A new wave of digital currency called Cryptocurrencies are here to change the way money is handled forever. These systems work more like virtual currencies than the conventional ones do. Unlike normal currencies, these are not printed like money. They are generated through complex mathematical algorithms that govern the generation of the currency. It is cryptographically protected by complex encryption protocols and runs entirely on computers.
How do Cryptocurrencies work? Cryptocurrencies are a kind of digital cash created from mathematical code. They work autonomously, apart from traditional banking and governments. They differ very significantly from conventional fiat currencies in a number of ways. Still, you could still conduct a double spend transaction like any other monetary asset.
The major differentiator between Cryptocurrencies and traditional currencies is the block chain. When you send a Cryptocurrencies payment, it goes through the network which consists of a series of complex computers. This is how the cryptography protects the payments. The users generate the addresses for the digital money and the computers keep track of the entire process. Once a sufficient number of consecutive confirmations have passed, the transaction is approved and the money gets transferred from the client’s computer to the service provider’s computer.
The most popular among the other Cryptocurrencies used around the world are Litecoin, Namecoin, and Dogecoin. The Litecoin is the oldest of the bunch and the most well known. Litecoin uses a Proof of Work system similar to that of the Bitcoin protocol. Since the Litecoin protocol is comparatively old, many experts consider it the best of the Cryptocurrencies.
On the contrary, Dogecoin is considered as one of the newest and most revolutionary Cryptocurrencies in the world today. It is believed that the founder of this new type of Cryptocurrency, Doge, actually tried to solve some of the problems faced by the early Cryptocurrectors. Through this innovative solution, Dogecoin transactions are instant, there is no need for a large amount of money in order to make a transaction and finally, the system has no relation with other similar systems.
These are the major difference between Dogecoin and other Cryptocurrencies. Both of them have their own unique characteristic and features that make them stand out. While there are several more Cryptocurrencies being worked on, the two mentioned are probably the most widely known ones right now. One thing that is for sure though, is that the developers of these two currencies are continuously working on making the system more efficient so that more people will be able to take advantage of it and enjoy its benefits.