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Ranking the best hardware wallets of 2018

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Many people use a hardware wallet to store their private cryptocurrencies offline.

Think: portable hard drive for your digital assets.

A hardware wallet, also known as a “cold wallet” or “cold storage,” is distinguished from software wallets or “hot wallets,” which are based on the Internet or on your computer.

Hardware wallets are more secure than software wallets because the private keys used to access your cryptocurrency are embedded onto the microcontroller of the device itself, making them impossible to hack.

If you have a significant investment in cryptocurrency, hardware wallets are a necessity for keeping your coins safe and away from the possibility of a cryptocurrency exchange getting hacked.

Our research team ranked the the best hardware wallets of 2018.

10. CoolWallet

CoolWallet is a rather unique hardware wallet that is designed to look and feel like a credit card. It features an LCD screen that is used to input passwords and read off seeds, making it impossible for anyone to steal them off you unless they’re physically watching over your shoulder. Hardware wallets with screens are exceptionally useful because it means that they can be used even with computers that have been infected with malware, since all transactions are displayed on the screen.

CoolWallet also boasts a control button that allows you to manage your cryptocurrencies easily, and is also built to be resilient, as it is bendable up to 15 degrees and is heat resistant up to 140 degrees Fahrenheit (60 degrees Celsius).

CoolWallet is oriented for mobile users instead of computer users, so the setup process might be cumbersome for some. The device requires you to download an app to your smartphone, then pair your phone with your CoolWallet. Additionally, some users have reported glitches and bugs when setting up their CoolWallets. Finally, CoolWallet only supports Bitcoin at the moment, meaning you can’t use it to store other cryptocurrencies.

At a price of $119, CoolWallet is a decent option for Bitcoin HODLers who want a cheap and secure way to protect their investments. Its resilient, compact design and ease of use are definite selling points for newbies. However, more serious cryptocurrency enthusiasts may want to pass on CoolWallet due to its lack of altcoin support, its glitchy setup, and its mobile-centric design.

9. Case

Case is a self-contained hardware wallet that boasts a number of unique features, from fingerprint swiping to multisig security.

Case’s most important feature is the way it stores users’ private keys. Of the three keys used by its multisig system, one is hardwired into the wallet itself, another is stored on Case’s servers, and the third is held by Third Key Solutions, a trusted cryptocurrency security firm, though users can override this and carry the third key themselves. Setting up the device via the Internet is easy and fingerprint swiping adds an extra level of security.

Additionally, Case has built-in support for the Celery exchange, allowing users to buy and sell Bitcoin directly from their wallets, without having to transfer anything to a online “hot wallet” or exchange wallet. This is a nice option for traders.

Downsides to Case include the inability to remove the first private key from the device—which means that users will not be able to access their money should Case go out of business—as well as a lack of altcoin support. Case is also priced somewhat steeply, at $199.

Case’s security measures, fingerprint support, and built-in exchange functionality make it a worthwhile option for Bitcoin traders and HODLers, though more advanced users will want to look elsewhere.

8. Cryo Card and Cryo Coin

The Cryo Card and Cryo Coin are two products from CryoBit that function similarly, offering resilient and secure cold storage for Bitcoins.

The Cryo Card is a credit card-sized hardware wallet featuring a Bitcoin address printed on the front and an encrypted private key on the back. Users who purchase a Cryo Card offer their existing wallet information when checking out, as the card itself has no interface. The Cryo Card is manufactured from stainless steel, making it the toughest hardware wallet we’ve found, able to survive just about any form of abuse.

The Cryo Coin is roughly the same as the Cryo Card, only it is slightly less expensive, as it is manufactured from nickel-coated brass.

Due to their lack of many of the features of most hardware wallets—you can’t plug them into a computer, they have no interface, and all transactions must be done manually—the Cryo Card and Cryo Coin are not recommended for anyone who needs easy access to their funds. Additionally, the Cryo Card and Cryo Coin only support Bitcoin at the moment, making them useless for anyone who needs to store other cryptocurrencies.

However, for users who want a low-tech solution when it comes to crypto storage, the Cryo Card and Cryo Coin are worth a look. Their low price—the Cryo Card retails for $50 and the Cryo Coin for $30—belies their solid construction and ability to withstand punishment, making them good long-term ways to store your Bitcoins.

