Bitcoin (BTC) and Litecoin (LTC) are two of the oldest cryptocurrencies around, but they also happen to be two of the biggest ones. Bitcoin was created in 2009, while Litecoin came into existence in 2011. Both are peer-to-peer networks that enable anonymous payments where every transaction happens directly between buyers and sellers via their respective wallets. “There is no central authority who controls the network,” says Lior Yaffe, CEO, and founder of Coin Shares, an investment management firm focused on cryptocurrencies. He explains that the main advantages of these networks are speed and security. Let’s see in the article below some of the types of cryptocurrencies.
Blockchain technology
Blockchain or distributed ledger technologies aim at solving several problems when it comes to transactions, currency exchange, ownership transfer, online identity verification, etc. In essence, it aims to create trustworthy information/data storage mechanisms that will not have any single point of failure. This way it creates trust among all participants involved with the system since everyone can verify the authenticity of data without having to rely on third parties or intermediaries.
Smart Contracts
They’re self-executing contracts for agreements between people, companies, organizations, nations, etc. However, smart contracts aren’t “smart” because they solve a lot of traditional business use cases (such as sales contracts). Instead, they are smart because they run perfectly well in blockchains even though they couldn’t work in most other systems. They do so by using cryptography, which allows them to execute conditions such as: if something has happened; if something particular has happened; depending on various inputs.
ICOs
Initial coin offerings are similar to crowdfunding except they require investors to purchase crypto coins instead of equity. The underlying assumption behind this model is that there isn’t enough liquidity in existing exchanges to guarantee high volumes. That means investors must take personal responsibility by storing their tokens long-term. Of course, the opposite could also occur, if the price crashes after the crowd sale, then the investor may lose his entire investment. Either way, only those with strong risk tolerance should consider participating in ICOs.
In conclusion, I would say that you cannot make solid predictions of cryptocurrency. There are too many variables. All we know how to predict with any certainty are cyclic trends, and things tend to go against such cycles. It will be interesting to watch, but predicting anything precise right now is impossible. Check out the types of best Australia online casino games that are trending in online casinos.
