Which Cryptocurrency Has Superior Technology

Talking about cryptocurrencies, it is important to mention that a lot of the projects are copies either of Bitcoin or Ethereum.

by Ivan Penkov
10 May • 3 min
In Tech

The original blockchain was designed to support value transfer and a digital currency with the goal of competing in the payments market. It offered a novel technology that can also potentially be applied in other areas in addition to payments. Even though there are many spinoffs of the technology, the main goal remains - to coordinate and facilitate agreement on transaction data.

In general, to have a public blockchain, one needs a cryptocurrency (a unit of account), which is used to pay for the efforts of the miners that maintain the network. In a private blockchain, there is no need for a cryptocurrency because the computing power is provided and paid by a central authority. Talking about cryptocurrencies, it is important to mention that a lot of the projects are copies either of Bitcoin or Ethereum. There is a very small number of coins that are truly unique. Most of the coins backport everything from Bitcoin. The biggest innovation, still, is in Bitcoin and some of the smartest cryptographers are working on its code base. Around 80% of the academic blockchain research is based on Bitcoin.

 

vision with blockchain technology text

 

Monero - The Unique Coin

One of the unique coins that has its own unique code base is Monero. Monero cannot be compared with any other cryptocurrency. The idea behind Monero is to be able to transact absolutely anonymously. It is the most private coin. Monero provides complete privacy of transactions on the blockchain. By default, there is no trace of anything that has happened. There is no way to track the balance of anyone nor to track transactions. No other cryptocurrency can compete with the privacy of Monero. Monero has Stealth Addresses, which is similar to having a “virtual P.O. box” instead of using your actual address. This way your transactions cannot be linked back to you. It has Ring Signatures, which means that there is no way a transaction can be tied back to a specific individual. Your transactions are mixed with hundreds of other transactions together. In other words, the digital fingerprint of your money is mixed with the fingerprint of others, which makes it impossible for anyone to trace back. The supply of coins is capped at 18.4 million coins, after which there will be a 0.86% inflation rate per year. This way, the network will continue paying the miners for securing the blockchain.

 

Monero logo

 

DAG Coins

Apart from Monero, the Directed Acyclic Graph (DAG) coins are unique in their nature, but yet to be proven for being safe. There are three main DAG currencies - IOTA, Byteball, and Nano. Byteball is the most interesting of them because it is anonymous, it has declarative smart contracts, a built-in BTC exchange app, and their DAG does not require mining, there are no blocks. The distribution is fair because most of the GBYTE coins are given to Bitcoin holders in the form of periodical airdrops.

 

Byteball logo and slogan

 

Private Blockchain Projects

Some of the private blockchain projects that offer realistic objectives for business applications and which have been through thorough research include Deloitte, Hyperledger, Microsoft Azure, R3, and Swirlds. Swirlds uses new and more efficient system than a blockchain called “hashgraph”. IBM and Microsoft aim at dominating the Blockchain-as-a-service (BaaS) space. There are already running pilots of those technologies.

 

(The views and opinions expressed by our contributor(s) in this article should not be considered financial advice, neither treated as expression of Coins.Online’s view. Cryptocurrency trading and investing is risky and market participants are advised to always conduct a thorough research.)

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