7. OpenDime

OpenDime is a hardware wallet that functions as a hardware bearer bond or “credit stick,” and it is priced quite inexpensively, at $40 for a pack of three.

OpenDime’s unique feature is a physical seal on the wallet itself that secures the Bitcoins contained on it against being hacked or transferred. When the user is ready to spend the Bitcoin online, they merely need to break the seal, which reveals the private key and allows the Bitcoin to be used. An unsealed OpenDime allows the user to conduct as many in-person Bitcoin transactions as they want.

Because of this seal, OpenDime has been likened to a piggy bank, in that it needs to be destroyed in order for the Bitcoin to be used. While seemingly wasteful, this security feature makes OpenDime wallets a great long-term store of value, since users merely need to check the seal to determine whether the device has been compromised. OpenDime wallets are also great for person-to-person transactions, since these transactions take place outside of the blockchain and the Bitcoin contained in each wallet will be secure so long as the seal remains unbroken.

Like the wallets previously mentioned on this list, OpenDime does not support altcoins. Additionally, its nature as a bearer bond means it cannot be used for online transactions, at least not without destroying the seal and rendering the device useless.

However, OpenDime’s inexpensive price and unique security features make it a worthwhile option for those looking to hoard Bitcoin over the long term.

6. Digital Bitbox

Digital Bitbox is a USB stick hardware wallet notable for its altcoin support and wide variety of features.

A minimalistic device similar to the Ledger HW.1, Digital Bitbox is notable for its microSD support, allowing users to make offline backups of their wallets with a microSD card. Digital Bitbox also stores users’ private keys on a high-security chip that boasts a lifespan in excess of fifty years, ensuring that users will never lose access to their funds.

Most notably, Digital Bitbox boasts support for cryptocurrencies other than Bitcoin. At the moment, Digital Bitbox supports Bitcoin, Ethereum, and Ethereum Classic as well as ERC20 tokens, making it a good option for users who need to store these coins offline.

Finally, Digital Bitbox is priced at €59 (roughly $75), making it an affordable option as well.

Digital Bitbox’s primary downside is the lack of a display, requiring it to be paired with a computer in order to be used at all. However, its combination of accessibility, security, afforability, and altcoin support make it one of the strongest options available for cryptocurrency users.

5. BitLox

BitLox is a luxury hardware wallet designed for Bitcoin HODLers and others with cash to spare. Its suite of elite features sets it apart from the competition in myriad ways.

Similarly to CoolWallet, BitLox is designed to resemble a credit card, with a thin titanium build that is resistant to heat and water damage. BitLox also features a unique e-paper display akin to the Amazon Kindle that consumes very little battery power and functions even when the device is powered off. Most impressively, BitLox features a full keyboard, allowing users to make transactions without the use of a computer.

BitLox also boasts a large number of security features, such as an emergency PIN that irreversibly wipes all user data from the unit and the ability to generate over a hundred wallets with each unit. BitLox also features a number of convenience options, such as an internal calculator that automatically displays fees when making transactions, as well as support for multiple languages. BitLox is also compatible with Tor, allowing users to make transactions in total anonymity.

Where BitLox largely falters is its price. Its least expensive variant, the BitLox Advanced, retails for $199, while more comprehensive models are priced even higher. Additionally, BitLox currently lacks support for cryptocurrencies other than Bitcoin, though the developers claim that they will be adding altcoin and Ethereum support soon.

For Bitcoin HODLers who are looking for the ultimate in features and luxury, BitLox may be worth its steep price tag. However, altcoin users and more casual crypto traders may want to look elsewhere due to BitLox’s high price.

4. KeepKey

KeepKey is a hardware wallet that is widely recognized as one of the best on the market due to its combination of security and convenience features and reasonable pricing. It is based off of TREZOR’s hardware and firmware, but boasts a heavier aluminum design for added durability.

One of KeepKey’s most distinguishing features is its privacy and security. It supports seeds of up to 24 words in length for added insulation against hackers and also supports PINs and number randomization. KeepKey uses a Google Chrome plugin to allow users to manage their wallets via a computer, making the wallet compatible with any device so long as it is capable of running Chrome. KeepKey also boasts a high-quality LCD screen.

