What You Need To Know, Now: Top Cryptos, Described In A Few Sentences.

What You Need To Know, Now: Top Cryptos, Described In A Few Sentences.

AIRDROP 14
BLOCKCHAIN AND CRYPTOCURRENCY NOTES

15 Cryptos
In Under 100 Words Each

January 17, 2018
Byron Berry, CFA
bb@coreventusinc.com
(647) 302-8276
Abhishek Jain

for more research, see www.coreventusinc.com

OVERVIEW
With the rise of new altcoins, the massive growth of the overall crypto market and the recent pullback, it is worthwhile to examine the top 15 cryptos.  We have six currencies, two money-transfer protocols, six virtual global computers and one application.  At least one of them doesn’t really exist yet as a product, although the coin certainly does.  Even despite recent correction, the smallest of these has a coin market capitalization near $3 billion.

Bitcoin – BTC – $176.0 bn

BItcoin was the first major cryptocurrency and has become a store of value, sometime called “digital gold”. Hours-long waits to confirm transactions and fees averaging over $20 per transaction mean it is not a medium of exchange.  Developers are working on resolving this issue, a process called “scaling”, although no solution is imminent or proven. Bitcoin remains very secure and has never been hacked (although it has been stolen from third parties). Bitcoin is completely decentralized, has no CEO or management team and can only be controlled by a vote of 50%+1 of the circulating bitcoins.

Ethereum – ETH – $89.9 bn

Ethereum is a decentralized virtual global computer.  Using a proprietary cryptocurrency, the Ethereum Virtual Machine (EVM) runs smart contracts and distributed apps (DApps). Smart contracts are pieces of code which direct the EVM to perform certain tasks, all run over a public, decentralized and fully encrypted blockchain. The EVM is theoretically as capable as any centralized computing system. With over 250 Ethereum-based ICOs completed and more than 50 announced, Ethereum is a large and expanding ecosystem. Ethereum is facing issues around “scaling”, which requires massively increasing transaction volume without slowing down transaction times or increasing transaction costs.

Ripple – XRP – $41.5 bn

Ripple is a payments and money transmission system.  Unlike many other cryptocurrencies, Ripple was developed by a for-profit company, Ripple Labs.  Furthermore, Ripple and Ripple Labs are very well integrated into traditional finance.  Many top-tier banks are partners, and large Silicon Valley VC’s are investors.  Ripple is extremely fast and cost-effective at sending money across networks, with settlement times of a few seconds and transaction fees of one cent.  However, it is currently special-purpose, used for transfers where one might now use wire transfers or Western Union, not for everyday payments.

Bitcoin Cash – BCH – $28.1 bn

Bitcoin Cash was created on August 1, 2017 by a hard fork from bitcoin.  Every BTC owner got an equivalent amount of BCH.  Bitcoin Cash was developed to deal with the scaling problems of bitcoin, which has slow and expensive transactions.  Developers increased the block size from 1 MB to 8 MB, with a roadmap to 32 MB in 2018, and hypothetically 1 TB in the future.  As more transactions per block means more transactions confirmed per second at lower cost this should enable BCH to be used for everyday transactions.  Proponents refer to BCH as the “real bitcoin”.

Cardano – ADA – $13.6 bn

Cardano is a ethereum-like cryptocurrency and global virtual computer (which hasn’t been built yet!). Cardano developers believe Cardano is a 3rd generation blockchain and cryptocurrency. They are working with academic researchers to build it, from scratch, eliminating issues that flummox Gen 1/2 cryptocurrencies.  Scalability – transactions can be slow and expensive on Ethereum and particularly Bitcoin, and ADA address that. Interoperabillty – Cardano will communicate between different blockchains.  Sustainability – economics modeled on DASH (another crypto), and there will be a formal constitution. Interesting, but still vaporware.

Litecoin – LTC – $9.3 bn

Litecoin is one of the first “altcoins”, cryptocurrencies based on a blockchain but independent from Bitcoin.  Developed by Charlie Lee, a former Google employee and bitcoin enthusiast, It was released in October 2013, and was a fork from bitcoin.  It differs primarily in that it emphasizes transaction speed.  It also has much lower transactions costs than BTC.  It has often been touted as “silver” compared to bitcoin’s “gold”.

NEO – NEO – $7.5 bn

NEO is a global computing environment with smart contracts and digital assets.  It is similar in function and goal to ethereum.  However, unlike ethereum (or bitcoin), NEO is extremely centralized, with only seven nodes currently operating, as opposed to thousands of miners of ethereum or bitcoin.  This centalization does allow for faster decision-making; however, these decisions might not be in the interest of the majority of users.  NEO is based in China, and this has caused some concerns due to the government’s periodic crackdowns on cryptocurrencies, exchanges and ICOs.

