GET TO KNOW THE MARKET’S TOP TRENDING CRYPTOCURRENCIES CRYPTOCOIN REVIEW 2018
BITCOINS’ BIGGEST COMPETITORS – A SHORT REVIEW ON ETHEREUM AND RIPPLE
There is no doubt that Bitcoin is the biggest and most influential cryptocurrency in the financial market, and few people who aren’t active in the crypto community are aware that the Blockchain technology that started Bitcoin has since created more and more currencies alike. Ethereum and Ripple are the two largest cryptocurrencies in the market and any trader or investor should be familiar with the ground-breaking technology they represent.
In 2013, a cryptocurrency researcher and programmer named Vitalik Buterin, first presented the idea of Ethereum and the system was created in July 2015. Ethereum is a computing platform, based on blockchain technology, which is both public and distributed. It enables developers to build decentralized applications and runs smart contracts that allow applications to run as programed, with no fraud or third party interference. Ethereum provides a decentralized Turing complete virtual machine called the Ethereum Virtual Machine (EVM). EVM enables anyone to run any program with any programming language, making the creation of blockchain applications, for any purpose, much more simple. The cryptocurrency is referred to as “ether” and is used to pay for transaction fees and services by application developers. In 2016, the DAO project was hacked and $50 million dollars worth of Ether were stolen by the unknown attacker. Following this incident, the Ethereum community split into two groups: the first group voted to retrieve the stolen funds, using a change in the code called a hard fork. The second group, argued against changing the code, as this violates the very essence of blockchain, as transactions should be unchangeable. This split created two cryptocurrencies: Ethereum Classic – representing the true history of Ethereum, used by members who disagree with the change in code, and Ethereum – representing the corrected version of Ethereum, used by members who were in favor of retrieving the stolen funds. While the price of Ethereum Classic barely reaches $20, Ethereum is worth roughly $300 with the second largest market cap passing $28 billion dollars and a daily trading volume of over $270 million dollars.
Ripple aims to enable secure and instant financial transactions globally, and of any size at minimum cost. As a real-time gross settlement system and currency exchange, it supports fiat currency, commodities, cryptocurrency and other units of value. The distributed open-source internet protocol at the core of Ripple uses a consensus process, distributed across users, allowing payments and exchanges. Ripple enables systems of different financial institution to communicate directly, which is why payment networks and banks have been adopting Ripple for interbank transactions.
XRP is the native currency of the Ripple network. Similar to Bitcoin and other cryptocurrencies, Ripple has a known amount of XRPs to be released, making it a limited asset with a decreasing available supply. Even though the peak price of Ripple, since it’s release in 2013, was under $0.5, it has the third largest market cap of over $8 billion dollars.