It all started with Bitcoin in 2009. The first cryptocurrency was presented and we were promised a revolution in the world of payments. Since then we have witnessed an avalanche of information, rumors and even urban legends about Bitcoin.
For example, in relation to its development. It is assumed that this cryptocurrency was created by Satoshi Nakamoto, but there is a small problem: Satoshi Nakamoto does not exist. It is a nickname for the person or team that was responsible for implementing the technology, and even today no one is clear about their identity. As you can imagine, there are theories of all colors.
What is a cryptocurrency?
But let’s start at the beginning: what is a cryptocurrency or cryptocurrency? It is a digital currency, that is, not physical, that works with a technology to transmit information between peers (P2P, Peer to Peer). What does this mean? That there are no intermediaries or regulatory entities (such as, for example, a central bank).
This decentralization would affect not only the creation and regulation of the currency, but also the transactions. Many of these digital currencies are open source, with algorithms accessible to everyone, so one of their supposed advantages is the transparency of all movements.
Alternatives to Bitcoin
In any case, the Bitcoin boom came back with many more cryptocurrency. From Ferratum we tell you about the main ones. We already anticipate that the differences between all are fundamentally technical. That if such an algorithm is different, that if the processing blocks are larger or smaller, etc.
Litecoin appeared two years after Bitcoin, in 2011, and was created by Charles Lee, a former Google employee. One of the characteristics of Litecoin is its speed, so transactions are processed much faster. Today, there are many independent businesses that accept this currency.
Namecoin is also part of the young cryptocurrency. Created in 2011, like Litecoin, it has a very specific purpose: to register web domains with .bit termination without censorship. When you want to register a domain of the most common, such as .com, you must do so through a company, which after all has a certain veto power. This disappears in the .bit domains, which do not depend on ICANN, the body in charge of regulating domains.
Peercoin is the digital eco-friendly currency. According to its creators, its algorithms and operating mechanisms are more efficient and, therefore, the computer must work less to process it, with the consequent energy savings. Hence the green leaf of his logo. To this day, a few businesses and NGOs accept this currency.
The origin of this currency is an internet meme. Yes, as you read. Surely it sounds: a few years ago began to circulate on social networks the photo of a Japanese dog smiling at camera and surrounded by phrases in Comic Sans. It was Doge. And in his honor, as a joke, this cryptocurrency was named, whose main feature is also an improved algorithm and greater speed. And the joke got out of hand, because it is one of the most used on the Internet.
Ripple is one of those digital currencies that was also created with a specific objective: Instead of being used to purchase products or services through the internet, Ripple would serve as a tool to convert one currency into another, without relying on a house of exchange. And it seems to work, because there are banks around the world that are adopting their technology
Do not worry if it has not been clear to you at all, it is normal, since it is not foreign currency to use, but they involve a new way of understanding and using money. The future? It remains to be seen if Bitcoin, the most developed of all, makes a permanent hole in our lives, making it difficult to know what will happen to others. For now, we will be pending.