KeepKey’s most notable feature is its strong altcoin support. Indeed, KeepKey is currently compatible with all altcoins currently available on the market, including Ethereum, Litecoin, and Bitcoin Cash, provided the user pairs their KeepKey with a compatible software wallet.

The one major downside to KeepKey is its $99 price tag, which may be out of the range of some buyers. However, if you want a reliable, secure hardware wallet that is compatible with a wide variety of altcoins, KeepKey is easily one of the best options available to you.

3. Ledger Nano S

The Ledger Nano S is one of Ledger’s most recognized and popular hardware wallets due to its reliability, security, speed, and features.

Unlike the discontinued Ledger HW.1, the Ledger Nano S comes with a screen, making it possible to use the wallet with a computer even if that computer is infected with malware. The wallet also boasts two buttons which must be pressed at the same time in order to confirm a payment, making it impossible for hackers to hijack the Ledger Nano S and use it to make unauthorized transactions.

Like other wallets, the Ledger Nano S boasts PIN support for added privacy when using it. However, it lacks passphrase support, which may be a dealbreaker for more security-conscious users. Additionally, unlike most hardware wallets, the Ledger Nano S does not include a battery, meaning that it will shut down when not connected to an external power source.

Like KeepKey, the Ledger Nano S supports Bitcoin, Ethereum, and a wide variety of altcoins, giving it a flexibility that many hardware wallets lack.

The Ledger Nano S’ steep price of $95, its lack of passphrase support, and its lack of an internal battery are its primary downsides and may dissuade security-focused users and budget-conscious customers from buying it. However, the Ledger Nano S’ quality screen, strong security, and extensive altcoin support make it one of the finest hardware wallets available, and one of our top picks for 2018.

2. TREZOR

TREZOR is a high-end hardware wallet that offers one of the best blends of security and accessibility of any wallet on the market today.

TREZOR’s main distinguishing features are its PIN protection system and screen. Like most hardware wallets, TREZOR requires a PIN to be inputted during setup and used every time a transaction is made. Every time the wrong PIN is entered into the device, it raises the amount of time needed before inputting it again by a power of two. For example, entering 30 incorrect PIN entries would take 15 years. This makes TREZOR one of the most secure hardware wallets available.

In addition to standard seed technology, TREZOR also allows users to add a passphrase, which further adds to the security of their crypto stash. The wallet can also be set up via TREZOR’s official website, a Google Chrome plugin, and via command line for experienced users. Users who care about security should use the latter two options (and use the Chrome plugin on an offline computer), as there is a small risk of data leaking when using TREZOR’s website.

Finally, TREZOR is notable for its wide variety of supported altcoins, making it an extremely good option for those with diversified portfolios.

TREZOR is often compared to Ledger Blue, with the latter slightly edging out the former due to its greater breadth of features and superior interface. Both TREZOR and Ledger Blue are quite pricey, so lower-end users might prefer a less expensive hardware wallet. However, TREZOR’s suite of features and its slick, quality design make it impossible to ignore. If you’re looking for maximum flexibility and security in your hardware wallet, TREZOR is one of the best choices you can make.

1. Ledger Blue

The Ledger Blue is easily the most advanced hardware wallet currently available, and one of the best in terms of quality, security, and features.

The Ledger Blue sets itself apart from the competition by having a more advanced, smartphone-like design, with a high-quality touchscreen interface. It is easy to set up and offers seeds of up to 24 words in length for added security. It is also compatible with numerous desktop apps and software wallets, allowing you maximum flexibility in accessing and using your money.

Additionally, the Ledger Blue is secured against virtually all forms of tampering and hacking. Unlike other hardware wallets, the Ledger Blue does not ship with anti-tampering seals, because it doesn’t need them: due to cryptographic technology included in the wallet’s design, external tampering is ineffective. The Ledger Blue will also deactivate after three failed login attempts, while users who lose their Ledger Blues can merely buy a new one, then use their 24-word seed phrase to regain access to their funds.

The Ledger Blue is also immunized to malware attacks by virtue of the fact that it has a screen, meaning that you can set it up without connecting it to a computer and risking infecting it. Like Ledger’s other wallets, the Ledger Blue also features extensive support for Bitcoin, Ethereum, and altcoins.

The primary downside of the Ledger Blue is its price: at $199, it may be out of the range of most buyers. This is due to the touchscreen and tablet technology the wallet uses, which is head-and-shoulders above virtually all other hardware wallets.

