There’s been a lot of hype around the cryptocurrencies world where its field is always expanding, for all anyone in the crypto community knows. These are the top 5 list of cryptocurrencies to look out in 2019:
Bitcoin is the first cryptocurrency to be ever created that started the whole decentralization movement. Bitcoin is a decentralized network that allows users to transact directly, peer to peer without intermediaries to manage the exchange of funds. Bitcoin can be used to pay for goods and services electronically, unlike traditional currencies and assets, bitcoin is easily accessible, divisible and irreversible. According to Bitcoin, no user is a trusted user and everything must be verified by public consensus which is achieved by a mathematical process called ‘Proof-Of-Work’. As of today, Bitcoin is the world’s highest rank of digital currency with the market capitalization of more than $230 billion and price per coin of more than $12,969.
Ethereum is an open-source and public blockchain-based distributed computing platform for building decentralized applications and operating system featuring smart contract functionality. Ether is a token whose blockchain is generated by the Ethereum platform.
A cryptocurrency researcher and programmer, Vitalik Buterin visualized Ethereum as a platform for developers to write programs on the blockchain. To accomplish his goal he used similar Blockchain designs and protocols as that of Bitcoin’s and improvised it to support applications beyond currency issuance with the implementation of smart contracts.
Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., (US-based technology company). Ripple is both a platform and a currency. It supports tokens representing fiat currency, cryptocurrency, commodities, or other units of value such as frequent flier miles or mobile minutes.The Ripple platform is an open-source protocol which is designed to allow fast and cheap transactions. The platform has its own currency (XRP) but also allows everybody to use the platform to create their own via RippleNet. Unlike Bitcoin or Ethereum, Ripple doesn’t have a blockchain. Instead, Ripple has its own patented technology: the Ripple Protocol Consensus Algorithm (RPCA).
As the number of transactions increased by leaps and bounds, the rate at which the blocks filled up were increasing as well. People had to wait until new blocks were created so that their transactions would go through. This created a backlog of transactions, in fact, the only way to get your transactions prioritized is to pay a high enough transaction fee to attract and incentivize the miners to prioritize your transactions. Besides, rising fees on the bitcoin network contributed to a push by some in the community to create a hard fork to increase the blocksize. Hence, Bitcoin Cash was born.
By the implementation of SegWit which stands for the segregated witness, it brings about the following changes which make Bitcoin Cash a strong competitor in the top 5 cryptocurrencies:
Increases the number of transactions contained in a block
Decreases transaction fees
Reduces the size of each individual transaction
Transactions can now be confirmed faster because the waiting time is decreased
EOS is one of the new cryptocurrencies designed to support large-scale applications. There are no fees to send or receive EOS. Instead, the protocol rewards the entities that run the network periodically with new EOS, effectively substituting inflation for transaction fees.
EOS offers a delegated proof-of-stake mechanism which it hopes to be able to offer scalability beyond its competitors. EOS consists of EOS.IO, similar to the operating system of a computer and acting as the blockchain network for the digital currency, as well as EOS coins. EOS is also revolutionary because of its lack of a mining mechanism to produce coins. Instead, block producers generate blocks and are rewarded in EOS tokens based on their production rates. EOS includes a complex system of rules to govern this process, with the idea being that the network will ultimately be more democratic and decentralized than those of other cryptocurrencies.