INTRO - Litecoin (LTC)

 Litecoin (LTC) is a P2P and open source project invented by Charlie Lee in 2011. The LTC token resembles Bitcoin in many ways, but has many distinct differences which has led market enthusiasts to dub it the silver to Bitcoin’s gold. 

Litecoin is a fork of Bitcoin Core, and has a block generation time that is a quarter of Bitcoin’s, at 2.5 minutes and 4 times as many max tokens at 84 million tokens. It is also uses a different hashing algorithm that is more demanding of memory. 

Its mining algorithm requires processes to take place serially, which significantly reduces the advantage of those capable of purchasing ASIC hardware. The intention was to make mining as decentralized as possible, i.e. it makes the power to purchase expensive hardware less of a factor in determining mining capacity. Bitcoin, at this point, is well-known for its mining to be out of reach of most people. Litecoin is a financially lucrative alternative to the number 1 token in this regard.

LTC continues to be one of the most discussed and monitored cryptocurrencies still, years after its launch, a distinction not shared by many other cryptocurrencies. The quicker transaction processing times has led some analysts to believe that Litecoin will be a better alternative to Bitcoin in real-world applications, but scalability and performance improvements to Bitcoin (and Litecoin itself) could change opinions in the years to come. Founder Charlie Lee himself has said that Bitcoin does well as a store of value, while Litecoin is optimal for day to day transactions. 

Beginners Guide to Decentralized Crypto Exchanges

Decentralized crypto exchange platforms have grown to become the best marketplace for buying, selling, and exchanging cryptocurrencies. 

But centralized exchanges (CEX) are still the most common platforms which integrate intermediaries. 

Centralized crypto exchange platforms typically share similar characteristics with traditional financial institutions. Their primary feature is the intermediaries’ presence, responsible for managing traders’ assets.

CEXs have been handling the greatest trading volumes in the history of crypto trading. Nonetheless, their shortcomings cannot go unnoticed. Centralization puts users’ privacy, funds, control, and more at risk. 

Therefore, decentralized exchanges came into the picture to give everyone the real value of their assets. So, what are decentralized exchanges?

Decentralized Exchanges (DEXs): a guide

Decentralized exchanges create a trustless platform, enabling peer-to-peer transactions between users without the need for third parties. Following the current ban on cryptocurrencies in some countries, DEXs provide an opportunity for cryptos to grow and become more successful.

Application of the peer-to-peer transactions commences from the development of digital assets that can stand for a particular fiat or cryptocurrency. Furthermore, developing the exchange tokens is also achievable through escrow, a multi-signature protocol, and assets representing a portion of a company’s shares.

Types of DEXs

There are different designs in the building of DEXs that distinguish their functionality in the trading of currencies. This factor categorizes them into two:

Currency-Centric DEXs

Currency-centric DEXs run on a single blockchain, limiting their escrow services to the native token of the platforms. For example, using Ethereum, all escrowing activities surround Ether and ERC-20 tokens. If other exchanges run on the blockchain, their native tokens are subject to similar services. This infrastructure is what traditional exchanges employ in their trade.

Currency-neutral DEXs

Unlike currency-centric exchanges, this category facilitates the interactions between different native tokens besides theirs. They act as a pathway for traders to exchange any cryptocurrency without dependence on an exchange’s native token. Additionally, some use decentralized order books and matching besides regular purchase and sale of digital assets.

Atomic swaps are a standard integration to allow activities in currency-neutral DEXs, creating smart contracts to facilitate trade on other blockchains.

How DEXs Become Truly Decentralized

Decentralized exchanges need to employ total decentralization in four vital elements:

Decentralized depositing of funds within the exchange

Decentralized order books, which display digital buy and sell orders

Decentralized order matching, which matches bids and asks by traders to initiate cryptocurrency trade

Decentralized asset exchange whereby accounts on the exchange perform crypto transactions

Benefits of DEX Platforms

DEX protocol accompanies a variety of advantages that boosts its usability and sustainability, as mentioned below:

Privacy

Unlike centralized exchanges, which require users to submit their personal information, DEXs are entirely private, giving anonymity to every user. There is no need to create an account on DEXs, and users can complete their transactions while still anonymous. 

Security

Securing the user’s assets is the primary priority for DEXs. Centralized exchanges largely depend on a central server. In case a hack occurs, these platforms experience significant losses, seeing as all the information is stored in a central location. DEX networks utilize distributed nodes that provide security to the exchange platforms. Distributed nodes eliminate any issues concerning downtimes and slow databases that make the system prone to cyber-attacks.

