Bitcoin vs. Ethereum vs. Litecoin vs. Dagcoin – Times Square Chronicles

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Bitcoin vs. Ethereum vs. Litecoin vs. Dagcoin

Bitcoin 

Bitcoin is the first cryptocurrency to be created, and it came about following the global economic crash of 2008. The brain behind the project, Satoshi Nakamoto designed the cryptocurrency to take power away from the traditional financial systems and hand it over to the people.

The cryptocurrency was designed with decentralization in mind. Transactions carried out on the blockchain are approved by miners, who are also tasked with mining new coins. Bitcoin is solely a digital currency, with no physical money. 

As the first cryptocurrency, Bitcoin has maintained its lead in the crypto space, serving as the benchmark for the industry and other cryptocurrencies. It currently has over 50 percent market dominance, implying that the more considerable trade carried out in the industry is via Bitcoin. The blockchain, which is the technology behind Bitcoin and some other cryptocurrencies is highly sought after. While regulators and some financial institutions might not be sold on the idea of Bitcoin, it is no doubt that its creation is one of the most important inventions of modern times. Bitcoin has opened up a new industry and has changed the face of global finance.

Bitcoin features

  1. Bitcoin transactions are irreversible
  2. The transactions are carried out with pseudonyms 
  3. It is global. Transactions can be made to every part of the globe.
  4. It has a secure network
  5. The network is permissionless
  6. Coins are created via mining
  7. It makes use of the proof-of-work (PoW) protocol
  8. Has a total supply of 21 million coins 

Ethereum

Ethereum is the second largest cryptocurrency, and it was one of the first created which shows that the blockchain technology is useful beyond just financial transactions. The Ethereum blockchain is a smart contract and dApp network that hosts other tokens, decentralized applications, and smart contracts.

Despite the current competition it faces, Ethereum is still regarded as the largest and most well-established, open-ended decentralized software platform that hosts dApps and smart contracts. Ethereum transcends a platform. It is a programming language running on a blockchain. It allows project developers to create and publish their decentralized applications. 

The native token of this blockchain is the Ether (ETH). Ether is used as the primary cryptocurrency for transactions carried out on the Ethereum blockchain.

Ethereum features 

  1. It makes use of the PoW protocol.
  2. The blockchain hosts smart contracts and dApps.
  3. Tokens can be launched on the network called ERC20 and ERC721.
  4. The blockchain is immutable
  5. The network is secured using cryptography.
  6. 6.     Has a total supply of over 100 million coins. 

Litecoin

Litecoin is popularly regarded as the Bitcoin sister due to the fact that it has similar features as the leading cryptocurrency. It was the first crypto created after Bitcoin, with the significant exception being the number of coins each has. While Satoshi made it that only 21 million Bitcoins would ever be in existence, the total number of Litecoin is much higher than that, 84 million coins.

Charlie Lee, the creator of Litecoin, was a former Google employee that believed that a cryptocurrency is needed that would solve some of the problems with Bitcoin. While Bitcoin is regarded as the digital gold, Litecoin earned the title of silver due to its ability to make transactions cheaper.

While Litecoin also makes use of the proof of work protocol, it has some differences with Bitcoin. For example, the transaction time on Bitcoin is lower than that of Litecoin, making LTC a better alternative for merchants uses. The hashing algorithm that each uses to solve a block is another major feature that separates Litecoin from Bitcoin. 

Bitcoin makes use of SHA-256 (short for Secure Hash Algorithm 2) which is seen to be relatively more complex.  Litecoin, on the other hand, utilizes a memory-intensive algorithm known as Scrypt.

Litecoin features

  • It is immune to flood attack
  • Transactions on this blockchain are cheap
  • It makes use of the PoW consensus mechanism
  • It has a total supply of 84 million coins.
  • Transactions are irreversible and faster compared to Bitcoin. 

Dagcoin

While most cryptocurrencies are currently being used as a store of value or for trading, Dagcoin is designed to be used precisely as a currency. Cryptocurrencies should be a step up from the regular fiat currencies, and Dagcoin is one of the cryptos currently focusing on that.

The cryptocurrencies are developed and continuously upgraded to improve transaction speed, reduce the cost of transactions, grant access to more people all over the globe and increase the level of freedom experienced while carrying out financial operations.

Dagcoin is one of the cryptocurrencies that have government licenses for crypto and is strictly following KYC and AML laws. This is to help reduce illegal or criminal transactions in the financial world. As a result of that, Dagcoin has created a more secure environment for financial transactions to take place.

As a currency that is focused on usage over trading, Dagcoin is building towards a future where the coins can be used to purchase goods and services all over the world. With a community of nearly 200 000 members, Dagcoin is committed to building a group of educated long-term cryptocurrency supporters who believe in the real value of cryptocurrencies. The cryptocurrency would be used as a currency, not for speculation like the others. 

Dagcoin features

  1. Dagcoin and its platform are both open sources.
  2. It has a total supply of 9 billion coins.
  3. It is KYC and AML compliant.
  4. It is solely created to serve as a currency.
  5. The technology behind it is DAG-chain
  6. The transaction fee is minimal compared to the others.
  7. Dagcoin has a fast transaction time.

Conclusion

The four cryptocurrencies explained above are different, with the exception of Bitcoin and Litecoin that have similar features. However, the function that they carry out in the cryptocurrency space are different, so also their features. 

Bitcoin continues to be the leading cryptocurrency while Ethereum is an authority in the smart contract and dApp sector. Dagcoin meanwhile is steadily building an active community that believes in the use of cryptocurrencies as currencies, rather than as speculative tools.