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All About Monero and Litecoin

All About Monero and Litecoin

Cryptocurrency is a virtual form of money that was initially developed to be a store of value and transactional currency on the Internet. The first "real world" application of cryptocurrency took place in 2020 with the launch of Ether, or Bitcoin.

The second most popular cryptocurrency, which you might call Bitcoin 2.0, is the Bitcoin blockchain. Ethereum, the next biggest cryptocurrency, was developed by two brilliant computer scientists, Vitalik Buterin and Gavin Wood. They were also inspired by some other blockchain projects, such as Stellar and Counterparty.

Of course, crypto currency is not new. It was used as a medium of exchange for a long time, but it became well-known because of its properties of being both a store of value and a method of transferring value without the need for a third party.

Before these cryptocurrencies, we had the private blockchain, which used an open public ledger that anyone could access and manipulate. Because of this, fraud and manipulation became a problem.

Private blockchains are also known as public blockchains, and they are an open source technology. This means anyone can use them and there is no profit or cost to developing them.

The private blockchains however are extremely valuable because they offer so many advantages over public blockchains. The main advantages are:

The network effect - The use of private blockchains can bring the entire network value. Because the private blockchain's network effects grow faster than the public blockchain's network effects, a single private blockchain can effectively pay for the development of a public blockchain.

The permissionless architecture - If you've been looking at blockchains, then you may have noticed a similarity to permissionless architecture.A permissionless architecture is an architecture that makes it possible for anyone to connect to the blockchain, without any permission from any third party.

The permissioned architecture is the opposite of permissionless architecture. This architecture requires permission from a trusted third party.

Privacy - As noted above, with the permission architecture you must have a trusted third party to connect to the blockchain. With a permissionless architecture, you can join the blockchain without a third party.

Decentralization - Private blockchains allow you to decentralize the communication between all the nodes, allowing every node to communicate with each other. The last thing you want is to get your hands on millions of dollars worth of ETH, or Bitcoin in this case, and have no one to transfer it to.

If you're curious about private blockchain and their similarities to private blockchains from the past, you should go read Monetas founder Luis Ceze, founder of the second largest private blockchain in the world, Omni, to learn more. And please follow Monetas on Twitter.