If you’re new to the world of cryptocurrency, you might be wondering what the technologies in crypto are about, and maybe you are also wondering what all the fuss is about and. Crypto is here to stay and is constantly being improved to make it as viable and applicable as possible. Here’s a quick rundown of the top three technologies in crypto that are currently making waves and we will also get to the top 3 crypto projects that are using these technologies.
The first and most important technology in crypto is blockchain. A blockchain is a distributed database that allows for secure, transparent and tamper-proof transactions. This makes it perfect for use in financial applications like cryptocurrency exchanges and payments.
2- Smart Contracts
Smart contracts are programs that run on blockchain platforms like Ethereum. They can be used to automate transactions and enforce agreements between parties. This makes them perfect for use in a wide range of applications from supply chain management to insurance.
3- Decentralized exchanges
A decentralized exchange is an exchange that does not rely on a third party to hold or manage funds. This type of exchange offers many advantages over traditional centralized exchanges, such as increased security and privacy, as well as reduced fees. Some popular decentralized exchanges include IDEX, EtherDelta, and Binance DEX.
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Bitcoin is making use of all major technologies in crypto.
Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also features decentralized application hosting, but unlike bitcoin et al., ethers have objects user accounts with passwords called “keys”.
Smart contracts are applications that run exactly as programmed without any possibility of fraud or third party interference. Etherium is also making use of all major technologies in crypto.
Monero (XMR) is an open-source cryptocurrency created in April 2014 that focuses on privacy, decentralization, and scalability.Monero uses a public ledger to record transactions while new units are created through a process called mining.
Monero aims to be private, secure, and untraceable currency. It accomplishes these goals through features like ring signatures and stealth addresses. Ring signatures mix a user’s account keys with public keys obtained from the Monero blockchain prior to each transaction. This makes it impossible for outside observers to link together individual transactions on the blockchain or determine the origin of funds. And just as the previous two crypto projects, Monero is also making use of all major technologies in crypto.
Technologies in Crypto
Bitcoin vs Ethereum vs Monero
Bitcoin, Ethereum, and Monero are all cryptocurrencies that use blockchain technology. Bitcoin is unique in that there is a finite number of them: 21 million. Bitcoins are created as rewards for “mining” – which is basically solving complex mathematical problems using computer processing power – which requires more energy as more bitcoins enter circulation (hence why bitcoin “mining” has been criticized for its large carbon footprint). While you can mine bitcoins solo or join forces with others in “pools”, most people now purchase their bitcoins on exchanges using fiat currency (like USD). You can also purchase goods and services with bitcoins.
Ethereum is unique in that it runs on “smart contracts”. These are programmable transactions that can be used to run decentralized applications (dapps). For example, a dapp could be used to create a decentralized marketplace where buyers and sellers can trade directly without the need for a third party (like eBay or Amazon). Ethereum’s native currency is called Ether, and like Bitcoin, it can be bought and sold on exchanges using fiat currency.
Monero is unique in that it focuses on privacy. Transactions made using Monero cannot be traced back to specific users, making it ideal for those who value their privacy. Monero’s native currency is called XMR, and like Bitcoin and Ethereum, it too can be bought and sold on exchanges using fiat currency.
Bitcoin, Ethereum, and Monero are just a few of the many different cryptocurrencies that exist today. With new ones being created all the time, it can be hard to keep track of them all! They are all interesting cryptocurrencies with their own unique benefits. If you’re considering investing in any of them, be sure to do your research first!
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