However, for serious crypto users who have money to spend, the Ledger Blue is an unbeatable wallet, with enough security and other features to satisfy any users. Newbies may also want to consider the Ledger Blue, as its touchscreen interface makes it considerably easier to set up and use than any other hardware wallet.

Recap

Hardware wallets represent a significant investment for any cryptocurrency user due to their cost and what they represent.

While many people have dabbled in cryptocurrency through day trading and other means, purchasing a hardware wallet means you are serious about protecting the integrity of your money. While keeping small amounts of currency on software wallets and exchanges is okay, if you’re a long-term HODLer or investor, you need a hardware wallet to ensure that your assets don’t get hacked or stolen.

When looking for a hardware wallet, you need to consider security, flexibility, and usability above all else. A hardware wallet needs to be capable of protecting your assets from hackers and phishers, it should be easy to set up and use, and it should offer support for as many different cryptocurrencies as possible. Effectively, hardware wallets need to be as easy to use as regular wallets are.

If you’re ready to take the next step in your crypto adventures and purchase a hardware wallet, we highly recommend the wallets listed above. You can be sure that your assets will be safe if you use any of them. They also offer a different variety of features and are priced accordingly, so you can find a wallet that meets your needs and fits within your budget.

Given the nature of cryptocurrency, you cannot afford to take risks with your assets. A hardware wallet will allow you to safely store your crypto holdings while making it possible for you to buy and sell them and use them in business transactions. No matter your level of involvement in cryptocurrency, hardware wallets are a worthwhile investment that will pay for themselves many times over.

Ethereum, the platform for decentralized apps

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Ethereum (ETH) is a cryptocurrency and a distributed computing platform notable for its use of smart contract technology.

Launched in 2015, Ethereum is distinguished from other cryptocurrencies in part by the Ethereum Virtual Machine (EVM), a Turing-complete system that uses a global network of public nodes to run scripts assigned to it by users. (1)

Ethereum also features a cryptocurrency token called “ether” and an internal transaction pricing mechanism named “gas,” both designed to facilitate transactions on the network and combat spam. (2) (3)

Ethereum’s stability and complexity have made it popular both as a cryptocurrency and as a foundational technology for various apps and financial services, inspiring other cryptocurrencies like NEO and EOS.

Ethereum is a worthwhile investment for those looking for a cryptocurrency with a complex set of features that go beyond anything else on the market.

Overview

Ethereum was originally conceived in 2013 by Vitalik Buterin, a Russian-Canadian Bitcoin developer who sought a system for creating decentralized applications. In a white paper, Buterin argued that Bitcoin should incorporate a scripting language to facilitate app development. (4) (5) (6)

Buterin’s suggestions were not implemented, so in 2014, he formed a programming team with the intent of forming a new platform that would embody his ideas. Ethereum development began later that year, under the aegis of Switzerland-based corporation Ethereum Switzerland GmbH and the non-profit Ethereum Foundation, both funded through a Bitcoin-powered crowdfunding drive. (7) (8)

After a year of development, a beta incarnation of Ethereum, codenamed “Olympic,” was released to the public in May 2015. The first complete version of the program, named “Frontier,” was later released in July of that year. Beginning with the release of the “Homestead” edition on March 14, 2016, Ethereum is now regarded as 100 percent stable. (9) (10)

Also in 2016, the DAO, a decentralized autonomous organization, successfully raised $150 million dollars in a crowdfunding campaign to develop a set of smart contracts for Ethereum. In June of that year, the DAO collapsed in chaos after a hacker stole $50 million of the funds. (11) (12)

In response to the theft, the Ethereum community opted to perform a hard fork with the intent of reclaiming the stolen funds. Supporters of the DAO were opposed to this, and as a result, on July 20, 2016, the Ethereum blockchain was divided between Ethereum and Ethereum Classic (ETC), an entirely different cryptocurrency. (13) (14)

Since then, Ethereum has committed two more hard forks with the intent of improving DDoS protection and thwarting spam attacks. (15)

Ethereum is differentiated from other cryptocurrencies due to the Ethereum Virtual Machine (EVM), a runtime environment that governs all transactions within the system, specifically its unique system of smart contracts. The EVM is sandboxed and separated from other aspects of the Ethereum network in order to protect it from cyberattack. (16)

