Dicussion -1 100 Words Most people often confuse blockchain and Bitcoin but they are not the same thing. However, blockchain powers Bitcoin with cryptocurrency being one of the applications of the technology (Stevenson, 2013). The popular cryptocurrencies to discuss are Bitcoin and Litecoin. Litecoin, just like all other cryptocurrencies is not issued by the governments. Litecoins are developed by a procedure known as mining. Just like Bitcoin, Litecoin uses blockchain technology to trade or transfer the coins. As opposed to Bitcoin, Litecoin has a faster transaction speed. Just like other cryptocurrencies, Litecoin’s future is not known and is also in question. On the other hand, Bitcoin has remained the most popular cryptocurrency. Just like Litecoin, Bitcoin uses blockchain technology in order to improve the security and safety of financial transactions (Stevenson, 2013). One of the most notable differences between Bitcoin and Litecoin is cryptographic proof-of-work algorithms. The other difference is that Litecoin uses the Scrypt algorithm while Bitcoin uses the SHA-256 algorithm. What makes the difference in the two algorithms is the speed they mine respective coins.
For Litecoin, the algorithm is designed in such a way that it produces four times as Bitcoin coins. This makes the system produce one coin every 2.5 minutes while Bitcoin produces only one coin every 10 minutes (Stevenson, 2013). One of the major similarities is that both Bitcoin and Litecoin use algorithms that use computer technology in processing transactions. However, Bitcoin’s algorithm has been criticized because it makes it difficult for regular users to mine Bitcoin because of the complexity of its algorithm. This is the exact opposite of Litecoin whose Scrypt algorithm is more efficient for mining cryptocurrency since it is designed in such a way that it prevents too much customization.
Dicussion -2 100 Words
Cryptocurrencies are arrays of developed techniques widely utilizing cryptography. There are various types of cryptocurrencies, for example, bitcoins, ethereum, ripple, among others. According to Pearlson, Saunders, & Galletta (2020), Ethereum refers to a platform that was launched in the year 2015 and plays a crucial role in running smart contracts. A smart contract is a contract that executes itself without being interfered with by frauds, censorships, or any forms of third parties. This cryptocurrency needs on-chain values to be used to validate transaction incentives within the given networks.
Ripple, on the other hand, refers to a platform for making currency transfers of near instances. Its payments are digital and are termed as a decentralized and an open-source. Its services do not consider the type of currencies, for instance, US dollars or bitcoins. It was launched by a private company known as Ripple, Inc., in 2012. Its investors launched XRP cryptocurrency after the establishment of Ripple. Its launching provided a currency bridge between institutions across the border at a faster rate and at lower prices (Houben, & Snyers, 2018).
Ripple is similar to Ethereum in that they are both media for exchanging currencies hence used for making payments, and during an exchange of currency, conversion to flat currency is possible. Exchanges of ether include coinbase and Karen, while that for Ripple bitsane and anycoine Direct. Also, they are both involved in the utilization of PoS consensus mechanisms. Moreover, Ripple is different from Ethereum because it validates individuals who carry out transactions in it, while Ethereum is open to everyone; joining or leaving is based on the individual’s will without the entity’s approvals (Houben, & Snyers, 2018). Lastly, I used ripple to pay for honey, which I bought through online business. This was because the use of Ripple is faster, and it is also cheaper when compared to Ethereum.