Digital currency is intended to provide as a means of exchange. There are numerous types of cryptocurrency. However, those nine are among the most popular currencies.
1. Bitcoin (BTC)
One of the best acknowledged money-making instruments, Bitcoin is considered an original cryptocurrency. It was developed in 2009 and is open-source software. The person who wrote the whitepaper that created the electronic currency used the pseudonym Satoshi Nakamoto.
2. Litecoin (LTC)
Litecoin was introduced in the year 2011 to provide a different option to Bitcoin. As with other cryptocurrency options, Litecoin is an open-source worldwide payment network that is decentralized; that is, there are no central authorities.
3. Ethereum (ETH)
In 2015, the Ethereum blockchain was created. Ethereum is a kind of cryptocurrency that’s an open-source platform that is based upon blockchain technologies. While monitoring ownership of digital currency transactions, Ethereum blockchain also concentrates on running the program code of any application that is decentralized, which allows the use of developers of applications to pay charges for transactions and services offered through Ethereum. Ethereum network.
4. Bitcoin Cash (BCH)
Bitcoin Cash is a shape of digital currency designed to improve the features of Bitcoin. Bitcoin Cash has increased the size of blocks and allowed for the greater transaction to go through more quickly.
5. Ethereum Classic (ETC)
Ethereum Classic can be described as a variant that is part of the Ethereum blockchain. It has smart contracts running using a similar decentralized platform. Smart contracts are software that functions exactly as they are programmed with no risk of downtime and censorship, fraud, or any other third-party interface. Similar to Ethereum, it offers the value token known as “classic ether,” which can be used to charge users for goods or services.
6. Zcash (ZEC)
Zcash is an electronic currency created on the Bitcoin basis code. It was developed by scientists from MIT, Johns Hopkins and other well-known academic and scientific institutions; it was based on an uncentralized blockchain. The primary feature and difference of Zcash is its focus on the privacy aspect. Although it is not an option accessible to investors on Equity Trust’s platform, customers can transfer and receive Zcash without divulging the identity of the sender, recipient, or the amount of money exchanged.
7. Stellar Lumen (XLM)
Stellar lumen, an intermediary cryptocurrency used to facilitate the exchange of currency. Stellar lets users exchange any currency they own to another person in another currency. Jed McCaleb founded the open-source network Stellar and developed Stellar’s currency of choice in the year 2014.
8. Bitcoin Satoshi’s Vision (BSV)
Bitcoin Satoshi’s Vision (BSV) is the result of the split or hard fork of Bitcoin Cash. The intention is to be more similar to the initial purpose of Bitcoin, specifically decentralization and the use of cryptocurrency for payments.
- Chainlink (LINK)
The Chainlink was launched in June of 2017; the Chainlink was designed to stimulate an international computer network that can provide necessary external information for smart contracts (agreements that are programmed to run upon the fulfilment of certain conditions), which are built on blockchains.
What is the main difference between Bitcoin as well as Litecoin?
Here are a few distinctions among the digital currency:
Litecoin could have quicker transaction times.
The limit on coins in Bitcoin can be reached at the 21-million mark, while that for Litecoin is the equivalent of 84 million.
They run using distinct algorithms. The Litecoin algorithm is “scrypt”, and Bitcoin’s is “SHA-256.”
What is Bitcoin’s function and different Types of cryptocurrency?
Utilizing Blockchain technology, Bitcoin lets users conduct transparent peer-to-peer transactions. Anyone can view the transactions. However, they are protected by the blockchain’s algorithm. While everyone is able to view the transaction but only the person who owns the Bitcoin is able to decrypt it. This is done using a “private key”, and that is provided to every owner.
In contrast to banks, which is a central authority in Bitcoin. Bitcoin users are in charge of the process of sending and receiving money, which enables anonymous transactions to be conducted all over the world.
different Types of cryptocurrency range from Bitcoin, the pioneering digital currency, to Ethereum, known for smart contracts, and altcoins like Litecoin, Ripple, and Cardano. Each cryptocurrency offers unique features, use cases, and blockchain technology, catering to diverse needs in decentralized finance, digital payments, and investment opportunities.
