Several major currencies in the digital currency circle: 1. Bitcoin (BTC for short); 2. Ethereum (ETH for short); 3. USDT (Tether); 4. Litecoin (for short) LTC); 5. EOS (referred to as EOS); 6. Dash (DASH); 7. Ripple (XRP) and so on.
Several mainstream currencies in the digital currency circle
1. Bitcoin (BTC, referred to as BTC )
It is currently the most widely used digital currency. It was born on January 3, 2009. It is a peer-to-peer (P2P) digital cryptocurrency with a total of 21 million coins. The Bitcoin network releases a certain number of coins every 10 minutes and is expected to reach its limit in 2140. Bitcoin is called "digital gold" by investors. Bitcoin is generated through a large amount of calculations based on a specific algorithm and does not rely on the issuance of a specific currency institution. It uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transaction behaviors, and uses cryptographic design to ensure that all currency circulation Link security ensures that currency value cannot be artificially manipulated by mass production of Bitcoins. Design based on cryptography allows Bitcoin to be transferred, paid and redeemed only by real owners. It also ensures the anonymity of currency ownership and circulation transactions.
Bitcoin is favored by technology enthusiasts due to its decentralization, global circulation, low transaction fees, anonymous circulation and other characteristics. Recently, traditional financial institutions such as Wall Street and central banks of many countries have begun to study Bitcoin blockchain technology. The Japanese government has officially recognized Bitcoin as a legal payment method, and more and more Japanese merchants accept Bitcoin payments.
1. Advantages of Bitcoin
Freedom of payment; you can pay and receive any amount of funds instantly, anytime and anywhere. No bank holidays, no borders, no imposed restrictions. Bitcoin allows its users to have complete control over their funds.
Extremely low fees
Currently there are no or minimal fees for processing Bitcoin payments. Users can include handling fees in transactions to gain processing priority and receive transaction confirmations from the network faster. In addition, there are merchant processors that assist merchants in processing transactions, converting Bitcoin into fiat currency every day and depositing funds directly into merchants' bank accounts. Because these services are based on Bitcoin, they can offer far lower fees than Pay Pal or credit card networks.
Reduce risk for merchants
Bitcoin transactions are secure, irreversible, and do not contain customers’ sensitive or personal information. This avoids merchants losing money due to fraud or fraudulent chargebacks and eliminates the need to comply with PCI standards. Merchants can also easily expand into new markets in places where credit card usage or fraud rates are unacceptably high. The end result is lower fees, a larger market
, and fewer administrative costs.
Security and Control
Bitcoin users have full control over their own transactions and merchants cannot impose fees that should not
be or are not easily discovered that may occur in other payment methods. Paying with Bitcoin eliminates the need to tie personal information to the transaction, which provides great protection against identity theft. Bitcoin users can also protect their funds through backup and encryption.
Transparent and neutral
All information about the Bitcoin funding supply itself is stored on the blockchain and can be inspected and used by anyone in real time. No individual
organization can control or manipulate the Bitcoin protocol because it is cryptographically protected. This allows Bitcoin Core to be believed to be completely neutral,
transparent and predictable.
2. What are the disadvantages of Bitcoin?
Acceptance - There are still many people who don’t know about Bitcoin. More businesses are accepting Bitcoin every day because they want to benefit from it, but the list is still small and more businesses still need to support Bitcoin in order to benefit from the network effect.
Volatility
The total value of Bitcoin in circulation and the number of businesses using Bitcoin are still very small compared to their possible size. Therefore, relatively smaller events, transactions or business activities can significantly affect its price. In theory, this volatility will decrease as Bitcoin's market and technology mature. The world has never seen an emerging currency before, so it's really difficult (and exciting) to imagine how it will
progress.
Bitcoin software is still in beta version, and many unfinished features are in the active development stage. New tools, features, and services are being developed to make Bitcoin more secure and accessible to the wider public. Some of these features are not currently available to every user. Most Bitcoin businesses are new and do not yet offer insurance. Generally speaking, Bitcoin is still in the process of maturing.
