Alternative payment technologies march 2013
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This document discusses several alternatives to Bitcoin that have emerged in recent years, modifying aspects like the total coin supply, mining algorithms, and adding new capabilities. It outlines several major alternatives like Namecoin (distributed domain names), Litecoin (faster mining for regular computers), PPCoin (mining through coin holdings), Freicoin (negative interest rate to redistribute wealth), and Ripple (replacing banks by representing currencies and value through trust networks rather than blockchains). While most alternatives have failed, a few projects like Litecoin and Ripple aim to address specific issues in novel ways and have stronger long-term prospects. However, Bitcoin remains the dominant cryptocurrency.
Alternative payment technologies march 2013
- 1. Alternative Payment Technologies A few alternatives to Bitcoin Ron Gross ron@bitcoil.co.il
- 2. Imitation is Flattery Only 21,000,000 coins Bitcoin is open source You can change the code and create Bitcoin2 with more coins?! Well, it already happened 15+ times in the last 2 years.
- 3. Bitcoin Alternatives (alts) Namecoin Solidcoin Litecoin Open Transactions Devcoin IxCoin PPCoin Tenebrix Freicoin BBQCoin CoiledCoin Rucoin BitcoinX Ripple
- 4. Modifications Number of coins Inflation schedule Mining algorithm Mining speed New non-monetary operations Support for many currencies (P2P dollars and euros)
- 5. Namecoin Launched April 2011 Motivation: Free the internet Distributed Domain Names (piratebay.bit) New operations: Register/renew/list name Merged Mined with Bitcoin
- 6. Litecoin Launched Oct 2011 Motivation: Everyone is a miner Bitcoin mining was only done by strong graphics card Soon dominated by custom costly hardware (ASIC) Litecoin changed the mining algorithm so normal computers can mine
- 7. PPCoin Launched Aug 2012 Motivation: Remove the miners Bitcoin mining costs money for hardware and electricity Let people mine by holding PPCoins (In addition to miners) Complicated security model
- 8. Freicoin Launched Dec 2012 Motivation: Tax the rich Today, the rich get richer In Freicoin, the rich get poorer Negative interest (demurage) Money disappears from you and goes to miners
- 9. Ripple Launched Jan 2013 Motivation: Replace banks but not your currency Not a blockchain, not a fork! Unlike the others, a strong startup with high profile personnel. Represents money as debt/trust/IOUs
- 10. Ripple Bob Charlie Jane
- 11. Ripple $100 trust $70 trust Bob Charlie Jane $200,000 $1,000,00 trust trust Gateway = Bank
- 12. Ripple
- 14. Summary Exciting times for crypto-currencies! Lots of noise, scams, and dead projects A few interesting, strong projects Still small compared to Bitcoin
- 15. Questions?
- 16. References https://bitcointalk.org/index.php?board=67.0 https://en.bitcoin.it/wiki/Category:Alternative_cryptocurrencies https://ripple.com/wiki/ http://bitcoin.stackexchange.com/questions/tagged/ripple http://bitcoin.stackexchange.com/questions/tagged/alternatives