Buzz
By now, it would be hard to find someone who hasn’t heard of Bitcoin. Recently hitting a market value above US $18,000, it's impossible to ignore the widespread media focus. But despite all the hype, many are still unsure about what Bitcoin actually is. Words like 'cryptocurrency' and 'blockchain technology' are often mentioned, but their meanings can be elusive to those new to the topic.
In simple terms, cryptocurrencies are digital alternatives to traditional money systems. They are entirely digital currencies that use cryptographic techniques to secure transactions. Cryptocurrencies are decentralized—there’s no central authority or regulating body tracking how the money is used, by whom, or where it's headed, which makes them appealing to many. The backbone of this technology is blockchain, a type of public ledger that records every transaction anonymously.
Bitcoin remains the original and most well-known cryptocurrency, but many alternatives—known as 'altcoins'—are gaining popularity. These altcoins operate on similar technologies to Bitcoin. Below, we’ve listed some of the most noteworthy altcoins in the market. Who knows, one of these might be the next to soar, reaching $20,000 per unit or more, just like Bitcoin did.
10. Ethereum
Ethereum, the second most notable player in the cryptocurrency world, is an altcoin created by the Ethereum Foundation, a Swiss nonprofit, in 2014. The foundation's mission is to provide decentralized tools to the world, enabling the creation of decentralized apps and contributing to a free, accessible, and trustworthy global Internet. The currency used within Ethereum is called ether.
Unlike Bitcoin, which uses blockchain solely to track transactions, Ethereum operates as an open platform that allows anyone to develop or use decentralized applications powered by blockchain technology. It is ideal for apps that automate peer-to-peer interactions or promote group actions within a network. For instance, Ethereum can be used to build peer-to-peer marketplaces or manage debts and funds, all without the need for an intermediary. In simple terms, Ethereum enables developers to create applications without creating their own blockchain.
9. Dash
Dash, a cryptocurrency inspired by Bitcoin, focuses on providing an easy-to-use, affordable, and mobile-friendly currency that can be spent online or in person. The platform prioritizes low transaction fees, and all transfers are secured.
Dash offers two key features designed to enhance the cryptocurrency experience—InstantSend and PrivateSend. InstantSend allows users to complete transactions almost instantly, unlike Bitcoin, where a similar transaction might take up to an hour. PrivateSend enables users to blend their coins with those of other senders, creating a transaction with multiple outputs for added privacy, though it doesn't guarantee full anonymity.
8. Zcash
Launched in October 2016, Zcash is a privacy-focused cryptocurrency. While it shares many similarities with Bitcoin—such as both having a 21 million unit cap and similar supply models—there’s a key difference: whereas Bitcoin records every transaction on a public ledger, Zcash strives to offer genuine anonymity. Its mission is to create a global, open economic platform where no one is excluded, with a belief that decentralization is the foundation of security and fairness.
But isn't Bitcoin anonymous since it's not tied to your name? While it's true that Bitcoin transactions don’t directly use personal names, they can still be traced to individuals through the public blockchain combined with IP addresses. Zcash, however, is designed to ensure true anonymity. It allows users to make transactions that are 'hidden,' meaning no details about the buyer, seller, or transfer amount are recorded on the blockchain. The only information stored is the time of the transaction. However, only around 10% of Zcash transactions are hidden, as this requires more processing time and computational resources.
7. Monero
Monero is another privacy-centric cryptocurrency, designed to be entirely untraceable. Every transaction and account is kept private, ensuring that they cannot be linked to any real-world or online identity. Unlike the other cryptocurrencies mentioned, Monero is not based on Bitcoin's model.
Monero claims to be the only cryptocurrency that guarantees full privacy for the seller, buyer, and transaction amount in every single transaction. If you're paying close attention, you’ll notice that Zcash makes a similar claim. However, the key difference is that while Zcash provides an option for private transactions, all Monero transactions are automatically private by default.
6. NEO
NEO has often been referred to as the 'Chinese Ethereum.' The two projects share many similarities, including the ability to support decentralized apps and smart contracts, and both are open-source and nonprofit. However, NEO benefits from the support of the Chinese government, unlike Ethereum, which operates without backing from any national government.
NEO differs significantly from Ethereum in the programming languages it supports. While Ethereum relies on its own language, Solidity, for creating contracts and apps, NEO allows developers to use several popular programming languages, including C# and Java, with plans to add Go and Python in the future. This is especially appealing to programmers already familiar with these languages.
5. Stellar
Launched in 2014, Stellar is an open-source network designed to facilitate payments between financial institutions. It enables 'seamless' currency transfers, meaning you can send money in US dollars to a friend in Australia, and they will receive it in Australian dollars. Stellar also has its own native cryptocurrency, called lumens.
Lumens are used to pay transaction fees when transferring other currencies. This system of charging fees in lumens helps protect the Stellar network from external attacks, such as DDoS attacks, where malicious users might attempt to overwhelm the system with excessive transactions.
4. Litecoin
Launched in October 2011, Litecoin arrived two years after Bitcoin. It shares many features with Bitcoin, but also presents some important differences. For instance, the maximum supply of Litecoin is 84 million coins, four times the cap of Bitcoin. Litecoin also benefits from faster transaction processing due to shorter block generation times. Moreover, Litecoin is fully compatible with Bitcoin’s API, making it simple to integrate into applications that already support Bitcoin. With Bitcoin’s global prominence, this is a big advantage for Litecoin.
Litecoin’s website showcases a list of over 80 online merchants who accept Litecoin payments, and this list continues to grow. Litecoin users can buy everything from art and clothing to gift cards and many other products.
3. Dogecoin
Ah, Dogecoin, the meme-inspired cryptocurrency of Reddit. Its logo features the face of a Shiba Inu dog, the same dog from the famous Doge meme. Primarily, Dogecoin is used for tipping online, especially on Reddit, where users send Dogecoin to the authors of posts or comments they enjoy, a more intense way of showing appreciation than just liking a post.
However, tipping is not the only thing Dogecoin is known for. The Dogecoin community has famously raised funds for a variety of causes, such as sending a bobsled team to the Olympics and supporting water well projects in developing countries, among other charitable efforts.
2. Golem
Golem is an open-source, decentralized network that enables users to rent out their unused computing power. This allows Golem to function like a supercomputer capable of running almost any program. For instance, it can complete rendering tasks in a matter of minutes, tasks that would otherwise take days. Additionally, it can perform complex business analysis and predictions more efficiently and cost-effectively. One area where Golem could make a significant impact is in scientific research, helping in fields as diverse as DNA analysis and the search for alien life.
At the moment, Golem is still in its early phase, known as Brass Golem, where it is mainly used for rendering tasks. As the platform evolves through further testing and development, its capabilities will expand, possibly transforming the way we approach computing.
1. Ripple
Ripple is a cryptocurrency designed to provide a fast, secure, and efficient way to send money across the globe. The company argues that the global payment system is still stuck in the outdated “disco era,” relying on old infrastructure that hasn’t kept up with modern needs. RippleNet, their platform, aims to give users fast transactions with transparency, where funds can be traced in real time.
Ripple's digital currency, XRP, is capable of processing 1,500 transactions per second, and its scalability can match that of Visa’s transaction volume. Payments are settled in just four seconds, a huge improvement over Bitcoin’s speed of up to an hour or Ethereum’s two-minute transaction times.
