There was a time when people had to rely on their bank for cash. They were always in the dark about how much money they had and also what was happening with their finances. Cryptocurrency has changed all that, you can now see your balance, see how much they have, and also use crypto to make real time transactions.
At the beginning every blockchain was presenting a different idea. The bitcoin blockchain was innovating on what it meant to be digital money. It was the first of its kind and has remained the most valuable coin to date. It was also the first to create a blockchain that showed all transactions that had ever been made. It was also the first currency that utilized a proof of work system. This is where users had to solve complex mathematical problems to earn the tokens. Some currencies were more focused on privacy while others focused on remaining anonymous. These features made each blockchain unique in its own way while also allowing them to remain relevant in the crypto industry.
1. Bitcoin – The First Blockchain :
A blockchain starts out as a digital list of records called the block chain. In simple terms each block contains recent transactions. It is time bound and is ordered in chronological order in case anyone wants to access it. All data that is recorded on the chain can never be changed once it has been pasted on the chain. Every currency that has since been created was based on a proof of work system as well, but what made bitcoin revolutionary was its introduction of proof of work that was not complicated, nor computationally intensive. (1)
2. Ethereum – The Digital Currency :
Ethereum distributed its cryptocurrency by mining. What this means is that every participant in the network was given a certain amount of ether(ETC) to participate. In order to get more ether they had to continue contributing time and computing resources. Some of these miners are rewarded with additional ETC while others have a chance to earn more as well. It was rewarding for them because the network grows by becoming more stable and efficient. The structure is similar to crypto tax tools in how it benefits the user who is interested in using the services of Ethereum.
3. Namecoin – The Most Private Blockchain :
Namecoin provided its users with privacy. When people go to buy or sell something on the blockchain, it is likely that the transaction will be recorded in public view. The combination of Bitcoin and Ethereum along with other cryptocurrencies that have since been created has made this type of digital currency more popular. It is possible to have a transparent database that is easily accessible. This is what blockchain offers and it is primarily done by utilizing a peer to peer network of computers. It is possible to have computers that are all connected to each other. This means that the transactions that are being made will be available to everyone and can be verified easily.
Binocs is a crypto tax software and portfolio management platform which was designed to simplify your investment process. It keeps track of all your cryptocurrencies and manages your investments for you with our automated algorithm tools and easy to use platform. (2)
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