Exploring the Differences: Coti vs. Bitcoin, Ethereum, Ripple, and Litecoin

PUBLISHED THU DEC 14 2017 4:32 AM EST UPDATED THU DEC 14 2017 12:31 PM EST Arjun Kharpal

KEY POINTS

CNBC outlines the differences between the top five cryptocurrencies by market capitalization or value: Bitcoin, Ethereum, Bitcoin Cash, Ripple, and Litecoin. Alternative coins such as Litecoin and Ethereum have seen huge rallies in price this year. All of the coins have different use cases.

By now, you've no doubt heard about the massive Bitcoin rally this year. And you may also have read about other cryptocurrencies such as Litecoin and Ethereum surging too. But there are over 1300 cryptocurrencies in existence. And while Bitcoin dominates the market, several other digital currencies are making waves.

CNBC has created a brief guide on how the top five cryptocurrencies by market capitalization or value have performed so far this year and what the differences are between each of them. All market cap and year-to-date rise figures are accurate as of December 14.

Understanding the Top Five Cryptocurrencies

Bitcoin (BTC)

Market cap: $275.1 billion
Year-to-date rise: 1590.5%

Bitcoin invented in 2009 is the largest cryptocurrency by value. A whitepaper was released by Satoshi Nakamoto, Bitcoin's mysterious founder, outlining the aim of the project. The original document stated that Bitcoin is a peer-to-peer electronic cash system that would allow users to transact directly without the need for intermediaries such as banks or governments. Bitcoin's primary use case is as digital gold, offering a store of value and a hedge against inflation, especially in countries with unstable currencies.

Ethereum (ETH)

Market cap: $104.1 billion
Year-to-date rise: 2175%

Ethereum was launched in 2015 with a focus on smart contracts and decentralized applications (dApps). Unlike Bitcoin, which is primarily used for value transfer, Ethereum provides a platform for developers to build decentralized apps, which can perform complex computations and transactions. Ethereum's unique selling point is its Ether (ETH) token, which is used to pay for transaction fees and computational power on the network. Ethereum's ecosystem is vast, encompassing various dApps, decentralized finance (DeFi), and non-fungible tokens (NFTs).

Ripple (XRP)

Market cap: $100.2 billion
Year-to-date rise: 2465.7%

Ripple was created in 2012 with the goal of facilitating international money transfers and providing faster, cheaper, and more efficient cross-border payments. Ripple's RippleNet is a global payments network that can be integrated with existing banking systems. XRP, Ripple's native cryptocurrency, is designed to be used as a settlement asset within the RippleNet. Ripple's main use case is in the financial services industry, particularly for banks and payment providers.

Litecoin (LTC)

Market cap: $48.3 billion
Year-to-date rise: 2055%

Litecoin, launched in 2011, aims to be a faster and more versatile version of Bitcoin. Litecoin's primary innovation is its cycoin mining algorithm, which allows block times of about two and a half minutes compared to Bitcoin's 10 minutes. The result is higher transaction throughput, making Litecoin suitable for microtransactions and services that require faster confirmations. Litecoin is often referred to as the “silver” to Bitcoin’s “gold” due to its faster confirmation times and lower fees.

Coti (COTI)

Market cap: $14.5 billion
Year-to-date rise: 1520.1%

Coti is a more recent entrant into the cryptocurrency market. Launched in 2018, Coti aims to become a high-performance and scalable payments protocol for merchant applications, payment processors, and e-commerce platforms. Unlike traditional cryptocurrencies, Coti's focus is on real-time payments and faster transactions. While Bitcoin and Ethereum provide a reliable store of value and a platform for building complex applications, Coti targets a different market by offering a faster and cheaper solution for everyday transactions.

Key Differences and Use Cases

Blockchain Technology and Architecture

The table below summarizes the key differences in blockchain technology and architecture between Bitcoin, Ethereum, Ripple, Litecoin, and Coti.

Cryptocurrency Blockchain Technology Use Case Main Features Bitcoin (BTC) Distributed ledger technology Store of value Secure, decentralized, and resistant to double spending Ethereum (ETH) Smart contract platform Decentralized applications, smart contracts Complex transaction verification, computational capabilities Ripple (XRP) XRP Ledger International money transfers, cross-border payments Fast, low-cost, and efficient settlement Litecoin (LTC) Scalable, faster blockchain Microtransactions, high transaction volume Quick confirmation times, lower fees Coti (COTI) Sprite blockchain Real-time, high-frequency payments Fast confirmation times, micro-transaction capabilities

Conclusion

While Bitcoin, Ethereum, Ripple, Litecoin, and Coti all leverage blockchain technology, they each serve unique purposes and cater to different user needs. Bitcoin remains the king of digital assets, offering security and a store of value. Ethereum provides a platform for developers to build complex decentralized applications, Ripple aims to revolutionize international payments, Litecoin prioritizes speed and microtransactions, and Coti is tailored for real-time, frequent payments in merchant applications.

Understanding the characteristics and use cases of each cryptocurrency can help investors and users make informed decisions based on their specific needs.