Authority

In CEX platforms, a single body is responsible for controlling the exchange activities. The situation is different with DEXs that use nodes. Users participate in voting as every node plays a role in governance to make necessary implementations for the exchange platform. DEXs further eradicate risks of government involvement in the exchange’s activity.

Decentralization

Centralized exchanges have access to a user’s private keys. CEX platforms manage the funds and assets a user owns. However, with DEX’S decentralized feature, no one can access the private keys belonging to the user, giving them full control over their funds and assets.

Trustless

Private keys are solely in the hands of the owners. Personal custody of a user’s assets is practical since they are stored on a personal wallet. Therefore, you do not need to trust the exchange’s system even during any platform breaches. Thanks to the blockchain-powered exchanges, the funds and assets are intact, stored on the personal wallets, and decreased chances of loss.

Demerits of DEXs

Reduced Functionality

DEXs present limited trading options; users can only buy and sell. CEXs, on the other hand, offers lending, margin trading, stop-loss features, and more. Moreover, since the trader is in complete control over their funds, the exchanges have no responsibility for what happens to your assets; it creates a risky environment for trade.

Liquidity

DEXs have a problem with liquidity due to low trading volumes in the past. Considering the increased adoption by traders, there is an upsurge in trading activity on DEXs eradicating liquidity limitations. 

Usability

The technicality of DEXs’ features is hard to comprehend for novice traders in the market. Most require users to connect to an exchange’s dApp or set up a personal wallet to interact with a dApp. Some require setting up full nodes that actively participate in the networks, which is a more tasking endeavour. However, some of these exchanges offer more straightforward interfaces for beginners to be well acquainted. 

Block DX: The Only Truly Decentralized Exchange

Block DX is the most decentralized, safe, and fastest DEX platform currently. It boasts full decentralization of deposits, order books and matching, and trade. It runs on the Blocknet protocol, an open-source protocol facilitating interoperability in both public and private blockchains.

Block DX’s native token is BLOCK, utilized in the network’s transaction fees and governance. It is a PoS coin, rewarding BLOCK holders and node services on the Block DX platform. Furthermore, users have the freedom to trade with any pairs among the currencies supported by Block DX, including BTC, LTC, DOGE, BCH, and over 100 more. 

The exchange serves users with limitless trading, withdrawal, and deposits at cheaper transfer fees and zero withdrawals fees. Furthermore, traders have an additional advantage to leverage data from the Block DX UI. It ensures fast transactions through its network of distributed nodes and in-built DoS protection.

The endgame of Block DX is to provide an uncensored, trustless, open-source, secure, reliable, and truly decentralized network. Interoperability will improve the quality of services and liquidity of blockchains through the Blocknet protocol. Finally, it proves that DEXs have the scope to take the reins in crypto trading from CEXs soon.

INTRO - Ripple (XRP)

Ripple Labs created the Ripple network and the XRP token in 2012 with the purpose of making cheaper, faster cross-border payments. Ripple was thought of by Jed McCaleb (founder of the Stellar Foundation), Arthur Britto and David Schwartz, and developed from an earlier idea called OpenCoin. 

Ripple’s specific purpose as a settlement system has seen it form multiple partnerships with banks, forming a network that has since been termed as “RippleNet”. Ripple’s extensive collaboration with banks - including cross-border pilot programs - has won favor with financial institutions in several continents, and executives from the company have been known to discuss the implementation of decentralized financial systems with high-level financial industry insiders, like the IMF’s Christine Lagarde. 

Ripple also has close ties to SBI Financial Holdings, a Japanese financial giant that is keen on leveraging the token to improve financial services in Asia. President Yoshitaka Kitao has joined the Ripple Board of Directors. This, along with the extensive efforts to help banks test cross-border payments using Ripple’s technology, has emboldened investors, who believe that Ripple will act as something of a bridge between traditional banking systems and new technologically-empowered systems. 

Ripple’s quicker settlement times compared to Bitcoin (transactions take a few seconds to get validated) and its lack of energy-intensive mining has led some people to say that it is a better means of exchange than Bitcoin itself. Having said this, Ripple is still primarily focused on becoming a new form of SWIFT, one that can assist existing banks and its customers speed up international payments.