Chinese name: Bitcoin
English abbreviation: BTC
Developer: Sa to shi Nakam oto
Core Algorithm: SHA-256
Release date: 2009/01/03
Total amount: 21 million
Block time: about 600 seconds/block
Consensus proof: POW
Block reward: Current 6.25 BTC/block (210,000 blocks produced/halved approximately every four years, the last halving time
: May 12, 2020)
2. Ethereum (Ethereum, referred to as ETH)
is an open source public blockchain platform with smart contract functions, which is provided through its dedicated cryptocurrency Ethereum (Ether, referred to as "ETH"). The centralized Ethereum Virtual Machine handles peer-to-peer contracts. Bitcoin pioneered the decentralized cryptocurrency and has fully tested the feasibility and security of blockchain technology for more than five years. The Bitcoin blockchain is actually a distributed database. If you add a symbol - Bitcoin, and stipulate a set of protocols, this symbol can be safely transferred on the database without trusting a third party. , the combination of these characteristics perfectly constructs a currency transmission system-the Bitcoin network.However, Bitcoin is not perfect. The scalability of the protocol is a shortcoming. For example, there is only one symbol in the Bitcoin network - Bitcoin. Users cannot customize other symbols. These symbols can represent the company's stocks. , or debt certificates, etc., which loses some functions. In addition, the Bitcoin protocol uses a stack-based scripting language. Although this language has a certain degree of flexibility, allowing functions such as multi-signatures to be implemented, it is not sufficient to build more advanced applications, such as decentralized exchanges. wait. Ethereum is designed to solve the problem of insufficient scalability of Bitcoin.
It is the next generation of cryptographic ledger that can support numerous advanced functions, including user issuance of currency, smart contracts, decentralized transactions and the establishment of decentralized autonomous organizations (DAOs) or decentralized autonomous companies. (DACs). Ethereum does not specifically support every single type of function as a feature. Instead, Ethereum includes a built-in Turing-complete scripting language that allows you to write for the features you want to implement through a mechanism called a "contract." generation. A contract is like an automated agent. Whenever it receives a transaction, the contract will run a specific piece of code. This code can modify the data storage inside the contract or send the transaction. Advanced contracts can even modify their own code.
In layman’s terms, Ethereum is an open source platform digital currency and blockchain platform. It provides developers with a platform to build and publish applications on the blockchain. Ethereum can be used to program, decentralize, secure and trade anything from voting, domain names, financial transactions, crowdfunding, corporate governance, contracts and most agreements, intellectual property, and smart assets thanks to hardware integration.
On February 28, 2017, a group of global companies representing the oil and gas industry, financial industry and software development companies officially committed to developing Ethereum into an enterprise-level blockchain. The Enterprise Ethereum Alliance was established by more than 20 of the world's top financial institutions and technology companies, including JPMorgan Chase, Chicago Exchange Group, Bank of New York Mellon, Thomson Reuters, Microsoft, Intel, and Accenture. The cryptocurrency ETH spawned by Ethereum has become the most popular asset after Bitcoin.
Detailed parameters
Chinese name: Ethereum
English name: Ethereum
English abbreviation: ETH
Developer: Vitalik Buterin
Core algorithm: Ethash
Release date: 2015/3/20
Block time: about 15 seconds/block
Block reward: 5 coins
Total Quantity: 25% of 72 million, approximately 18 million pieces/ Year
Main features: including digital currency and smart contracts and other special functions
3. USDT (Tether)
USDT is a stable value-based currency launched by Tether Currency United States Dollar (USD) Token Tether USD (hereinafter referred to as USDT
) is one of the stable currencies in the currency circle. 1USDT=1 US dollar. Users can use USDT and USD for 1:1 exchange at any time. Tether strictly adheres to the 1:1 reserve guarantee, that is, for every USDT token issued, its bank account will have 1 US dollar of funds guaranteed. Users can conduct fund inquiries on the ether platform to ensure transparency. Users can wire USD via SWIFT to a bank account provided by Tether, or exchange for USDT through an exchange. When redeeming USD, just do the reverse operation. Users can also exchange Bitcoin for USDT on the exchange.
