Bitcoin still remains the most major and first blockchain implementation. However, people were able to generate different ways of how to use the system.
The creation of variations in Bitcoin has been one of the used yet creative blockchains. These then advertise them often as enhanced and better Bitcoin versions. Also, these are known collectively as altcoins. If you want more information regarding this, you can go through the bitcoin pro live to better understand it.
Litecoins were launched in 2011, and it has a variation from the system of Bitcoin. One of these differences is that generating blocks takes lesser time. In Bitcoin, an average 10 minutes can be consumed to generate a block, but in Litecoin, it can only take 2.5 minutes to generate a new block. This only means that the verification of transactions is completed quickly. Another thing, there is a used hashing algorithm. SHA256 is what Bitcoins uses for the algorithm of proof-of-work, whereas Litecoin uses a scrypt. The script has a feature that makes it hard to create an optimized GPU or CPU hardware for a faster way of solving the puzzle. This then makes the system fair for the miners. Presently, ASICS exists to be used in mining Litecoin.
In 2016, Zcash was recently launched. Just like Bitcoin, it provides secured transactions over a reliable and distributed ledger. However, it is different from Bitcoin since it utilizes a different algorithm of pro-f-of-work called zk-SNARK. Here, it employs a new and different privacy strategy. In the system of Bitcoin, the receiver, sender, and the amount of transferred money are madepublic. In Zcash, it all remains shielded and private. Another thing, before 2017 came to an end, Zcash was able to cross a market cap of one billion dollars.
As previously mentioned, the system of blockchain can be applied to not only cryptocurrencies but beyond that. Here are some novel ideas that are based on billion-dollar-worth contracts.
While the public is the main intention of Bitcoin, Ripple is meant for payment networks and banks. Presently, there is an employed protocol in banks called Society for Worldwide Interbank Financial Telecommunications (SWIFT) that requires intermediary involvements. Aside from that, there are also fluctuations recorded from currency exchange rates that lead to delayed transactions. Ripple allows financial institutions to transfer, remittance, settle, and exchange payments without causing any huge amount in real-time. Although it is not yet completely adopted, lots of banks are already using Ripple for trial phases. One of its significant difference from Bitcoin is that there is a limitation in allowing the audience to join the network. There must be an identification to be done by the computers and ask for permission if needed. Thus, it makes Ripple not public and decentralized.
Next, we have Ethereum, which refers to the applications altered from a Bitcoin currency. It is responsible for providing an app infrastructure to run even without any central server. Just like Bitcoin, Ethereum depends on nodes found across the internet. This then makes the nodes provide the necessary app on the CPU for it to run. For preventing any abuse and eliminating low-quality apps, it requires the application to spend ether- a currency it uses. The Ethereum network-made code is run by Ethereum’s software referred to as the Ethereum virtual machine. Also, smart contracts are used by developers to effectively develop an application that is automatically executed whenever there specified conditions are met.
For example, there is one smart contract that can be shipped a product automatically once the payment is received. DAPs of Ethereum apps will then be launched in hundreds. Examples are the apps that make dealings with prediction software, digital signatures, online gambling sites, and electric car charging management.
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