When talking about cryptocurrencies, many immediately think of Bitcoin. However, other concepts like Ethereum, Tron or Cardano also offer cryptocurrencies, but with entirely different underlying concepts. A deep dive into the evolution of cryptocurrencies.
Everyone talks about it, but what is the appeal of crypto money? Cryptocurrencies are based (with few exceptions) on a technology called Blockchain. This blockchain corresponds to a decentralized cash book in which inter alia monetary transactions in the sense of “person A sends sum X to person B” are noted.
The Benefits Of Blockchain Compared To Online Banking
Decentralization offers several advantages over centralized systems such as online banking or government: blockchains are open to anyone who has computers and / or mobile devices and complementary Internet access.
Constantly advancing digitization makes participation in the blockchain more attractive to more people and institutions worldwide every day. An arbitrary rejection of individuals by a central authority such as a bank is not possible.
Furthermore, the blockchain is available 24 hours a day, seven days a week. The observation of opening times in public authorities or the waiting for the transfer of a transfer in a (SEPA) transfer belong with the block chain of the past. In fact, depending on the blockchain and / or cryptocurrency used, in the worst case, it takes a few hours for a financial transaction to arrive at the recipient. But even here, the technological development is going on very fast, so that the actual execution happens within minutes.
Finally, a blockchain is an audit-proof system that stores one-off transactions without the subsequent possibility of change. A direct manipulation of the blockchain by possible hacker attacks is therefore possible only with very great effort and can be virtually ruled out today. The audit security of the blockchain accordingly permits the clear traceability of all transactions for all participants.
However, some projects are pursuing the idea of precisely preventing this traceability of transactions that have been carried out, thus ensuring greater privacy. One speaks in this case also of Privacy Coins.
Although the blockchain can not be attacked in principle or only with great effort, but a theft of access codes, the so-called private keys conceivable. It ensures the use of the wallet or wallet containing your own cryptocurrencies. From this, you can transfer money from crypto money to other wallets. Currently, the transfer of cryptocurrencies is virtually the only significant application.
This is due to the early development of blockchain technology, which reveals clear parallels to the early BTX system. In Germany, the conditions for today’s online banking in the 1980s were created by its predecessor, Deutsche Post’s BTX system. For example, the innovation, which at that time was revolutionary but not easy to use, made it possible to transfer money via remote communication to another participant in the BTX network.
Like digital money, cryptocurrencies and blockchain technology are subject to historical and technical evolution, even if it may be a little shorter than the history of online banking.
On the well-known Bitcoin as the only noteworthy representative of the first generation of cryptos followed the Ethereum platform, which wanted to eliminate some weaknesses and inefficiencies of Bitcoin and wants to date. However, Ethereum has become more or less “outdated” and is being tackled by new challengers around the “crown of the crypto market”.
With Cardano and Tron, two promising representatives among some other competitors are contesting the market leadership of Bitcoin and Ethereum. Below all the mentioned coins will be introduced shortly.