Ethereum vs Litecoin vs Dagcoin
The word ‘Volatility’ has almost become synonymous with the cryptocurrency market. Cryptocurrency enthusiasts majorly view the digital currency as an investment option rather than an everyday alternative to fiat currency. Therefore, similar to what goes on in the traditional stock market, they require diversifying their funds when investing in cryptocurrencies in order to stay largely safe from the extremely volatile nature of the crypto market. Anybody who is looking to diversify his/her investment in the cryptocurrency market needs to have considerable knowledge as to which cryptocurrency to invest in. In this post, we are going to talk about Ethereum, Litecoin, and Dagcoin.
Litecoin is not a new player in the cryptocurrency market. Launched in 2011, it is, almost, as old as Bitcoin. In fact, the blockchain technology utilized in Bitcoin and Litecoin is one of the oldest. Litecoin, similar to bitcoin, serves as a digital currency. Ethereum, on the other hand, is more of a blockchain based platform for running smart contracts and crowdsourcing funds for new projects with its own cryptocurrency known as Ether. Dagcoin is the freshest addition to the cryptocurrency market which completely eliminates blockchain from the equation by introducing DAG-chain. Based on newer technology, Dagcoin, apart from being an investment option, has the primary aim of becoming a preferred alternative to the fiat currency.
What is Ethereum?
Launched in 2015, Ethereum achieved a remarkable growth rate. The Ethereum price prediction 2018 largely hit the mark forcing the cryptocurrency investors to wonder how high Ethereum will go. Cryptocurrency investors are now keenly looking over onto the Ethereum price predictions 2020 and even the long-term Ethereum price prediction 2030 is evoking considerable interest.
The big difference between Ether, cryptocurrency of the Ethereum platform, and Litecoin is the limit imposed on their production. In the case of Litecoin, the limit is 84 million tokens. This means that there won’t be any new Litecoin after crossing the limit. On the other hand, for Ether, there is no limit making it possible to mine Ether for an indefinite period of time. Ethereum releases the same number of coins into the system each year. Hence, the answer to the question ‘is Ethereum mining profitable’ is a big fat ‘Yes’ as there is no limit to how much can you make mining Ethereum.
However, internal conflicts did arise in Ethereum giving rise to the fork of Ethereum, known as Ethereum Classic. As far as Ethereum Classic future and Ethereum Classic prediction are concerned, the opinion of the cryptocurrency experts appears divided.
One of the biggest strengths of Ethereum is its block time or Ethereum transfer time. The block time of Ethereum is just about 15 seconds which provides the answer to the two most important questions asked by cryptocurrency investors, which are how long do Ethereum transactions take and how long does Ethereum take to send. On the other hand, if we take into account the transaction fee of Ether, the same is about $0.85 per transaction which is significantly higher than most of the cryptocurrencies out there.
What is Litecoin?
Litecoin, popularly called as the clone of bitcoin, began its journey with the bitcoin codebase and a few unique attributes of its own. The biggest advantage that comes with Litecoin is its presence in the cryptocurrency world since 2011. Bitcoin and Litecoin are one of the oldest cryptocurrencies that exist today. This survival of Litecoin for all these years make cryptocurrency enthusiasts wonder how high will Litecoin go and what could Litecoin be worth in 10 years. People are particularly interested in how to buy Litecoin or how to purchase Litecoin due to its low transaction fees. A transaction done in Litecoin costs about $0.04, which is much lower as compared to a transaction done in Ether.
Although the development of Litecoin is in the image of Bitcoin, it is much better than Bitcoin in transaction fees and block time. The block time of Litecoin is about 2 minutes and 19 seconds, which is, indeed, faster than Bitcoin but is slower than Ethereum. This makes cryptocurrency experts divided in their opinion on the future of Litecoin and this clearly reflects in the Litecoin price prediction 2019 and the Litecoin price prediction 2020.
Litecoin uses a proof-of-work algorithm during the mining process. The algorithm utilized in Litecoin is entirely different than the algorithm utilized in the Ethereum mining process. Litecoin uses a ‘scrypt’ algorithm which favors high-speed RAM instead of processing power and thus it can be utilized on less powerful systems that use less electricity. However, unlike Ethereum which uses a totally different algorithm, Litecoin’s mining algorithm, just like a significant number of other cryptocurrencies, can suffer from ‘mining-centralization’ as well when a small-sized group of miners obtains a considerable amount of power thereby gaining the ability to manipulate the network. This also divides the cryptocurrency experts on their opinion on how high can Litecoin go and whether should you buy Litecoin or not.
What is Dagcoin & how is it different?
Developed in Estonia, Dagcoin (dagcoins, dags) is the first cryptocurrency that has the primary aim of becoming an everyday currency that the people can utilize on their regular spending. Catering to this aim, the company behind the development of Dagcoin cryptocurrency created an entire ecosystem around it including DagWallet, Dagpay, Merchant Finder, and SwipeX.
- Dagpay enables an e-commerce merchant to send/receive Dagcoins from buyers in exchange for their products and services.
- DagWallet, similar to other cryptocurrency wallets, is a medium to hold Dagcoins.
- Merchant Finder is the complete platform or a system that consists of all the online businesses that are accepting Dagcoins as a mode of payment in return of their products or services. Already, a countless number of merchants has joined the Merchant Finder environment of the Dagcoin ecosystem.
- Dagcoin’s primary aim is to become an alternative everyday currency; however, this doesn’t mean that people cannot utilize it as an investment option. SwipeX is a currency exchange platform that enables Dagcoin holders to trade between various cryptocurrencies.
The major advantage of Dagcoin comes from the fact that it utilizes DAG-chain instead of Blockchain. DAG or a directed acyclic graph works on a completely different mechanism than Blockchain. While in the blockchain, an external miner is required to confirm a transaction, in a DAG-chain, there is no role of a miner. A transaction confirms itself by referencing earlier transactions confirmed by the users thus reducing the transaction confirmation time drastically.
If you are of the opinion that an increase in a number of users can negatively affect the performance of the DAG-chain, then you must know that DAG-chain is highly scalable. More the number of users, better its performance will become thereby decreasing the overall cost of a transaction. There is no concept of blocks in a DAG-chain. The transactions run directly into the DAG networks making the entire process much faster than those of blockchain based on proof-of-work and proof-of-stake.
In short, if blockchain is not able to solve the problems of scalability and increasing transaction costs, Dagcoin has the capacity to render blockchain obsolete in the very near future.