In 2009, Bitcoin made a real revolution in the economic environment, because it was the first cryptocurrency that would allow users to perform transactions in any direction. But the time goes by and it turned out that the BTC is not as ideal as it seemed initially. Slow transactions, poor scalability, large fees, etc. – all this pushed users to find a replacement. In this article, the cryptomarket experts of ICO Pulse will figure out whether there is an alternative to Bitcoin. And if so, who can claim its place?
Alternative to Bitcoin: actual problems
Today, when there is a huge number of different cryptocurrencies, Bitcoin no longer looks as attractive as it was in 2009. Of course, its market share still remains the largest. But from a technical point of view, it is already somewhat behind some of the young projects.
The following are his shortcomings:
- Low bandwidth. The Bitcoin network is capable of performing only 7 transactions per second, which is clearly not enough in the modern world.
- Low programmability. Bitcoin blockchain can not be reprogrammed to perform any other operations except transactions, for example, the execution of smart-contracts.
- Absence of complete anonymity. Despite the fact that signing message with Bitcoin-address do not directly point to a specific person, there are ways to establish the identity behind the account.
Thus, based on these shortcomings, ICO Pulse offers you to familiarize yourself with the crypto-currencies that bypassed Bitcoin by any of these parameters and can be used as an alternative to the first cryptocurrency.
Ethereum.org is considered the second most important project after Bitcoin and is its direct competitor what makes it one of the best cryptocurrency to invest. In terms of the number of transactions per second, ETH has not far gone from BTC. At the moment the network capacity is about 20 operations per second. But, as Vitalik Buterin says, thanks to future updates of the protocol, the speed can increase by thousands of times.
The Ethereum platform, as an alternative to Bitcoin, significantly exceeds its programmability. It became the pioneer of smart-contracts in the cryptocurrency industry. Using ETH and platform capabilities, users can create their own blockchain applications, run smart contracts and issue tokens.
Stellar Lumens (XLM)
The Stellar Lumens platform (stellar.org) with Lumen cryptocurrency, created in 2014, is an updated version of Ripple, in which the developers managed to achieve 100% decentralization. The main feature of this coin is that it allows you to carry out up to 1 thousand transactions per second. This figure is almost 150 times higher than that of Bitcoin.
In addition, a protocol called Stellar, on which the platform and coin Lumen is built, is capable of conducting transactions with minimal fees. So, the developers claim that they could transfer millions of pounds with a commission of several pennies.
Nano (nano.org) is a cryptocurrency, which is known to many as RaiBlocks. Initially, the cryptocurrency was issued in 2014, and in late January 2018 it was renamed into Nano. The main feature of this coin is that it uses the lattice structure of the blockchain, when each account has its own chain. This allows you to significantly increase the network bandwidth and make it more scalable.
To date, Nano is the fastest crypto currency, carrying out up to 7 thousand transactions per second. In addition, the network boasts a low fee for operations.
EOS (eos.io) is a cryptocurrency that bypasses Bitcoin on two important parameters at once:
- Programmability. The EOS blockchain architecture is fully programmable, which allows users to use it to create decentralized applications, as well as launching smart-contracts.
- Scalability. EOS blockchain has very high scalability. In the future, the network will be able to handle up to 1 million transactions per second.
The people Have already been dubbed EOS as “the Ethereum killer”, so it is also an alternative to Bitcoin.
BitcoinCash (bitcoincash.org), which is the fork of the original Bitcoin network, has outperformed its “ancestor” in some technical aspects. Its main difference from BTC is that the developers have increased the block size in the chain from 1 MB to 8 MB. This allowed to increase the network capacity (to over 60 transactions per second), and accordingly – to reduce the queue for verification.
Monero.org has succeeded in surpassing Bitcoin in its anonymity, so many predict a bright future for the coin.
It is noteworthy that to ensure the anonymity of users in XMR 3 technologies are used at once:
- Hidden addresses.
- Ring signatures of transactions.
- Ring protected transactions.
In addition, Monero uses a dynamic block size, which contributes to the growth of network bandwidth over time.
The best alternative to Bitcoin
Most likely, there are many people who will be ready to defend the uniqueness of Bitcoin. Of course, today it has the largest market share, which makes it a profitable asset for investment and trading, but technically it lags behind many younger cryptocurrencies.
The biggest problem is that Bitcoin has stopped in its development, when other coins continue to improve. Probably, a more progressive alternative to Bitcoin, which will displace it from the position of the leader both in price and in terms of capitalization will be found soon. ICO Pulse will keep fingers on the pulse of cryptotechnology and you are among the first to learn about the new alternatives to bitcoin.