Cryptocurrency : Part 1-1 - Basics : The Coin Specifications

in #cryptocurrency4 years ago (edited)

Hello steemians as a part of I promise in Cryptocurrency Basics this will be a continuation.

Every Cryptocurrency has it own specifications and development process.
Specification differs from how their blockchain was built and putting smart contracts for tokens like ethereum and waves. Specification includes its name, ticker, algorithm, coin supply, number of blocks, block time, etc.

There are 39 known algorithms use for cryptographic function and three of the most popular are SHA-256 for Bitcoin, Scrypt for Litecoin and Ethash (Dagger-Hashimoto) for Ethereum.

Recently I've researched that cryptocurrency ecosystem goes into these three categories. These are:

  1. Cryptocurrency Coins: Coins that are used as a transfer of value or a medium of exchanges, with the main purpose of being money; some examples are Bitcoin, Litecoin, Dash, Digital Money Bits and Monero.

  2. Protocol-Level Coins: Coins that have their own custom blockchain; some examples are Ethereum, NEO, Waves, and Qtum.

  3. Tokens: Decentralised Applications (dApps) built on top of a blockchain protocol like Ethereum protocol, usually issuing their own tokens through Initial Coin Offerings (ICOs): We will tackle this next time after the basics. Some example are Ethereum token like EOS , TRON , etc. See list of tokens available in the market at coinmarketcap

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Sources: Coinmarketcap, Cryptodabase, Mastercrypto, hackadaycom

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