USDT is a digital asset based on the Omni Layer protocol released on the Bitcoin blockchain. The biggest feature is that it is equivalent to the same amount of US dollars.
USDT is designed to be a replica of fiat currency on the digital network, making it a good value-preserving token in the volatile cryptocurrency market.
Intuitive features: USDT is equivalent to the US dollar, 1 USDT = 1 US dollar. Each currency = how much USDT, which is equivalent to how many US dollars its unit price is.
Stable: Because Tether is backed by legal currency, users can still trade in the blockchain asset market without being affected by the price fluctuations of most blockchain assets.
Transparency: Tether, the issuing company of Tether, claims that its legal currency storage account has regular audits to ensure that every Tether currency in circulation is backed by a corresponding US dollar. Storage account status is public and can be queried at any time. In addition, all Tether transaction records will be published on the public chain.
Small transaction fees: There are no fees for transactions between Tether accounts or transactions between Tether coins stored in them. A transaction service fee is required when converting Tether to legal currency
4. Litecoin (LTC for short)
was born on November 9, 2011, and is known as It is "digital silver". Litecoin technically has the same implementation principles as Bitcoin. It is the first network digital currency based on the Scrypt algorithm. Compared with Bitcoin, Litecoin has faster transaction confirmation time, higher network transaction capacity and efficiency. Litecoin now has a complete industrial chain and sufficient liquidity, which is enough to prove that it is a mature, safe and stable commercial financial system.
Data Blockchain
The Litecoin blockchain is capable of handling larger transaction volumes compared to its competitor, Bitcoin. Since data blocks are produced more frequently, the network can support more transactions without requiring software modifications in the future. As a result, merchants can get faster transaction confirmations and still be able to wait for more transaction confirmations when selling large-ticket items.
Mining Rewards
"Miners" can currently produce 25 Litecoins per data block. Every 4 years, the amount of Litecoin currency produced will be cut in half (
every 840,000 blocks). Therefore, the total amount of currency produced by the Litecoin network will be 4 times that of Bitcoin, or 84 million Litecoins. The creation and transfer of Litecoin is based on an open-source cryptographic protocol that is not governed by any central authority. Litecoin aims to change Bitcoin. Compared with it, Litecoin has three significant differences:
(1) The Litecoin network can process one block every 2.5 minutes (instead of 10 minutes), thus providing faster transaction confirmations.
(2) The Litecoin network is expected to produce 84 million coins, which is four times the amount of currency issued by the Bitcoin network.
(3) Litecoin uses the scrypt encryption algorithm first proposed by Colin Percival in its proof-of-work algorithm. In April 2017, the Litecoin community reached an agreement through voting and decided to upgrade its blockchain through a Segregated Verification soft fork. In June of the same year, the Litecoin Lightning Network was officially launched.
Detailed parameters
Chinese name: Litecoin
English name: Litecoin
English abbreviation: LTC
Developer: Charlie Lee
Core algorithm: Scrypt
Release date ：2011/10 /7 Block time: 150 seconds / Total block issuance: 84 million
Halving time: 4 years
Consensus proof: POW
Difficulty adjustment: 2016 blocks
Block reward: initially 50 LT C, current 12.5 LTC
Main features
Large issuance volume: 4 times the issuance of Bitcoin;
Fast transaction: confirmation time is only 2.5 minutes; Segwit verification activation
Shortcomings : There are still few Litecoin-related applications
Risk: After Segment Witness is activated, the risk of network vulnerabilities
5. EOS Coin (referred to as EOS)
EOS (Enterprise Operation System) is a new blockchain-based energy contract platform developed by Block.one, aiming to provide underlying blockchain platform services for high-performance distributed applications. The goal of the EOS project is to implement an operating system-like blockchain architecture that supports distributed applications. This architecture can provide accounts, identity authentication, data, asynchronous communication, and program scheduling and parallel computing on tens of thousands of CPU/GPU clusters. EOS can eventually support the execution of millions of transactions per second, while ordinary users do not need to pay usage fees to execute smart contracts.
