With a plenitude of cryptocurrencies hovering around, it becomes extremely tough to make a choice when you are looking to buy crypto. While Bitcoin and Ethereum are, undoubtedly, among the most widely discussed cryptocurrencies, there is a wave of Altcoins emerging with some of them having great potential. Speaking about Altcoins, there is one that goes by the name ‘Dagcoin,’ which is governing the headlines due to its immense potency of becoming an everyday currency.
Bitcoin still holds a significant portion of the cryptocurrency market; however, there is a considerable reduction in the interest of the investors towards bitcoin due to the heavy downturn in its performance. Bitcoin is based on blockchain technology, which, as of now, is dealing with two significant issues. The first is increasing transaction costs and the second is rising confirmation time. Dagcoin, on the other hand, claims to solve these two issues by entirely removing blockchain from the picture and pitching in, what is known as, a DAG-chain.
Speaking about Ethereum, it does not intends to serve as a digital currency. Ethereum is a decentralized platform that has its own digital currency called Ether. Launched in 2015 and the brainchild of Vitalik Buterin, Ethereum enables the creation of Distributed Applications and Smart Contracts. Continue reading for more information on Bitcoin, Ethereum, and the Dagcoin.
What is Bitcoin?
The primary questions coming from the cryptocurrency enthusiasts regarding bitcoin are, is it too late to buy bitcoin or is it too late to invest in bitcoin. A number of bitcoin holders are posting in cryptocurrency forums a single question – ‘Should I sell my bitcoin?’ This is the consequence of the sudden slump in the performance of bitcoin. The opinions of the cryptocurrency experts are divided on the topic whether the price of bitcoin will increase again or not.
The primary aim of Bitcoin is to be an alternative to regular money. However, people who are holding bitcoin or those are interested to purchase bitcoin view it as an investment option rather than an alternative to the fiat currency. Instead of transacting with Bitcoin, people prefer holding it in their bitcoin wallet hoping for the price to rise. Most of the searches on Google regarding bitcoin are about the best way to sell bitcoin and how to make money on bitcoin. Nowadays there is also an option wherein bitcoin holders can lend their bitcoin and earn interest over the total value of the bitcoin they lend. Moreover, there exist certain websites who pay you in bitcoin for completing certain tasks. This is by far the cheapest way to buy bitcoin.
Speaking about how long does bitcoin take to send; in order for a bitcoin transaction to complete, an external miner requires confirming the same. In earlier days the confirmation used to happen in seconds. However, with the increase in the number of users, the miner has to deal with a lot of transactions at a given instant of time thereby increasing the transaction confirmation time. Some people complain about their bitcoin transaction unconfirmed for hours.
Overall, Bitcoin has managed to create a niche for itself in the financial system and continues to evoke interest in the cryptocurrency enthusiasts.
What is Ethereum?
As mentioned in the beginning, Ethereum is not a cryptocurrency. It is a platform that facilitates peer-to-peer contracts and applications via its own cryptocurrency known as Ether. Ether differs from Bitcoin in its purpose. The aim of Ether is not to establish itself as a payment alternative but to facilitate and monetize the working of Ethereum. Ethereum, though having the blockchain technology at its core, is entirely different from bitcoin in terms of consensus algorithms and mining technology. Ethereum mining technology is based on an algorithm called as ‘Proof of Stake’ as opposed to Bitcoin’s ‘Proof of Work.’ This means the way in which Ethereum verifies the validity of the information being added to the blockchain ledger is different from bitcoin.
Similar to Bitcoin, cryptocurrency enthusiasts are particularly interested in investing in Ethereum and closely follow the Ethereum price predictions 2020 and even the long term Ethereum price prediction 2030. Speaking about how high will Ethereum go, the cryptocurrency had a remarkable 2017 with its price reaching up to $1400, however, 2018 was not favorable to all cryptocurrencies in a whole with Ethereum sitting at around $120.
Cryptocurrency enthusiasts are hovering around Ethereum Classic as well with questions like how to buy Ethereum classic and queries on Ethereum classic future coming up in the cryptocurrency forums. Ethereum Classic is the result of internal disagreements which split the network in two. This event is similar to the creation of Bitcoin Cash from Bitcoin.
Speaking about how long do Ethereum transactions take or how long does Ethereum take to send, the situation is pretty much favorable as compared to bitcoin. A transaction in Ethereum completes in seconds as compared to minutes or sometimes even hours in the case of bitcoin. Hence, an Ethereum transfer time lies in the range of seconds.
What is Dagcoin and how is it different?
Developed in Estonia, Dagcoin exhibits a complete potential of being an everyday currency. Dagcoin leaves behind the traditional blockchain and brings in the new DAG-chain with the term DAG referring to a Directed Acyclic Graph. DAG-chain completely eliminates the old problems of rising transaction confirmation time and increasing transaction costs.
Built on the top of the byteball network, the Dagcoin technology comprises a directed acyclic graph, which is responsible for storing and ordering the data. In a directed acyclic graph the confirmation of the current transaction depends on the earlier transactions. Hence, a user can secure his/her transaction by referencing earlier transactions created by other users thereby eliminating the role of an external miner altogether and drastically reducing the transaction confirmation time.
Moreover, an increase in the number of users is favorable for a DAG-chain. This is because, in the case of a DAG, as the number of users increases so does the speed of transactions thereby decreasing the cost of transactions as well.
As mentioned before, the primary aim of Dagcoin is to become an alternative everyday currency. It does not aim to displace the fiat currency from its position but wants to provide the users with an alternative method of payment for their regular spending. Hence, the primary usage of DAG will be for the applications that require scalability close to a thousand transactions per second.
There is already an ecosystem surrounding Dagcoin comprising of Dagpay, Merchant Finder, SwipeX, and DagWallet.
- Dagpay, as clear from the name, is for the e-commerce merchants who want to send/receive payments in Dagcoin for their products and services.
- Merchant Finder comprises of all the companies that accept payment in Dagcoin.
- Users can store their Dagcoins safely and securely in the DagWallet.
- SwipeX is a currency exchange platform for those who wish to trade between various cryptocurrencies, including Dagcoins.
Overall, Dagcoin is all set to bring about a revolution in the cryptocurrency sector.