Smart contracts are Ethereum’s method of guaranteeing the integrity and safety of transactions. Smart contracts are responsible for carrying out the transaction of value between untrusted agents and are also capable of combating attempted collusion, censorship, and other forms of fraud on the network. (17)

While smart contracts have made transactions over Ethereum more safe and efficient in certain respects, they also possess some security vulnerabilities. For example, smart contracts make bugs and exploits publicly visible on the blockchain, potentially allowing hackers to take advantage of them before they can be fixed. This was how the DAO was hacked and had a third of its crowdfunded capital stolen. (18)

In addition to these features, Ethereum also has several programming languages built in, including Solidity, LLL, Mutan, and Serpent. This allows for easy app development in comparison to Bitcoin and other cryptocurrencies. (19)

Due to Ethereum’s breadth of features, many developers have created or proposed many different uses for the network, including online gambling, electricity pricing, prediction markets, and social media platforms. J.P. Morgan Chase and the Royal Bank of Scotland have also used Ethereum to develop custom systems based on the cryptocurrency’s smart contract technology. (20) (21) (22)

To facilitate Ethereum’s development and use in mainstream banking, the Ethereum Enterprise Alliance (EEA) was formed in March 2017. The EEA includes a large number of Fortune 500 companies, including Microsoft, MasterCard, Intel, and the National Bank of Canada. (23)

Ethereum’s stability, versatility, and credibility have helped it become one of the most popular cryptocurrencies on the market, second only to Bitcoin.

Mining

Unlike Ripple, a cryptocurrency with similar features, Ethereum can be mined, though there are a number of caveats involved.

In contrast to other popular cryptocurrencies such as Bitcoin and Litecoin, it is still possible to mine Ethereum with a GPU and get decent results. Keep in mind that excess heat generated by GPU use may cause wear-and-tear to the computer, so a cooling pad or other cooling solution is recommended if you use GPU mining. (24)

GPU mining is also best attempted with a graphics card that has at least 2 GB of VRAM, as anything lower means that it will take too long relative to electricity and heat costs to generate a single coin. AMD cards are also superior to nVidia cards for the purpose of mining Ethereum. (25)

Like with other cryptocurrencies, Ethereum mining rigs are also available for sale at varying price points, and enterprising miners can also build their own. (26)

Also like other cryptocurrencies, the income generated from mining Ethereum needs to be measured against the cost of electricity in your area. If electricity is too expensive, mining Ethereum is a bad idea because it will never turn a profit. (27)

Despite all this, Ethereum is worth mining because of its popularity and because the overhead for doing so is considerably lower compared to other leading cryptocurrencies.

Recap

Ethereum is likely to remain one of the most popular and recognized cryptocurrencies for a long time to come due to its value, ease of use, and unique suite of features.

More than a cryptocurrency, Ethereum’s virtual machine and smart contract system has given it flexibility and security far beyond what other competing cryptocurrencies can offer.

Additionally, Ethereum’s inclusion of scripting languages is a boon to software developers, who can use the system to design decentralized, open-source apps.

Ultimately, Ethereum is a worthy investment due to its visibility, its truly unique features, and the relative ease in mining it.

Stellar, the protocol for the future of money

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Stellar (XLM) is an open-source value exchange protocol and cryptocurrency designed to make exchanging money simple and easy.

Founded in 2014 and based on Ripple, Stellar has since forked into its own project with an entirely separate network and modus operandi. Stellar’s primary purpose is to function as a real-time gross settlement and remittance system, making financial transactions simple and easy and backing them with the power of the blockchain.

Since its founding, Stellar has taken its place alongside Ripple, Ethereum, and other similar cryptocurrencies to provide an all-in-one network for exchanging money and value, giving it a stability and resiliency that many cryptocurrencies lack.

For these reasons, Stellar is a worthwhile investment for your crypto portfolio.

