Get to know your crypto!
Did you know there are over 5000 cryptocurrencies listed on exchanges? Do you know your Bitcoin from your Ripple or your Cardano from your Ethereum? At Knightsbridge Incorporations we can help you with any queries regarding cryptocurrencies.
Let’s take a look at some of the most common cryptocurrencies:
Bitcoin (BTC)
Released in January 2009 by Satoshi Nakamoto, this was the world’s first decentralised peer to peer electronic cash system. Bitcoin was the first cryptocurrency and the first to use blockchain technology. With Bitcoin, each transaction happens directly between users, thus there is no need to use a third party, for example, banks. There will only ever be 21 million bitcoins.
Ethereum (ETH)
The Ethereum network launched in 2015 uses blockchain technology to enable users to code and release their own Decentralised Applications (dApps) and create smart contracts. Ether is the cryptocurrency used on the Network and Ethereum is the most actively used blockchain.
Litecoin (LTC)
Litecoin released in 2011 is actually a fork of Bitcoin. So it used to be part of Bitcoin’s blockchain, but split and developed its own. So it is similar to Bitcoin, but it has a maximum of 84 million Litecoin and has a much faster transaction speed. Litecoin transactions are generally much cheaper and so is often used for micropayments – small payments.
Ripple (XRP)
Released in 2012, Ripple is a cryptocurrency that underpins a payment network called RippleNet and is designed to be used by banks and financial institutions to make their payments faster. Ripple operates in a very different way to other digital currencies and the biggest difference is that Ripple is not decentralised, it is centralised as the company behind Ripple own most of the tokens and thus can control it.
Cardano (ADA)
Founded in 2015, Cardano is a public, open source and decentralised blockchain,using the Proof of Stake (PoS) consensus mechanism. Cardano and it’s native cryptocurrency have become increasingly popular with a focus on provenance and banking the unbanked. PoS works by selecting validators in proportion to their stake in the cryptocurrency. PoS is much more energy-efficient than Proof of Work (PoW), which uses computational power.
The cryptocurrency world can be a daunting place with many new terms and technologies. At Knightsbridge Incorporations we can help guide you and explain this brave new world.
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