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Litecoin vs PPCoin vs Namecoin vs Ripple

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The Bitcoin market is growing with rising exchange rates. The success of digital currency Bitcoin attracts imitators. Litecoin, Ripple, PPCoin and some other crypto-currencies promise to circumvent problems of the main bitcoin system.

Namecoin, Litecoin, Ripple and PPCoin

The digital currency Bitcoin has experienced a meteoric rise in recent months. Bitcoins are generated using a cryptographic method and stored locally. There is no central entity that stands behind the system. Since the Bitcoin system based on free open source software, so theoretically anyone can create his own Bitcoin clone. Let’s start with Litecoin first.

Litecoin :

The best known alternative is called Bitcoin Litecoin. Bitcoins are so often viewed as an electronic gold with Litecoins be seen as silver. It was now time to be seen. Fact is, the electronic currencies in recent years are coming in strong. The total value of the crypto-currency is currently at 38 million U.S. dollars. Litecoins eliminate several shortcomings of Bitcoins: The authentication time a payment is only two and a half minutes – about a quarter of the average response time of the Bitcoin network. The mining algorithm is Scrypt, so users can use standard PC hardware to mining. And the total volume of all Litecoin ever available is 84 million, which represents a four-fold the maximum volume of Bitcoin.

PPCoin :

The Bitcoin network consumes huge amounts of energy. Current estimates fall daily energy costs of approximately $ 150,000. This problem will the makers of PPCoins eliminated by the conventional mining is replaced by an alternative system. PPCoin energy consumption would decrease over time as proof-of-work blocks become less rewarding and coin generation becomes increasingly based on proof-of-stake block generation.

At present, PPCoin is technically not decentralized as it still requires centralized checkpointing. How many PPCoins be generated is dependent in part on the user’s account balance.

Namecoin :

A completely different way chosen by the makers of the Namecoin, The alternative currency is used in contrast to other crypto currencies the establishment of a decentralized domain name system. Like Bitcoin, Namecoin is a peer-to-peer system, which, assuming an honest majority of participants can not be controlled by a single state or a company.

Behind the effort is the critique of the existing system of ICANN. Users can use Namecoin to purchase domain, where there are currently only domains ending in.

Ripple :

Ripple (XRP), is also a cryptocurrency but ripple doesn’t require a blockchain or mining. Ripple is also decentralized and based on peer to peer technology, just like Bitcoin. Ripple is backed by Opencoin, a startup building a simple, global, open currency system. Ripple network is a global system for making transactions of any kind: US dollars, yen, any other existing currency and Bitcoin.

Like Bitcoin, there is a known, finite number of ripples: The Ripple network contains 100 billion XRP, the majority of which will be distributed for free by OpenCoin Inc. Ripple is currently in beta though, so the model is largely untested.

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