There are over 1000 cryptocurrencies on the market. the cryptocurrency market is free and decentralized and no one is able to control it through market levers, thus the exchange rate of one particular currency is dependent on the outcome of the initiative that it was created for.
Unfortunately, of the thousands of startup companies, just a handful of them get noticed and actually solve a major problem one or another. The market is plagued with fraudulent companies, ambitious but unrealistic projects, or just incompetent designers who do not understand how they can bring their good idea to fruition. But, certain currencies have had practical applications within the actual world and we’ll be discussing the current situation.
TOP 4 useful cryptocurrencies
Ethereum (smart contracts and DApps)
The Ethereum platform and the cryptocurrency with a similar name were announced by Vitalik Buterin in the year 2014. The principal purpose of the project is to provide a universal platform that allows developers to create decentralized apps and the creation of smart contracts that are independent. After four years, the project has developed into a large network, with 667 apps in operation or being developed, and 1,727,819 smart contracts are created and have been incorporated to Ethereum. Ethereum blockchain.
The development of the cryptocurrency has been hindered due to the issue of increasing its size, frequent hacks and hard forks. However, Ethereum remains an actual cryptocurrency, the use of which is to develop and promotes blockchain technology. being the second cryptocurrency after Bitcoin in the market.
Find out more about Ethereum Learn more about Ethereum Ethereum What is it and its history and what are the main differences between wallets, currencies and mining.
Monero (Anonymous Colonies)
Many believe that Bitcoin can provide anonymity to users, howeve,r this isn’t the case. Every transaction is stored in an open-access database. Therefore, if you know the details of a particular transaction, a participant of the network is identifiable (so-called “pseudonym”). To eliminate the problem of pseudonymity, the developers of Monero introduced a completely anonymized cryptocurrency in 2014.
At the present stage of the development process, Monero successfully copes with the challenge, and the technology of concealed IP addresses, as well as ring signatures, has been successfully integrated into the Monero network. The final stage that will provide users with the best security will be IP “substitution”, and it appears to be soon. For complete privacy, users can use Monero via its TOR browser.
A lot of people consider Monero an alternative to Bitcoin for criminals, but this isn’t all the time. Privacy and anonymity are essential for reputable users of the platform,. they can reduce the chance of theft or burglary.
Siacoin (blockchain cloud)
The Sia project is a way to bring the concept of cloud storage that is decentralized to reality by renting out inefficient storage space on PCs to network members and generating an income stream that is passive. Sia is essentially cloud storage similar to Google Drive, Dropbox or Amazon Cloud but with the crucial difference that it is based on an open blockchain that is totally decentralized.
Clouds that are standard are vulnerability “central” nodes and often in error, they store data that is not encrypted in order to make more money. Sia can be much less expensive as Google Drive, Dropbox, or Amazon Cloud since it does not require the expense of managing multiple servers. Sia could be competitive with Storj and MaidSafe that operating using the same principle However, the developers claim that their invention is superior encryption and data protection technology.
IOTA (Internet of Things)
IOTA is yet another “next generation” cryptocurrency that hopes to become the constantly evolving principal method of payment online. The primary advantage over other competitors is the ability to make payments for free, something that isn’t possible with the other currencies. This was possible thanks to the demise by Blockchain and the advent the Tangle technology. The premise it is used to validate transactions are not done by miners rather by the people who are the ones making the transactions. In simple terms the more people are paying IOTA via smartphones and other devices, the quicker and more reliable the network will function.
The variety of applications for cryptocurrencies grows as their infrastructure improves. It is only time to determine which of these projects can be useful and practical for the marketplace. We only listed some of the best and established networks, and aside from which there are plenty of lesser-known however, they are all beneficial startups.
Post 4 cryptocurrency with practical applications was first published on Companion.