The cryptocurrency, which will be the new cash
The growing popularity of cryptocurrencies has led to unprecedented attention to the nature of money. The terms “Theory of money” as a means of accumulation, a measure of value and means of circulation are becoming more common.
Due to the high popularity of bitcoin is gradually transformed from a means of recourse to the means of accumulation. Although at the dawn of its existence the Commission was low enough, so BTC is perfect for everyday calculations. Alas, those days are long gone.
Which of the thousands of cryptocurrencies is able to take his niche and bring digital assets to the masses? Here’s a (far from complete) list of projects that aspire to become real digital money era.
Litecoin is often referred to as digital silver. It was originally intended for everyday use, and the developers still adhere to this goal.
Litecoin is one of the oldest cryptocurrencies. He has four times more coins than bitcoin, and the creation of the block requires four times less time (and therefore the payments are about four times faster).
Because of its origin (the developers used the code of bitcoin) litecoin usually pursues a bitcoin. The affinity of the two projects allows holders of LTC open payment channels in the network Lightning. In the future this should increase the popularity of the cryptocurrency and make it more accessible to a wide range of consumers.
Bitcoin Cash was the result of a split regarding the update of the Protocol SegWit and increasing the size of the unit of bitcoin. It was preceded by long debates about the advantages and disadvantages of each option. A block size of 8 MB helped to increase the speed of transaction processing. The Cash Bitcoin supporters claim that this cryptocurrency has become a real medium of exchange.
Dash — short for digital cash (“digital money”). As the name implies, from the outset, sought to occupy this niche in the market. He’s just like litecoin is a fork of bitcoin and different from the original, additional features for security.
Dash was the first to implement the concept of mastered (supernodes). Although some members of the cryptocurrency community has subjected it to criticism, it is masternode allow the so-called immediate shipment (InstantSend). It will help the Dash to gain popularity as a universal digital currency. Currently, Dash is very popular in South American countries.
Oddly enough, today, Dogecoin is quite popular cryptocurrency. Perhaps its success is due to a rather flippant attitude on the part of users — they just don’t see it as a means of accumulation and willing to spend.
At the time of this writing, Dogecoin is ranked third in the number of daily active wallet after bitcoin and ether.
Monero is probably the most popular anonymous cryptocurrency at the moment (and not only on the darknet, as one might expect based on its features).
Monero is also popular among software developers due to its democratic approach, based on open source. Decentralization is extremely important for safety and is not merely a technical issue — excessive centralization of the community of programmers working on the cryptocurrency, can make it vulnerable to repressive actions of the authorities. That is why Monero is so popular with political activists and organizations like WikiLeaks.
Another popular anonymous cryptocurrency. Zcash for (original Zerocoin) originates from the Bytecoin project. For several years a team of experienced scientists is working to make zcash for the most efficient and secure means of transferring value over the Internet. Methods to maintain the anonymity inherent in her professional mathematicians and cryptographers, stimulate the popularity of the zcash for the increased demand for privacy.
Method of proof with zero disclosure of the underlying zcash for, currently widely discussed by cryptographers and security professionals. It was originally developed by one of the founders of the zcash for, by Alessandro Kassoy.
CitiCash is a new player on the market with an integrated promotion strategy. The team develops the software in such a way as to facilitate the work of cryptocurrency: lightweight, easy address and easy application. This is combined with a comprehensive promotion strategy, aimed at the masses.
In addition to tools to protect privacy CitiCash also has a built-in mechanism of inflation. He encourages the use, not the accumulation and storage of cryptocurrency.
The basis of the Nano (formerly RaiBlocks) is the decentralized model of directed acyclic graphs (DAG). Supporters of cryptocurrencies like to emphasize the fact that transactions are no fees and usually confirmed within 10 seconds. Nano is easier to take the place of traditional currencies, as DAG structure dramatically simplifies scaling.
Theoretically, the Nano can handle an arbitrarily large number of transactions. Currently, the network is able to carry out 7,000 operations per second under ideal conditions; in real conditions was able to achieve speeds of 300 transactions per second. However, even its current level is much higher than the bandwidth of different cryptocurrencies based on the blockchain.
Despite numerous allegations of fraud is a relatively new cryptocurrency Verge (a fork of Dogecoin) can boast a very active user base.
Part of her popularity is due to the rapid rise of prices caused by an active support of a prominent businessman and cryptoanalyst John McAfee and, as some believe, especially coming boom in relation to the underlying technology.
In fairness it should be noted that the Verge has a really good performance and, like most cryptocurrencies, with emphasis on confidentiality.
Recently, the project has signed a partnership agreement with Pundi X startup developing the technology of cryptocurrency payments in retail stores. Cooperation with Pundi X will help wider dissemination Verge.
Electroneum focused on mobile application and poor users coming to the Internet solely from their smartphones. Cryptocurrency is a promising model, however, suffers from low speed.
What cryptocurrency will become the most popular medium of exchange?
Any digital currency that aims to replace the dollar and the Euro, should have the following characteristics:
Stability To the cryptocurrency has become an effective means of payment, people should start to think of its units. This requires maximum stability and balance of supply and demand. If inflation exists, whom it serves?
Wide spread: the Money is entirely dependent on network effects. A significant proportion of their value is tied to practicality, and practicality is growing along with popularity.
Incentives: there Should be good reason to use the cryptocurrency. According to the law of Gresham, people spend the currency that, in their opinion, loses its purchasing power. Accordingly, they lay currency whose value is increasing.
Scalability: the Currency needs to ensure a smooth transaction with a fast growing user base.
Ease of use: the Acquisition, storage and distribution of cryptocurrency needs to be simple and convenient.
It is difficult to say which of the projects listed above will be the winner in this race, if we evaluate them according to the categories listed.
At the moment, litecoin is the most famous and popular of the digital currencies mentioned in this article. However, if a theoretical construct Nano is correct, the network will be able to hold the maximum volume of transactions.
A conceptual way to spread lies, perhaps, in the combination of intuitive mobile wallets with a serious marketing campaign (as in the case Electroneum and CitiCash).