Overview

Stellar was founded in 2014 by Jeb McCaleb, one of the creators of Ripple and the creator of eDonkey, an early peer-to-peer file sharing protocol that preceded Napster, LimeWire and similar services. McCaleb is also known as the founder of the now-shuttered Bitcoin exchange Mt. Gox, though he sold it to Mark Karpelès not long after creating it. Stellar’s development is headed by the nonprofit Stellar Development Foundation. (1) (2)

Initially based on the Ripple protocol, Stellar introduced a number of changes to its code that fundamentally diverged it from Ripple. Not long after Stellar’s foundation, it was forked from Ripple and became its own entity. In response, the Stellar Development Foundation created a new consensus algorithm for the network, bringing it online in 2015. Stellar and Ripple have since diverged so much that there is no compatibility and almost no code shared between the two platforms. (3) (4)

Similarly to Ripple, Stellar is not simply a cryptocurrency, but is designed as an all-in-one network for financial transactions. Stellar exists as a software protocol on financial servers and uses the Internet to form a global network for exchanging money. Unlike Ripple, which is centralized and proprietary, Stellar is an open-source platform that utilizes an open ledger which anyone can view and contribute to. (5)

Stellar’s central ledger is changed whenever users on the network engage in transactions. Utilizing Stellar’s central consensus protocol, transactions are monitored and changes to the ledger are made according to agreement among all servers connected to the Stellar network. This is a fundamental difference from Ripple in that no one entity or individual can take control of the Stellar network, since agreement on ledger changes must be obtained from all parties involved in Stellar. (6) (7)

This open-source approach to transaction validation gives Stellar more flexibility than Ripple, since any machine connected to the Stellar network can participate in the validation of transactions, though not all machines will be treated equally. Additionally, Stellar is much friendlier towards third-party developers than Ripple, encouraging creators to design their own add-ons and projects for the Stellar network and helping to raise money for their work. (8)

Stellar’s open-source nature has made it a hit among financial institutions in the developing world who are seeking stable and reliable platforms to build on. For example, the banking software company Oradian has begun using the Stellar network to connect and coordinate operations between microfinance institutions in Nigeria, while other similar partnerships have since been unveiled in India, sub-Saharan Africa, and the Philippines. (9) (10)

Stellar has also gained traction in the developed world as an alternative to Ripple and traditional banking mechanisms. In 2017, Stellar and IBM formed a partnership designed to increase the speed of the Stellar network and improve the efficiency of transactions. IBM also seeks to use Stellar to develop a new “cross-borders payment solution” to make transferring money around the world an easy and painless process. (11) (12)

Stellar is also distinguished from Ripple by its inflationary structure. While Ripple works to keep the amount of currency in circulation stable, Stellar automatically increases its money supply by one percent each year. This rate of increase is hard-coded into the system and cannot be modified by miners or any other entity. (13)

It’s because of all this that Stellar has become a worthwhile investment option for cryptocurrency traders interested in “smart contract” currencies. Like Ethereum and Ripple, Stellar’s framework for financial transactions gives it a strength that gives it extra credibility in the world of traditional finance.

Mining

Like Ripple, it is not possible for individuals to mine Stellar.

At the inception of the Stellar network, 100 billion Stellars were created. The only way that additional Stellars can be made is through the aforementioned inflationary structure, which caps the increase by one percent each year. This inflation happens automatically on a weekly basis, with the new Stellars created distributed throughout the network via direct voting. (14)

Because of this, mining Stellar is impossible; the only way to obtain Stellar is to buy it via an exchange, buy it via the Stellar network directly, or receive it as a result of inflation voting.

Recap

Stellar may have begun life as an offshoot of Ripple, but its developers have taken it in a decidedly different direction, establishing it as one of the hottest commodities in the “smart contract” tranche of cryptocurrencies.

Stellar provides the advantage of a robust computer network with which to process and tabulate financial transactions, coupled with a decentralized structure that makes the network impossible to hijack or hack. Stellar provides solid technical and economic backing for a wide variety of projects, particularly those reliant on open-source software and solutions.

Furthermore, the Stellar Development Foundation’s support for third-party development has helped the currency grow by leaps and bounds, allowing it to compete with Ripple’s superior marketing and centralized structure.

For cryptocurrency investors, Stellar is worth keeping an eye on for these reasons. Smart contract cryptos such as Stellar, Ethereum, and Ripple represent a new evolution in blockchain technology. Beyond serving as a store of value and a transaction mechanism, cryptocurrencies like Stellar provide all the necessary tools and infrastructure to serve as financial platforms in and of themselves.