Function of EOS
EOS token is currently an Ethereum-based token released by the EOS blockchain infrastructure. It has three main application scenarios: bandwidth and log storage (hard disk), calculation and calculation reserve (CPU), state storage (RAM). After the EOS mainnet is launched, the ERC20 token EOS will be converted into tokens on its main chain.
Specifically, it can be explained as: (1) Receiver payment: Customers purchase specific products from the business, and the sales revenue of these products will be used to pay for the business costs, avoiding customers to pay directly for using the blockchain, nor Will restrict or prevent companies from determining the monetization strategy of their products.
(2) Authorization ability: If a blockchain is developed based on the EOS software system, and its tokens are held by a token holder, He may not need to consume all or part of the available bandwidth immediately, and such token holders may choose to give or rent the unconsumed bandwidth to others.
(3) Separate transaction costs from token value: If the application owner holds a corresponding number of tokens, the application can continue to run with a fixed state and bandwidth usage. Developers and users will not be affected by token market price fluctuations
and therefore will not be price dependent.
(4) Block reward: Every time a block is generated, EOS will reward the block producer with new tokens to pay for its operation and maintenance
costs. The current EOS setting limits the upper limit of rewards for block producers. The current upper limit of rewards given to block producers by EOS is a maximum of 5% per year, that is, the total annual increase in the new supply of tokens does not exceed 5%.
The main features of EOS are as follows:
1. EOS is somewhat similar to Microsoft’s windows platform. By creating a developer-friendly blockchain underlying platform, it supports multiple applications running at the same time. Provides underlying templates for developing dAPPs.
2. EOS solves the problems of latency and data throughput through parallel chains and DPOS. EOS can handle thousands of transactions per second, while Bitcoin has about 7 transactions per second, and Ethereum has 30-40 transactions per second;
3. EOS has no handling fees and has a wider general audience. To develop dApps on EOS, the network and computing resources required are allocated according to the proportion of EOS owned by the developer. When you own EOS, it is equivalent to owning computer resources. With the development of DAPP, you can lease the EOS in your hand to others. From this point alone, EOS also has extensive value. To put it simply, owning EOS is equivalent to owning a house to rent to others to collect rent, or owning a piece of land to rent to others to build a house.
6. Dash (DASH)
Dash is an open source peer-to-peer (P2P) cryptocurrency that can provide instant transactions, anonymous transactions and Alternative currency functionality. The Dash network is secured by proof-of-work mining (the consensus mechanism used by Bitcoin) and uses the X11 algorithm, which is based on 11 different hash functions. Its masternodes are a proof-of-service layer that act as both transaction mixers and boosters, as well as the voting mechanism for the Dash governance system. Dash block rewards are divided between two layers (miners and masternodes). Among them, miners receive 45% of the return, the masternode receives 45%
, and the remaining 10% is allocated to the decentralized Dash budget system. The generation time of each block is 2.5 minutes, and one block gives Miners are rewarded 3.6 Dash.
The details are as follows:
Background
Considering the anonymity and transaction processing speed of Bitcoin, Evan Duffield and his team started the research and development of DASH and officially founded Dash in January 2014
.
At this point, Dash has completed relevant improvements based on Bitcoin, improving the anonymity of transactions by obfuscating transactions with the decentralized network server "master node". At the same time, based on nodes, the transaction processing speed is improved, thus giving birth to Dash which is decentralized and has good anonymity.
Features
High anonymity:
In Bitcoin transactions, all transaction data will be recorded in the data block chain, and the whereabouts of Bitcoin can be seen, so that the receiving and sending parties can be queried. However, Dash uses anonymous sending technology to obfuscate transactions with decentralized network server "master nodes", making transactions unable to be tracked and queried, thereby achieving high anonymity. Instant sending: While the Bitcoin network takes 10
minutes or even hours to confirm transactions, Dash can send instantly.
