-Currency Alternatives to the Popular Bitcoin
10 Crypto-Currency Alternatives to the Popular Bitcoin
Crypto-currencies or virtual currencies are a new form of currency mainly used on online platforms to facilitate online transactions. These currencies are created using encryption technology, which controls their creation, use, and transfer in a manner that is independent, from traditional monetary and banking authorities. Virtually, all crypto-currencies have had legal, regulatory, and security challenges in their use. However, some of them have been able to overcome most of these challenges and emerge as strong virtual currencies. The Bitcoin is perhaps the most popular crypto-currency, which is widely known and used over the World Wide Web. But apart from the Bitcoin, there are many other virtual currencies that have been developed. Read on to learn about the 10 alternatives to Bitcoin that can be used on online platforms.
The Peercoin also called the PPCoin is peer-to-peer virtual currency, which uses the proof-of-work and proof-of-stake systems. The crypto-currency was designed by Sunny King and Nadal Scott in 2012. The PPCoin idea was inspired by the Bitcoin and the two virtual currencies share the technical implementation and source code elements. The Peercoin is the 4th largest virtual currency with a market capitalization of approximately $71.3 million USD and a unit price of $3.37. The currency is designed to reach a yearly inflation rate of 1 percent. The currency is sub-divided into units of Millicoins and MicroCoins.
Quark is a crypto-currency that is mined through the use of regular computer processing power. The currency provides a fair model of distribution. The virtual currency is developed through nine loops of encryption, which enhance its anonymity and security in use. The Quark currency was developed in 2013, and it has a market capitalization of $12 million USD with each currency unit being valued at $0.05 USD.
The Dogecoin is a virtual currency introduced in 2013. The crypto-currency started off as a joke currency,’ but it soon got a significant following in form of a strong online community. The virtual currency has a market capitalization of about $60 million USD, and by 2015 an estimated 100 billion coins of the currency had been mined. The Dogecoin has little commercial use in online platforms, but it is often used to tip users that provide useful content to other online users.
Namecoin was developed as an exploration of the record keeping facet of virtual currency technology. Namecoin uses the proof-of-work algorithm and it is a decentralised peer-to-peer domain name system, which was developed from similar principles as the ones used in developing Bitcoin. The currency denoted as NMC is the first off-shoot of Bitcoin, and it was developed in 2011. Namecoin has a market capitalization of $26.9 million USD and each unit is valued at $3.3 USD.
The Litecoin is another virtual currency, which uses the peer-to-peer system, and it was created in 2011 by Lee Charles – a former Google employee. The Litecoin denoted as LTC is the fourth largest virtual currency by market share. The Litecoin differs from the decentralised Bitcoin, and it is developed using an open source protocol with a centralised system of control. As of 2016, the Litecoin had a market capitalization of $177,400,000 USD with each currency unit having a value of $13.53. The smallest sub-division of the Litecoin is the "Litoshi", but there are also Milli and Micro coin sub-divisions.
The Ethereum virtual currency system is based on Ethereum virtual machines, which serve as executors of peer-to-peer contracts by the use of valued tokens called Ether. The whole Ethereum system works on networked computer systems, which have smart contract executing capabilities built into an open-source platform on decentralised virtual machines. The virtual currency system was created by Buterin Vitalik through crowd funding. The Ethereum was launched in 2015.
The Primecoin whose currency code is XPM and whose sign is Ψ is an open-source peer-to-peer virtual currency, which uses a distinct proof-of-work scientific system. The system searches for chains of prime digits. The virtual currency was created by a person or group people using the name Sunny King. The currency is distributed a software license coded MIT/X11. Primecoin has a market capitalization worth $7.1 million USD and each currency unit is valued at approximately $1.55. Primecoin was developed and initiated in 2013. The currency has Millicoin and Microcoin sub-divisions.
The DAO or the Decentralized Autonomous Organization’ is a system controlled by coded rules, which embedded in computer programs called the smart contracts. The systems’ financial recording and rules of programs are maintained in a block chain. The DAO system is designed to control peer-to-peer smart contract collaboration from a network of databases that are distributed.
Ripple denotes a currency remitting and exchanging networked system, which is created to work as a real-time gross settlement system (RTGS). This virtual currency system was created by David Schwartz, Ryan Fugger, and Britto Arthur and released in 2012. This is the 3rd largest virtual currency system with a market capitalization of approximately $1.4 billion USD. The ISC licensed system has attracted ventures that include major banks and Google who intend to apply it in settling trade balances.
The Blackcoin is also another virtual currency that relies on the peer-to-peer system, and it is developed based on the proof-of-stake system with an open-source model. This crypto-currency was developed by a person or group of people with the pseudonym Rat4 in 2014. The cryptocurrency's system is secured through the mining’ process, which secures its network. The currency is sub-divided into Milli black coins, micro black coins, and "Satoshi", which is the smallest unit.
While this may not be a complete list of all the crypto-currencies that can substitute the popular Bitcoin, it is a comprehensive list of some of the most popular virtual currencies. It is also expected that more crypto-currencies will get into the market as their use gains popularity across the globe.