It is because of this that Stellar is a worthy investment for crypto investors looking to diversify their portfolios. Few cryptocurrencies can match the stability, reliability, and potential for growth that it has.

Cardano, a top smart contract cryptocurrency

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Cardano (ADA) is a blockchain smart contract technology platform known for running the Ada cryptocurrency.

Launched in 2017, Cardano aims to be an all-in-one cryptocurrency platform featuring smart contracts, side chains, multi-party computation, decentralized applications, metadata, and countless other functions.

Similar to Ethereum, Ripple, and Stellar, Cardano seeks to be far more than a cryptocurrency: its goal is to function as a complete technology and financial platform, meeting the needs of 21st century finance.

While still relatively young, Cardano’s rapid development, suite of features, and technological pedigree have caused it to become one of the hottest cryptocurrencies. Interest in Cardano is only sure to increase once more of its features come online.

Crypto investors with an interest in smart contract platforms would do well to check Cardano out, because it promises a number of innovations that will allow it to possibly outcompete Ethereum, Ripple, and other competitors in the market.

Overview

Cardano was launched on September 27, 2017 by Input Output Hong Kong (IOHK), a blockchain development firm led by Charles Hoskinson, best known as the co-founder of Ethereum. (1) (2)

Cardano is primarily distinguished from Ethereum by its use of a Recursive InterNetwork Architecture (RINA), which allows for faster transactions and more security compared to other smart contract platforms. (3)

Similarly to Stellar, Cardano also uses a system of decentralized consensus in order to maintain order on the blockchain and verify transactions. All machines connected to the Cardano network participate in vetting transactions, making it impossible for any one actor to take control of the network and misuse it. Any machine connected to the Cardano network can participate in this process, though as with Stellar, not all machines will be treated equally. (4)

As part of its decentralized consensus model, Cardano uses the Ouroboros proof-of-stake algorithm to verify the integrity of transactions. Cardano designates anyone who participates in the verification of transactions as a “slot leader,” whose job is to generate new blocks in the blockchain. Anyone who owns a Cardano Ada coin is automatically regarded as a slot leader. (5)

Most notably, Cardano features a unique ledger design that was created to increase the flexibility of smart contracts utilized on the network. Cardano’s ledger separates account values from the logic behind why values are moved from one account to another, which distinguishes it from virtually every other cryptocurrency, where both entities are lumped together. This promises to make Cardano one of the best platforms for arranging sensitive financial transactions. (6) (7)

In addition to all these innovations, IOHK is currently developing a virtual machine for Cardano, along the lines of Ethereum’s EVM, which will increase the platform’s computational ability. Cardano is also implementing Plutus, a smart contract programming language designed to secure buyers and sellers from security breaches. Future updates will allow users to create apps in other programming languages, such as C, Java, and JavaScript. (8)

IOHK has stated that their primary objective with Cardano is to develop a platform that makes it possible to implement banking systems in areas where they have traditionally been too expensive to implement. Several practical implementations of Cardano have already been achieved. For example, Greece’s national education and research network has begun using Cardano to verify student diplomas. (9) (10)

While Cardano is still quite young, its pedigree as a creation of Ethereum’s co-founder, its existing features, and its ambitious development schedule have made it a cryptocurrency to watch. If you have an interest in smart contract platforms, Cardano is worth adding to your portfolio.

Mining

Like Ripple and Stellar, it is not possible to mine Cardano, but it is possible to increase your stash of it by using its unique architecture.

Cardano’s proprietary cryptocurrency Ada (named after Ada Lovelace, one of the inventors of the computer) uses a proof-of-stake algorithm instead of a proof-of-work algorithm like Bitcoin and most cryptocurrencies. This means that new coins are generated on the network not through mining, but through the coins that are already existent. (11)

What this means is that anyone who owns Ada coins and is connected to the Cardano network via a Daedalus wallet (the official wallet of Cardano) can receive additional Ada without doing anything. Even better, some Ada holders can receive transaction fees if their personal stash is large enough. It’s akin to receiving interest in a savings account, with the caveat that a user must keep their Daedalus wallet online in order for it to work. (12)

Effectively, this means that any Cardano holder can participate in the growth of the Ada supply and also make money without having to invest in expensive computer hardware.