DASH announced that it has cooperated with blockchain payment provider Alt Thirty Six, and Alt Thirty Six is a supplier of cannabis payment processors. This means that DASH can be used as payment transaction consideration, in many unavailable situations. Advantages in speech transactions.
Autonomous management system:
Through this system, the Dash network can allocate resources for R&D and marketing through proposals and voting, and any user can create and submit proposals on the network.
7. Ripple (XRP)
Ripple (Ripple/XRP) provides an unhindered global payment network using blockchain technology and is the world’s The first open payment network. By joining Ripple's growing global payment network, you can transfer any currency, including US dollars, euros, RMB, Japanese yen or Bitcoin. It is simple, easy and fast, and transaction confirmation is completed within a few seconds. Transaction costs are almost zero, and there are no so-called inter-bank, long-distance and cross-border payment fees.
Ripple is an open source peer-to-peer payment network that allows any institution or individual to easily, cheaply and securely transfer money to any institution or individual on the Internet, no matter where in the world. Ripple is a p2p software that is not controlled by any individual, company, or government. Anyone can create a ripple account. Since May 2017, Ripple’s validator network has expanded by 140% to 55 participants, including WorldLink, Telindus-Proximus Group, Microsoft, MIT, CGI, Swedish ISP, Bahnhof, and Data Center and System Integration Service provider AT TOKYO
etc. All of these participants are now maintaining the integrity of the XRP ledger (formerly the Ripple consensus ledger) and running software to help them agree on trade settlement orders.
Features
Ripple is the only universal currency in the ripple system. It is different from other currencies in the ripple system. Other currencies such as USD cannot be withdrawn across gateways. In other words, those issued by gateway A can only be withdrawn at gateway A. For gateway withdrawals, if you want to withdraw cash at B
gateway, you must convert it to B gateway through the pending order function of the ripple system before you can withdraw money at B gateway. Ripple has no such restrictions at all and is universal within the Ripple system.
Detailed parameters
Chinese name: Ripple
English name: Ripple
English abbreviation: XRP
Developer: Ripple Labs
Core algorithm: OpenCoin
Original algorithm Release date: 2011-04-18
Block time: seconds
Block reward: Total currency amount 100 billion
Circulation volume: 43.685 billion (deadline: 2020.8.12)
Main features : Invested by Google, the decentralized trading function has been implemented, and the practical application prospects are good
Shortcomings: The technology needs to be improved, and XRP distribution needs to be planned
8. Ethereum Classic Abbreviation: ETC)
ETC is a forked currency that was hard forked by Ethereum after 1,920,000 blocks. Its functions are very similar to Ethereum. ETC
adheres to the concept of decentralization and supports the consensus mechanism guaranteed by the blockchain. ETC firmly believes that once the blockchain starts running, its development direction will not be influenced by any central team, but will be determined by the consensus of the people participating in the entire network and the consensus of the entire network's computing power.
The Ethereum blockchain hard fork in July 2016 was designed to transfer The DAO funds stolen by hackers to an account controlled by investors, and to allow old transaction records to be forgotten by history. Most Ethereum developers participated in the reversal, as did exchanges, startups, and other members of the ecosystem. After a few days, the project returned to normal. But not everyone wants to forget about old transactions.
So a small number of miners continued to use the original blockchain as a form of protest. They described the hard fork as a drain on The DAO, an abandoned project. So Ethereum Classic (ETC) was born.
Detailed parameters
Chinese name: Ethereum Classic
English name: Ethereum Classic
English abbreviation: ETC
Developer: Ethereum Classic Team
Core Algorithm: Ethash
Consensus Proof: POW
Release Date: 2016/7/20
Block Time: About 15-17 Second/block
Total currency amount: fixed at 210 million, with a maximum of no more than 230 million, decelerating by 20% every 5 million blocks, and the first production reduction will be in December 2017
The above is the detailed content of Detailed explanation of the entire network—several mainstream currencies in the digital currency circle. For more information, please follow other related articles on the PHP Chinese website!
![[Web front-end] Node.js quick start](https://img.php.cn/upload/course/000/000/067/662b5d34ba7c0227.png)
