Zerocoin and Bitcoin relationship
has been in front of the public this past month. By going from a value
of $53 to over $200 in a matter of days, the news media has been talking
about it like crazy. But since the big crash, when the virtual currency
dropped down below $100, Bitcoin has been struggling to rise back up.
It slowly made its way back above $150, before coming down to barely
higher than a hundred. Most agree that a virtual currency is what the
future will look like, but will it be Bitcoin? Some innovators are
trying out various alternatives which may end up becoming even bigger
first one is called Litecoin. This is a virtual currency very similar
to Bitcoin, using algorithms that follow suite, but the difference is
that this algorithm is said to be less susceptible to being mined with
GPUs. One big issue that many have in respect with Bitcoin is that the
algorithm used can be greatly increased by using graphic cards rather
than typical computers. So those who try to mine coins are now starting
to use specialized computers called ASICs in order to mine them, which
means the average user with a desktop has no chance to compete. Litecoin
on the other hand tries to eliminate that problem.
alternative is called Ripple. This is a startup that aims to be a
central place to transact any type of virtual currency. It was started
by people who thought that converting cash to Bitcoin was too costly
and difficult, because of various factors like possible fraud and the fact that all transactions in the Bitcoin network are public. So they
created the Ripple currency, which they hope will become a distributed
way to send money in any currency, anywhere in the world, with little to
some people think that the main problem with Bitcoin is the fact that
it is completely public. So Zerocoin was created in order to change
Bitcoin into a fully anonymous way to transact money. Created by
researchers at the John Hopkins University, it adds code to the Bitcoin
protocol so that this kind of anonymity is made possible. However to
truly achieve its goals, it would require most Bitcoin users to add such
a code, which may not be obvious to do.
which virtual currency ends up winning, it does appear like we are
still in the very early days of this new type of monetary exchange.