Currently, the uses of cryptocurrencies are diversified and go beyond the well-known purchase-sale transactions ...
With the arrival of Bitcoin in 2009 the impact of digitization in today's world has been more evident. And it is that, despite the doubts of many people, it managed to show that electronic currencies can be more beneficial than traditional ones.
Such was the success of this digital currency that today there are various types of cryptocurrencies . Some of them with characteristics very similar to the original cryptocurrency and others totally different, thus allowing to enter different branches of the world of finance and technology.
Currently the uses of cryptocurrencies are so diversified that they go beyond the well-known transactions to buy bitcoin . Each of them has a different focus that can range from the creation of digital money to the creation of content or even the Internet of Things.
The variety of uses can be confusing for someone just starting out. Especially when talking about those whose function is the privacy of their users. The alternatives for using cryptocurrencies go much further than simply buying with Bitcoin.
Cryptocurrencies that work like digital money
First of all, there are the best known cryptocurrencies, those that work as virtual money. These allow instant transactions and purchases of products or services with the money stored in a digital wallet, the most common being the bitcoin wallet .
Beyond Bitcoin, there are other cryptocurrencies that can be used as digital money, such as Litecoin (LTC), Stellad Lumens (XLM) and BRipple (XRP) and DogeCoin (DOGE). The latter emerged as a parody of Litecoing that grew progressively and today has a capital of more than 200 million dollars.
Each of them has unique characteristics for its operation and a diversity of users from different parts of the world. However, the purpose is the same, to fulfill the function of an international means of payment.
Cryptocurrencies dedicated to online privacy
Since the inception of Bitcoin, privacy and data protection has been a matter of concern among users of cryptocurrencies. However, over time it has been shown that the protection of users is key in all types of exchange platform and virtual wallets.
In this sense, different integrated solutions have been developed that ensure privacy. Coinjoin, for example, allows completely anonymous transactions for both parties. On the other hand, Cryptocurrencies like ZCash (ZEC) and Monero (XMR), Verge (XVG) are private.
The difference between anonymous and private cryptocurrencies is that the former keeps a record of all transactions carried out, even if it is done under a pseudonym. On the other hand, in this case the origin of a payment can be traced using elements such as the IP address, for example.
Private cryptocurrencies, meanwhile, make it impossible to identify the origin of any transaction carried out. For this reason, in some cases it is associated with cyber crimes, however, there can be many reasons to keep a fully legal transaction private.
The use of cryptocurrencies has revolutionized the way of doing business for many. And the fact is that there are no longer the limitations that until a few years ago held back the possibility of making payments internationally without having to pay high commissions, or having to wait for their liquidity.
