First came e-cash, which then evolved into Bitcoin. From there, a whole new world of currency has emerged known as cryptocurrency, which is a virtual, decentralized currency system that actually only exists as a computer file with transactions recorded in a ledger. It’s an Internet-based system of money that goes beyond traditional currency exchange by offering a global system that everyone can use to buy products and services all over the world. However there are bitcoin alternatives to look out for.
While Bitcoin has been viewed as the pioneering cryptocurrency and continues to be one of the most popular ones to use, literally hundreds of other cryptocurrencies continue to appear to offer alternatives and are just as valuable and actively traded. Here are some examples of this new cryptocurrency that moves between digital wallets:
- Litecoin: Launched in 2011, this is an open-source digital currency that is based on the bitcoin protocol but can be mined using standard computers rather than higher computing power. Despite relying on conventional computers, Litecoin has been touted as having faster transaction confirmation times and improved storage efficiency compared to other cryptocurrency. It has been listed as the second largest cryptocurrency after Bitcoin.
- Dash (Previously known as Darkcoin): Offering more anonymity than other cryptocurrency, it uses a decentralized mastercode network called Darksend that turns the transactions into nearly untraceable ones. Dash can be mined using a CPU or GPU. Its fan following started building soon after its 2014 launch.
- Namecoin: As another offshoot of Bitcoin, this decentralized open source information and transfer system offers an additional option that is focused on continued innovation in the altcoin industry. It is known for being the first to implement a decentralized DNS, which allows it to operate outside of the regular Internet and governance by Icann, and merged mining.
- Primecoin: Considered to be one of the more innovative types of cryptocurrencies, it also is a derivative of Bitcoin but introduces a proof-of-work aspect that is based on prime numbers. This unique capability adds greater security, mining, and currency value as well as generates prime number chains known as Cunningham chains and bi-twin chains that are of interest to mathematicians and their ongoing research.
- DevCoin: Billing itself as ethical cryptocurrency, this currency was created with the intent of helping to fund any type of open-source project that someone wanted to build. Started in 2011, is based on Bitcoin, but mining is considered to be much easier. It is slowly adding merchants that will accept this type of cryptocurrency.
- Feathercoin: Based on litecoin, this cryptocurrency offers regular updates with new features, including a mining calculator, QR code generator, button generator and feathercoin API as well as digital wallets for Mac, Linux, Windows and Android. Other features include protections from forking by group mining.
- Terracoin: This cryptocurrency is also based on Bitcoin and provides extensive information to help encourage new users for its currency. It was first mined in 2012 and boasts a transaction confirmation time of just two minutes.
- Ven: San Stalnaker created this digital currency for his business club known as Hub Culture. Launched in 2007, the currency is entirely backed by reserve funds to remove the risk of inflation as much as possible. The digital currency is now focused on socially responsible business segments with the intent of creating a currency that supports the environment versus traditional currencies that do not.
- Peercoin: This cryptocurrency aims to be the most secure and valuable currency by looking to its members to help build up its network. It views its members as responsible for making mining more efficient and safe for everyone. Peercoin is considered to be the fourth largest among all digital currency.
- Novacoin: The digital currency bills itself as using hybrid Proof-of-Work (PoW) and Proof-of-Stake (PoS) block generation methods, differentiating itself from other altcoins. The protection scheme integration aims to deter any abuse by mining groups.
- Megacoin: This is one of the few digital currencies to truly focusing on branding itself to make it more mainstream for audiences around the world. Based in New Zealand, it concentrates on a very consumer-friendly approach with the selling point that this is “the people’s currency.”
Besides these alternatives to Bitcoin, there are literally hundreds more that are vying for attention. While they may not all go the distance, the idea here is that numerous people and businesses around the world are slowly becoming accustomed to the concept of a new type of currency. It even offers a way for developing countries to become more involved within the global business environment.
As more consumers demand to shop anywhere in the world and as more focus is put on carbon-neutral business, the idea of cryptocurrency is catching on as more people to see the potential for how it can be used to the local and global economies.