INTRO - Ethereum (ETH)

Ethereum (ETH) is a decentralized computing platform founded by Vitalik Buterin, Charles Hoskinson, and many others. Development began in 2014, with the official release occurring in mid-2015. Described by Buterin as a decentralized computing platform, Ethereum is a more wide-ranging application of the Decentralized Ledger Technology pioneered by Bitcoin. 

Ethereum was designed with the intention of having a scripting language for application development, which Bitcoin lacks. Dapps (decentralized apps) are now some of the most intense research and development areas in the digital currency space. As mentioned by Buterin, Ethereum trades some security for versatility, though the development team is working extensively on improving security and scalability. 

Though it does take inspiration from Bitcoin, it differs in many ways. One notable difference is that the consensus mechanism algorithm gives ASICs less of an advantage. Block times range from 10 - 15 seconds as opposed to Bitcoin’s 10 minutes. One notable incident in Ethereum’s history occurred in 2016, when a smart contract flaw resulted in the theft of approximately $50 million worth of Ether. This subsequently resulted in a hard fork, splitting the Ethereum blockchain in Ethereum (ETH) and Ethereum Classic (ETC).

Ethereum itself, like Bitcoin, has inspired many projects, including rival platforms that seek to address the shortcomings of Ethereum. These platforms include EOS and Tron, which at the moment are its two closest competing platforms. Ethereum’s purpose of creating a platform for decentralized applications is its most vaunted aspect, as dapps are widely considered to bring the next era of adoption as specific, well-developed and user friendly crypto-based applications bring legitimacy to digital assets in the wider world.

INTRO - Bitcoin (BTC)

Bitcoin (BTC) is a pioneering digital currency invented by a yet-unknown individual or group of individuals presented as Satoshi Nakamoto. Early development began in 2008, during the financial crisis of 2008, with the landmark paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” being released on October 31, 2008. The primary purpose of Bitcoin is in the space of P2P financial transactions, though some supporters envision it more as a store of value.

Often called “Digital Gold” for its monetary properties which are similar to gold, the enduring popularity and market resilience of Bitcoin has encouraged the growth of other cryptocurrencies, and as a result it has come to be known as the “mother” or “father” of all cryptocurrencies. Initially limited to all but the most ardent technology enthusiasts, Bitcoin was responsible for convincing the masses that a P2P financial system devoid of middlemen and centralized was in fact possible, a characteristic made possible through its Proof-of-Work consensus algorithm which incentivized good behavior.

Since its inception in early 2009, Bitcoin has been through a number of changes and incidents, yet continues to thrive as the most popular token in the cryptocurrency market. This includes the famous Mt. Gox incident and several such cycles of price spikes and drops. The enduring nature of Bitcoin is a quality that is highly cherished by its proponents. Many tokens have been inspired by it, including similarly envisioned token Litecoin (LTC), which is often said to be the silver to Bitcoin’s gold. Because of the popularity and established nature of Bitcoin, it is often the base pair with which other cryptocurrencies are traded.

A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.

Bitcoin, created in 2009, was the first decentralized cryptocurrency. Since then, numerous cryptocurrencies have been created. These are frequently called altcoins, as a blend of bitcoin alternative. Bitcoin and its derivatives use decentralized control as opposed to centralized electronic money/central banking systems. The decentralized control is related to the use of bitcoin's blockchain transaction database in the role of a distributed ledger.

Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the Federal Reserve System, corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers. In case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto.

As of September 2017, over a thousand cryptocurrency specifications exist; most are similar to and derived from the first fully implemented decentralized cryptocurrency, bitcoin. Within cryptocurrency systems the safety, integrity and balance of ledgers is maintained by a community of mutually distrustful parties referred to as miners: members of the general public using their computers to help validate and timestamp transactions, adding them to the ledger in accordance with a particular timestamping scheme.^[13] Miners have a financial incentive to maintain the security of a cryptocurrency ledger.

Most cryptocurrencies are designed to gradually decrease production of currency, placing an ultimate cap on the total amount of currency that will ever be in circulation, mimicking precious metals. Compared with ordinary currencies held by financial institutions or kept as cash on hand, cryptocurrencies can be more difficult for seizure by law enforcement. This difficulty is derived from leveraging cryptographic technologies. A primary example of this new challenge for law enforcement comes from the Silk Road case, where Ulbricht's bitcoin stash "was held separately and ... encrypted. Cryptocurrencies such as bitcoin are pseudonymous, though additions such as Zerocoin have been suggested, which would allow for true anonymity.