Overview of digital cryptocurrencies


Digital currencies also include cryptocurrencies that appeared in 2009, and the first among them was Bitcoin.  The creation and verification of each new unit of currency is based on some cryptographic methods.

The principles of creating a coin of each of the cryptocurrencies are similar and meet the requirements of “Proof-of-work”. The computer has done some work that it can prove to others, so it gets rewarded.

All cryptocurrencies are based on complex calculations of some function, which is easy to check by reverse mathematical operations, for example, the calculation of large prime numbers, the calculation of complex hashes under certain conditions.

All work on the creation and verification of currency takes place on personal computers, without the use of a central server. Decentralization of coin emission makes all network participants anonymous.

For these tasks, special programs have been created – “miners”, which are engaged in the calculation of data blocks. Since the system is decentralized, after each calculation of a certain block of data, the miner sends the results to all other clients of the network, who check it and take it into account in their calculations, creating the so-called block chains. This allows all clients to compute unique values. In addition, all transactions that occurred in the system during the calculation period are recorded in the block.

The transaction includes information about which wallet to which the amount is transferred, its size, as well as the timestamp of the operation. This entry is marked with the encrypted key of the sending host and sent to all other hosts in the network for confirmation. Due to the decentralization of the system, transactions do not go through any specific servers, so they are very difficult to trace.

Bitcoin is the founder and leader among all cryptocurrencies, it is called “electronic gold”. The Bitcoin exchange rate is very fluctuating and as of September 26, 2021 is $43,335 per Bitcoin. There is a limit on the issue of coins of 21 million.

The generation of new coins by a network node occurs by solving complex, similar mathematical problems (calculating SHA-256 hashes), at a time when it can demonstrate evidence of the work done.

He tried to base his currency on the correspondence of its price on the cryptocurrency exchange to the market prices of silver. At the same time, Bitcoin corresponds to the market prices of gold.  The current Lite coin rate is $151.80 (as of September 2021). Limiting the issue of coins – 84 million.

Lite coin uses the crypt cryptographic function and more “friendly” mining options. Therefore, transactions in this system are completed 4 times faster compared to Bitcoin. In addition, due to changes in mining methods in this system

Prime coin is a modified copy of Bitcoin. It was launched without prior block generation on July 7, 2013. The system calculates prime numbers, including Cunningham sequences. The current rate of Prime coin is $0.101.

In addition, there are large monetary awards for those who have found prime numbers greater than 1 million, 10 million, 100 million and 1 billion decimal places (EFF Cooperative Computing Awards).

The Peroni system, created in August 2012, ranks third in popularity among cryptocurrencies. The current price of Percoid is $0.6943.

To popularize their currency, as well as to attract users to buy Percoids, they came up with a motivation that distinguishes this currency from others.

The fork of Bitcoin, which is a system of alternative DNS servers, was created in April 2011. The current Name coin rate is $1.31. It has a coin issue limit of 21 million coins.

In Name coin, as in other bitcoin-like cryptocurrencies, there is no central server and there is no one managing organization. Each of the nodes of the Name coin network owns a complete copy of the entire database. The purpose of creating this system was to implement internal payments, as well as the implementation of a distributed system of domain names (names of Internet sites), which makes it a little more complicated than other cryptocurrencies.

The existing DNS system, which replaces the text addresses of Internet sites with special system, numerical ones, belongs to the international organization ICANN. This organization has the right to confiscate the site’s domain name, which is very unprofitable for the owners of pirated resources, for whom Name coin is a good alternative.

Name coin currency is specially used to pay for registration, renewal of domain addresses in the .bit zone. These domains are not subject to ICANN. Cryptographic protection makes them almost completely secure from everyone except the owners of the domain name themselves.