Cryptocurrency:  cryptocurrency is a digital asset used in a transaction that uses cryptography to secure their transaction, to verify the transfer of the assets. Cryptocurrency is classified as a digital currency and virtual currency.

Bitcoin created in 2009 was first decentralized cryptocurrency the technical system upon which whole decentralized cryptocurrency is based. Bitcoin’s success in the market leads companies to discover more cryptocurrencies such as Litecon, Namecoin, PPcoin.

There are different types of cryptocurrencies available in the market on the basis of their fundamental properties :

1 SECURE  HASH  ALGORITHM:

Secure hash algorithm is a set of cryptographic hash function designed by national security agency. Cryptographic hash function has mathematical function worked on digital data. For example, calculating the hash function of received file or a downloaded file and comparing the result with the previously made hash function of the same file.

This algorithm is included in different cryptocurrencies stated below:

Bitcoin :

Bitcoin is a digital currency derived in 2009. Bitcoin offers the lower transaction fees than traditional banks and other payment mechanism use. In today’s market, more than 14.6 million bitcoin is circulating in market. There are cryptocurrencies available that are kept on public ledger on cloud. Bitcoin is not issued or provided by a bank or any other financial institution. Bitcoin can be exchanged for other currencies and products. Over 1,00,000 merchants accepted bitcoin in the form of payment. BTC & XBT are the symbols used for bitcoin. The blockchain is the public ledger used to record the bitcoin transaction.

Namecoin :

Namecoin is the cryptocurrency which is mined in the same way as BTC. Namecoin store the data on its own blockchain Transaction database. The original purpose of creating the name coin was to insert data into bitcoins blockchain directly. NMC is the symbolic representation of Namecoin. A peer to peer network handles the namecoin transaction similar to bitcoin.

2 SCRYPT ALGORITHM

In cryptography, scrypt is a password based algorithm used for deriving the key. A simple version of this algorithm is used as a proof of work in different cryptocurrencies. The large memory of scrypt come from a large vector of pseudorandom bit.

This algorithm is included in different cryptocurrencies stated below:

Litecoin :

Litcoin was released by open source client on GITHUB in 2011 and is a peer to peer cryptocurrency. Litecoins are created and transferred on the basis of an open source cryptographic protocol and is not managed by a central authority. Litecoin created a capitalized market of $ 1 billion. Litecoin confirms the transaction fastest and with improved storage efficiency. Mathematics secure the network and enhance the finance of an individual. LTC is the symbolic representation of litecoin.

Gridcoin :

Gridcoin is open source network protocol which uses blockchain technology. It has peer to peer cryptocurrency and works in the form of electric and virtual money. GRC is the symbolic representation of Gridcoin.

3 CRYPTONOTE ALGORITHM

Cryptonote is an application layer protocol. Cryptonote uses a public key which comprises of pseudorandom numbers and character that are derived with the help of sender’s public key. To prevent sender identification Cryptonote mixes the sender’s public key with other keys which makes impossible for others to identify the sender. Whereas on the receiver side for each transaction a new key will be generated whether they are same sender or receiver or different.

This algorithm is included in different cryptocurrencies, one stated below:

Monero :

Monero is an open source cryptocurrency created in 2014. The main focus of this cryptocurrency is on privacy and decentralization. Monero blockchain protects the privacy in three ways.

• Ring signature mixes the sender address with other transaction address.
• Stealth address hides the address of the receiver.

RingCt hides the amount of the transaction.

There are many more algorithms too with more cryptocurrencies.