Released in the year 2009, Bitcoin is the first most established and treasured cryptocurrency in the market. However, it is not single in the town.
In 2011, Bitcoin is followed by Litecoin that is launched by a former Google engineer, Charles Lee. He also helped in founding the renowned digital currency exchange, Coinbase. Litecoin is a decentralized cryptocurrency that helps in making faster transactions in between two users, charging low transaction fees.
Then, in the year 2015, Ethereum came in the picture, incorporating the similar blockchain followed by Bitcoin and faster transaction speed of Litecoin with a few twists. The twists include ‘smart contracts’ on the blockchain network.
Coinbase is supporting the top cryptocurrencies, namely Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. In August 2017, a new blockchain branch is created that helped in installing and keeping these crypto coins in the well-capitalized and visible digital currencies. According to the market capitalization, these cryptocurrencies ranks in the top 10 digital currencies. Other established coins are Neo, Ripple, IOTA, Eos, Neo, and Cardano.
In order to know the growth concept of these cryptocurrencies, you need to look the technologies behind Ethereum and Litecoin. In what prospects, these cryptocurrencies are compared to Bitcoin and why they are preferred among miners, traders, and investors.
1. Litecoin 101
Based on the same code as Bitcoin, Litecoin has some different tweaks. The major difference is Litecoin makes use of Scrypt algorithm that requires a simple mathematical computation as compared to the complex SHA-256 mining algorithm of Bitcoin. Subsequently, as the super-expensive, efficient and specialized mining rigs required for Bitcoin mining, in Litecoin mining they are not essential. Litecoin can easily be mined on a desktop PC or laptop with an efficient graphics card.
As the Scrypt algorithm is not much complex, so Litecoin mining is done at a faster pace. To hash a Litecoin block, it takes just 2.5 minutes; however to place a new Bitcoin block, it takes around 10 minutes. Therefore, transactions made through Litecoin are faster.
2. Ethereum 101
Like Bitcoin and Litecoin, Ethereum is based on the blockchain concept with hashes and blocks, while having some distinctive twists. Supported by ICO in the year 2014, Ethereum explains itself as ‘a shared anonymous global infrastructure’. Additionally, this digital currency has a distinctive application, known as ‘smart contracts’.
The collective computing network, known as EVM (Ethereum Virtual Machine) could be rented out. The participants or miners that makes use of computing power need to pay with Ether tokens and the participants that contribute in the computing power can get these tokens too. Hence, sellers and buyers can independently trade Ether.
Numerous universities and companies have been made an attempt to legitimize Ethereum and promote the cryptocurrency as open-source and decentralized platform. It also helps in developing the decentralized applications. Ethereum not only helps startups, but also the technology giants, such as Microsoft, Intel, and behemoths of finance, namely Credit Suisse and JP Morgan.
Which is most valuable cryptocurrency?
Bitcoin is the most frequently traded and valuable cryptocurrency. Post a great price surge in the month of November last year, it reached to a mark of $20,000 by the end of December 2017. Then, after some weeks, it settled down at $15,000 after the regulators of South Korea mulled the ban on its trading. When talking about Litecoin, it is known as “silver to Bitcoin’s gold” and it followed the same trend and now possesses a good value in the market. In the last 12 months, Ethereum has made its own way and surpassed the mark of $1,000 in the beginning of January 2018.
Bitcoin, Litecoin or Ethereum
It is quite difficult to choose in between these cryptocurrencies. Nobody can predict the value increase of any of these digital currencies. Yet, all of these are not regulated and depends on the demand and supply in the cryptocurrency market. However, as discussed, there are some difference in between them that should be known before making an investment in purchasing, mining, or trading them.
Currently, if you want to get into the mainstream cryptocurrency mining, then Bitcoin is on the top. The cryptocurrency has unmatched popularity, visibility and possesses highest market cap. On the other side, it is not easy to mine this cryptocurrency as it requires a plenty of resources and massive amount of electricity. In the last year, the Bitcoin price has increased to 1,000 percent that explains the real growth potential of Bitcoin.
The digital currency, Litecoin has its own advantages. It is created by a pseudonym that was an active entity earlier in the crypto community. It has a potential that offers different uses of Litecoin in comparison to Bitcoin. Unlike Bitcoin, still it is more profitable to mine.
When talking about the Ethereum, it has a great support of the EEA (Enterprise Ethereum Alliance) that brings Fortune 500 companies, startups, technology companies, and research institutions together. Ethereum has the major benefit of creating decentralized applications over Bitcoin and Litecoin. And similar to Bitcoin, Ethereum has spawned many coins that are built on the blockchain technology.
Overall, you can invest in the cryptocurrency that sounds appealing and do proper research before making an investment.