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Types and features of cryptocurrencies Bitcoin | Altcoins | Tokens

22.10.2021
Types and features of cryptocurrencies  Bitcoin | Altcoins | Tokens

Cryptocurrency: types and their features

Bitcoin was launched in 2008; it was a time when mention was first made of cryptocurrency.
As everyone knows, bitcoin is the first digital currency with which the whole history of cryptocurrency development began. Despite the fact that digital currency has existed for a long time, it began to acquire its popularity only in 2017-2018, when bitcoin grew very much.

What is Cryptocurrency?

Cryptocurrency is a digital currency that doesn’t exist in the material world. Its main advantage is all payments and transactions in cryptocurrency are the most secure since they cannot be tracked, and transfers are reliably protected and cannot be verified. Today there are a huge number of cryptocurrencies, among them are considered the most popular: Bitcoin, Litecoin, Ether, Bitcoin Cash, Ripple, and DBX tokens.

Features of cryptocurrency

  • Cryptocurrencies are not affected by inflation.
  • Anonymity.
  • Decentralized cryptocurrency.
  • Impossible to cancel the transfer.
  • Safety.

Types of cryptocurrencies

1. Bitcoin (BTC).

As we mentioned earlier, this cryptocurrency first appeared on the market. Satoshi Nakamoto is considered its founder. However, it is still unknown whether this person is real or uses a pseudonym. There is also a version that a group of people created bitcoin under this pseudonym.

2. Altcoins.

Altcoins appeared after bitcoin was successfully launched. These are coins that were created as an alternative to bitcoin; hence they are also called “alternative coins.”

Some types of alternative coins:

⦁ Litecoin (LTC)

⦁ Ethereum (ETH)

⦁ Ripple (XRP)

3. Tokens.

Tokens are analogous to shares on the stock exchange. This currency does not have its own blockchain, so it cannot exist on its own like altcoin and bitcoin. Tokens are installed on the blockchain of other cryptocurrencies, such as Ethereum, Omni, Neo, Tron. Currently, most of the tokens are installed on the Ethereum blockchain.

The security of cryptocurrency is due to the fact that all transactions are carried out due to the blockchain. As we have already said, cryptocurrency is attractive in terms of safety, speed, reliability, and comfort. Moreover, one more profit from using cryptocurrency is that government authorities cannot control it. Nevertheless, the situation has become more challenging, as governments of different countries try to regulate it and restrict the use of cryptocurrency. Such attention from the authorities is due to the growing demand for this currency and the fact that it is becoming an increasingly stable source for investment. In this regard, DBX tokens were issued, which are even more reliable in use. These tokens are based on two blockchains, “Quark” and ERC-20, which makes DBX tokens safe to use, as these blockchains have been refined and improved. The DBX team managed to eliminate the shortcomings of BTC, other digital currencies, and its forks - the Quark algorithm, the anonymous Zerocoin protocol, and the ERC-20 smart contract protocol.

How does the DBX ecosystem work on two blockchains?

The DBX is a digital financial asset that is a decentralized distribution of databases (blockchains) and operates through the use of cryptographic algorithms. Although DBX tokens were issued recently, this did not stop them from taking one of the main positions in the market so quickly. Today, many cryptocurrency holders use DBX tokens. All this is because DBX developers could solve two main problems of using the cryptocurrency:

-volatility;

-risks of tightening regulation of the use of cryptocurrency. 

Due to the fact that this cryptocurrency is installed on two blockchains, the DBX team was able to provide a number of advantages to its users. Thus, users of the “DBX” ecosystem have the opportunity to use the “Quark” algorithm, which is considered one of the best in the world and protects against hacking. This algorithm is complemented by the functionality of the "Zerocoin" protocol, which ensures the security and anonymity of transactions.

The “DBX” tokens are unique because of transaction history of these coins is completely cleared. This is due to the use of new coins when minting or converting coins in the pool. Thus, it allows users of DBX tokens to make transactions completely confidential. Thanks to the ERC-20 protocol, the DBX team has ensured flexibility in operations and fast integration into the DeFi space.

Main advantages of using DBX tokens

  • Safe and fast transactions;
  • Uninterrupted operation of the cryptocurrency ecosystem;
  • Anonymity;
  • Confidentiality;
  • Interchangeability of coins, etc.

Thus, the “DBX” ecosystem team gradually implements all the main tasks that it sets for itself. The priority for the team is the development of a fundamental digital asset that can replace fiat money when making transactions for various purposes, accumulation of funds, business structures, or purchases.