NEM – XEM – $7.3 bn

NEM (originally an acronym for New Economy Movement) is a blockchain environment with functionality similar to etherium.  It was not designed as a cryptocurrency, making it quite distinct from bitcoin or litecoin, etc.  NEM uses a Proof-of-Importance timestamping and confirmation system – this uses far less energy than Proof-of-Work timestamping and confirmation used by bitcoin and ethereum (although ethereum does have a roadmap to a similarly less energy intensive timestamp).  Currently NEM is not fully open-source, rare for cryptocurrencies;  future releases are supposed to be fully open-source.

Stellar – XLM – $6.8 bn

Stellar is primarily focused on payments.  It is most like ripple.  Like ripple, it has partnerships with many companies, although primarily in payments and not-for-profits as opposed to financial institutions.  Unlike ripple, stellar is a not-for-profit organization, with an explicit social mission to reduce the cost of money transfers and remittances.  Stellar was co-founded in 2014 by Jed McCaleb, who is well known in the crypto community for founding RIpple Labs, and earlier, the infamous Mt. Gox exchange.  Stellar’s board and advisors include well-known payments executives and Silicon Valley VCs.

IOTA – MIOTA – $6.4 bn

IOTA is focused on crypto for the Internet of Things (IoT). It does not use blockchain technologies, instead using Directed Acyclic Graph (DAG) technology, which IOTA calls the “tangle”.  IOTA is also centralized, requiring a central “Coordinator”, to make transactions secure.  Also, IOTA uses Winternitz hashing cryptography instead of the industry-standard ECC – it is much faster, thus enabling nanotransasctions;  this has caused security problems, which have apparently been fixed.  Transactions are free using IOTA. While a IOTA is a not-for-profit HQ’d in Germany, plans to monetize by selling the 2.5 quadrillion pieces of data generated daily.

EOS – EOS – $5.7 bn

EOS is a competitor to ethereum, and somewhat similar to Cardano.  It is a global virtual computer supporting the development of distributed apps (DApps).  Some refer to it as “Blockchain 3.0”, as opposed to “Blockchain 1.0” (bitcoin and other simple currencies) and “Blockchain 2.0” (ethereum and related DApps). EOS supporters point to the potential  for millions of transactions per second, no transaction fees and other significant improvements over Blockchain 2.0 projects such as ethereum.  CTO Dan Larimer was also a founder of Bitshares and Steemit, two of the most successful DApps. Ironically, EOS’s ICO was funded on the Ethereum blockchain.

DASH – DASH – $5.6 bn

DASH – short for Digital Cash – is a pure currency, like bitcoin or litecoin.  It was created in a fork from litecoin on January 18, 2014.  Similar to bitcoin and litecoin, it is mined via a Proof-of-Work timestamping – these miners get 45% of proceeds.  There is an administrative layer (Masternodes) to the system which is paid another 45%; and 10% goes to the operation of the currency, which is viewed as a way of making the currency self-sustaining. whereas bitcoin development is done by outside entities with potential conflicts.

Monero – XMR – $4.6 bn

Monero is a privacy-oriented currency.  It was launched in April 2014.  While it has a distributed ledger of all transactions via a blockchain, the ledger is not public like it is in bitcoin (for example).  Further, the identity of the sender and the receiver are obscured, making Monero nearly anonymous.  By contrast, bitcoin and litecoin are pseudonymous.

Tronix – TRON – $3.5 bn

TRON briefly became a top10 cryptocurrency by market cap after the controversial John McAfee tweeted out strong support for it in late 2017.  Since then, TRON has been accused of plagiarizing its White Paper from FileCoin and overstating a partnership with a Chinese video streaming company. Tronix is a currency which compensates content owners for sharing their content.  We have to admit – we really don’t understand how TRON is worth much, and see every reason to keep a safe distance.

Bitcoin Gold – BTG – $2.9 bn

Bitcoin Gold was created in a fork from bitcoin BTC on November 12, 2017.  The stated purpose of the fork was to reverse centalization of bitcoin mining by using an ASIC-resistant hash, meaning BTG can only be efficiently mined with GPU rigs.  BTG has been plagued by controversies since the fork, with accusations of hidden mining fees and BTG missing from wallets.

DISCLAIMER: AIRDROP is presented as an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific cryptocurrencies or related commodities or securities. Coreventus Inc. and/or its employees may own cryptocurrencies, some of which may be mentioned in AIRDROP.

 

By | 2018-05-07T19:27:51+00:00 May 7th, 2018|Uncategorized|0 Comments

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