Three cryptocurrencies that will change the world
It is unquestionable that cryptocurrencies have come to transform the world, of course, that first step we owe to Satoshi Nakamoto, with the invention of Bitcoin. But it turns out that behind Bitcoin, there is a hidden technology that has begun to transform societies, we are talking about the Blockchain.
Now, when it comes to operating systems and databases (financial or not), the world is divided into two parts, with or without Blockchain. It is also a secret for anyone the struggle that is brewing between the fiat currency and the innovative proposal that has brought to the world the cryptocurrencies, certainly for some it seems ridiculous such comparison, especially if we take into account the market capitalization of each one of the segments. But if we look at it in detail, from a visionary perspective, from the point of view of the trends projected by the societies of our time. This trend towards globalization, the automation and optimization of processes, as well as the demand for greater transparency and freedom, because there is no doubt that the proposal that has been placed on the table by Satoshi Nakamoto fits with the projections that humanity brings.
In such a way that in the present we already have cryptocurrencies that are going to supply many of the needs that are outlined in all the societies of the world. We could say that as a founder, Bitcoin has already changed the world, it has already done its job, but the time is approaching when other cryptocurrencies take all evolution to the next level:
Ethereum: this cryptocurrency has been changing the world for a while, its conception is very different from that of Bitcoin, this is because it brought with it the vision not only to provide a decentralized cryptocurrency, but to expand the Blockchain all over the world, through what we know as the “smart contracts”, today there seems to be not a single industry that is not experimenting with the Blockchain. Everything started with the financial sector, banking and insurance, now this phenomenon has spread to all sectors of the global economy, and this is largely due to Ethereum, because although there are many providers, the idea was born from this platform and cryptocurrency.
Compared with all this cryptocurrencies, it is not doing too badly, we are talking about the second cryptocurrency with the highest market capitalization in the ranking of the most influential cryptocurrencies in the world. As if it were not enough the Ether has real characteristics of replacing the fiat currency, and this is mainly because it is an unlimited and inflationary currency, an important feature if it is to cover the entire global market, although there are still issues of scalability to solve.
Ripple / Stellar: the masses of human beings are the ones who decide the direction to follow, and what would happen if within this war fiat vs crypto the majority decides to be pragmatic, that is to say, bets for a global interconnection between all the currencies of the world (centralized and decentralized), according to specialists this could be the most viable option, because the human being in the long run tends to be pragmatic , that is, what works and already does. This behavior would fit perfectly with the proposals of Ripple and Stellar.
At this point we must make clear Ripple is led by a private for-profit company, believe it or not for some people this conveys greater confidence than decentralized cryptocurrencies. An example of this we can find with PayPal, that despite being a private company has a large number of users, that is, there is a group of people who prefer to see the face of the bank where they deposit their money, for them Ripple is or would be a perfect proposal.
But for libertarians, those who fight for human rights, to find a platform and cryptocurrency with these same characteristics of Ripple, there is no doubt that your best option is Stellar, since it is a decentralized cryptocurrency directed by a nonprofit foundation. Both Stellar and Ripple bet on compatibility and global convertibility between currencies, if we think about it well it is like peace, the unification of criteria between different types of currencies. That a transaction can be made from fiat to crypto (or vice versa) using as a vehicle a XRP or a XLM in less than 5 seconds is truly amazing.
They say that comparing is bad, but sometimes we are tempted to do so, according to Ripple’s web portal “While traditional bank transfers are about 3–5 days to complete, a BTC operation takes an hour or more to complete, an ETH operation takes 2 or more minutes, but with XRP an operation is completed in 4 seconds”.
In addition, the number of transactions per second that can be made with Ripple is comparatively much higher than the two referents in this segment: Bitcoin offers between 3 and 6 transactions per second, while ETH offers about 15 transactions per second. XRP offers 1,500 transactions per second, and according to its creators can scale to reach 50,000 transactions, which for example, are processed with the Visa protocol, a real way to compete with the fiat currency. All these data apply in a very similar way with Stellar, since Stellar, a decentralized crypto and with more social and humanitarian purposes, is born from Ripple through a bifurcation, therefore, its protocol and scalability is very similar.
IOTA: the reason why this cryptocurrency is present in this list is because it emanates a lot of innovations, which could embody the future of the future, in the same line it stands out for its visionary scalability, so much that it seems to come from a planet more advanced.
Scientists and technologists have been predicting for some time the phenomenon of the Internet of Things, something that is already happening, with applications, artifacts and prototypes. It is in this area, where artifacts (robots and apps) begin to communicate and interact with human beings, more or less similar to the intelligent contracts of Ethereum, NEO and NEM, to name a few, only in this case IOTA, it is being taken more seriously, to the point that it is not just about automated contracts and consensuses artifacts-man, it includes the global interconnection between robots and applications, it is in this field where IOTA aims to perform and offer its financial services, payments (with conditions) that need to be specified either artifact-man and above all robot-robots.
Scalability of IOTA:
For starters, IOTA is committed to a technology called Tangle, which is essentially a software protocol that differs fundamentally from the Blockchain protocol. The brilliance of Tangle is that transactions are processed in parallel. The Tangle differs from the block chain mainly in three ways:
1. IOTA is able to achieve a high performance of transactions by parallelizing the validation. As the Tangle grows with more transactions, IOTA becomes faster and more secure with the completion of the transaction happening more quickly as the critical mass of the network is addressed.
2. The way in which consensus is achieved in a chain of blocks is through a rigorous mechanism that requires multiple parties to “compete” with each other in an attempt to add the next block and win the reward of that block. Since the “miners” and the “users” are decoupled entities, the block rewards paid to the miners will be formed mostly by the users’ transaction fees. In the Tangle, “miners” and “users” are no longer dissociated entities.
For a transaction to be confirmed in a chain of blocks, a certain arbitrary time interval must elapse for the creation of the blocks. The Tangle allows asynchronous payments, so there are no extrinsic arbitrary temporary restrictions at the end of the transaction.
The Tangle is programmed in ternary which is a deviation from the traditional binary code. The Ternary is much more efficient than the binary and provides some significant improvements in functionality. The Tangle can be executed in binary or ternary systems.
3. You are probably used to hearing about the scalability problems of the world’s main cryptos, and the long confirmation times due to a growing user base. The opposite will happen in IOTA. In fact, confirmation times will take longer when the network is very small, while they will approach zero as the user base grows in size. Following this line, as the number of transactions in IOTA increases, the capacity of the Tangle to handle even more transactions increases. This is a new concept that will take a little getting used to. It is important to understand the concept that Tangle does not function optimally until critical mass adoption.
But this does not end here, before dismissing the segment belonging to IOTA we must name other qualities: zero commissions, fixed money supply, resistant to quantum computing, immutable account book, secure, decentralized and private data transfer, saving money because they do not lack mining equipment and much less mining farms, as well as expenses for energy costs, this brings as a consequence a technology friendly to the environment, we can not forget the number of IOTA transactions per second that is around 500, well above Bitcoin (7), Ethereum (20), Dash (28) or Litecoin (56), just to name a few.
That is, IOTA as a proposal seems to come to solve many of the problems we currently have in the world of cryptocurrencies and Blockchain technology and if we add the focus on the Internet of Things, hiring and payments between men -robots, or robots-robots make it a promising cryptocurrency to transform the world.
In this article we share the vision of three of the most promising cryptocurrencies in the world (like it or not), because in the end the decision of what will happen is not in the hand of an individual, but of what instinct the masses of human beings decide in the very near future.
Give us your opinion, what cryptocurrency do you think will change the world? and why?
By Marcelo Durán / Bitdharma
