The idea of altcoins initiated with the success of bitcoin in the market. After that, cryptocurrency fought all the way with other established monetary systems so it could catch everyone’s attention and exhibit its own value.
Bitcoin differs from other monetary systems because it will be exhausted one day. Not more than 21 million bitcoin will ever be mined. This is done particularity to protect its value from inflation and other factors that drops the value of the currency. Bitcoin has triggered the production of new cryptocurrencies. Surprisingly, the fate of other cryptocurrencies is opposed to the fate of bitcoin. Altcoins are generated so frequently that it is unlikely to expect depletion of cryptocurrency from this world in future.
Bitcoin aided other cryptocurrencies with its protocol that is an open source. Therefore, it provided ease to many people who were interested in developing cryptocurrencies. Their cryptocurrencies, like bitcoin, were found appealing to many people as well.
Ripple launched XRP as its native currency, capable of handling 1,500 transactions per second. The company has decided to create 100 billion ripples at max. The aim behind launching a cryptocurrency was clarified by David Schwartz, Ripple’s chief cryptographer. He said:
Payment systems today are where email was in the early ’80s. Every provider built their own system for their customers and if people used different systems they couldn’t easily interact with each other. Ripple is designed to connect different payment systems together.
Similarly, some other cryptocurrencies were launched after the launch of bitcoin. Zcash, Dash and Monero were among the ones that offered users with privacy and anonymity that lacked in bictoin’s environment.
Zcash, like bitcoin, has supply of 21 million units. The Zerocoin protocol was developed in to Zcash in 2016. Currently, Zcash is the 20th largest cryptocurrency with market cap of more than $700 million. Zcash introduced privacy in its ecosystem where it was necessary, unlike bitcoin. Peter Van Valkenburgh, member of Zcash foundation, explained his understanding on privacy necessary for human dignity and flourishing. He further added that Zcash handled privacy in a reasonable manner so that’s why he liked Zcash. He said:
I particularity like Zcash because not only because of its aspirations of being a privacy protecting cryptocurrency but also more nuanced things like selective disclosure like the idea we should have the ability to make proofs of of certain facts about our transaction while hiding other facts about our transactions….
Dash was launched as a fork of bitcoin that allows users to enjoy fast yet untraceable transactions. It ranks as 12th largest cryptocurrency with market cap of more than $1 billion. Dash tried to compete with Petro, a Venezuelan cryptocurrency. Petro was launched by Maduro government after observing Bolivar losing its value due to inflation.
Monero is running an open source cryptocurrency that uses a PoW mechanism to issue new coins and incentivize miners to secure the network and validate transactions. It is 11th largest cryptocurrency of the world with market cap of almost $2 billion.
Besides these cryptocurrencies, another cryptocurrency originated on the idea introduced by bitcoin. Ethereum by Vitalik Buterin was founded in 2015 and since then, it has been proving to be one the best known crypto platform. Where bitcoin only severs as a ledger, ethereum, a blockchain-based platform, features smart contracts and allows people to create their own cryptocurrency. CryptoKitties is one of the most popular ethereum based virtual game that proved the flexibility of ethereum’s platform.
At present, technology and facilities are convenient than ever they used to be. The easy access of protocols and tools required to develop a cryptocurrency have motivated people to great extents to develop solutions encompassing a cryptocurrency.