Recap

Smart contract cryptocurrencies represent the next generation of crypto: beyond merely serving as stores of value, they function as entire financial and banking systems unto themselves. Ethereum and Ripple have led the pack when it comes to smart contract cryptos, but Cardano is quickly catching up due to its advanced features.

Cardano’s unique programming language and use of decentralized consensus has helped build it into a robust smart contract system, offering security and speed beyond that of Ethereum and Ripple. Without a centralized authority to dominate the blockchain, Cardano’s growth is only limited by its userbase, which is exploding every day.

Most importantly, Cardano’s proof-of-stake algorithm makes it one of the easiest ways for long-term crypto investors to grow their bag. Without having to invest in ASIC miners or purchase expensive computers, Cardano users can participate in the network’s growth, verify transactions, and make a tidy profit all at the same time. Few cryptocurrencies can match this level of benefits to their users.

Cardano’s major demerit is that it is not very old and is untested to a certain degree. However, the currency has proven itself through both its suite of features and the unique ways that people have found to use it.

If you have an interest in smart contract cryptocurrencies, looking into Cardano is worth your time. It promises to be one of the leading currencies in its market and potentially a pillar of world finance in the future, so it behooves you to get involved now.

EOS, the blockchain for commercial scale

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EOS is a smart contract cryptocurrency platform that has attracted attention for two claims: it seeks to completely eliminate transaction fees as well as allowing users to conduct millions of transactions per second.

Launched in 2018, EOS is superficially similar to other smart contract platforms such as Ethereum and Ripple, but it promises to supersede them through the aforementioned features.

The ultimate goal of EOS is to provide a platform that supports industrial-sized decentralized application hosting, decentralized enterprise storage solutions, and smart contract capability, combining existing smart contract functionality with cloud computing for an all-in-one technology solution.

While EOS has technically not launched yet, it is currently possible to buy EOS tokens on the Ethereum blockchain, the sale of which will fund the launch of the EOS blockchain itself later in 2018.

EOS’ developers are making bold claims, but they have shown themselves capable of backing those claims, making EOS a worthwhile investment for crypto investors interested in smart contract platforms.

Overview

EOS launched on January 31, 2018 by Block.one, a cryptocurrency development firm based in the Cayman Islands. The specifics of EOS were revealed in a white paper published in 2017, with the full platform set to launch as open-source software on June 1, 2018. To fund development, Block.one initiated a sale of EOS tokens on the Ethereum blockchain. EOS also boasts one of only two B-ratings from U.S.-based financial rating agency Weiss, with the other being awarded to Ethereum. (1, 2, 3)

As mentioned above, Block.one seeks to use EOS to solve two of the biggest problems with cryptocurrencies: transaction fees and transaction speed. Most cryptocurrencies have slow transaction times due to the nature of blockchain technology, with Bitcoin speeds in particular becoming increasingly slow due to the size of its blockchain. Fees are used to speed things up by paying miners to prioritize certain transactions, but these too have become increasingly expensive with certain cryptocurrencies such as Bitcoin. (4)

EOS aims to solve the scalability problem of currencies like Bitcoin by using multi-threaded technology, allowing it to run on multiple computer cores. Additionally, EOS uses a decentralized proof-of-stake system for its consensus protocol, making it similar to systems such as Cardano and Stellar that utilize all machines connected to their network to verify transactions, keeping the network from becoming centralized. (5)

EOS also seeks to function as an operating system, much like Windows or OS X, allowing programmers to develop decentralized applications. Two examples of platforms that utilize EOS technology are Steemit, a Medium-like blogging and content creation platform that is based on blockchain technology, and BitShares, a fully decentralized cryptocurrency exchange. (6) (7)

In addition to this, EOS’ native token, in additional to serving as currency, also doubles as bandwidth and storage, allowing anything contained on the EOS network to be instantly delivered to anyone who is connected to it. How much storage and bandwidth is allocated to each EOS user is determined by how many tokens they own. EOS tokens will allow users to participate in governing the blockchain, also in proportion to how many tokens the user owns. (8) (9)

Although not formally released, EOS has become popular among cryptocurrency enthusiasts and developers. As mentioned above, both Steemit and BitShares are being developed with EOS technology. Everipedia, a Wikipedia-like online encyclopedia, is also using EOS technology to incentivize content creation on its platform as well as defeat censorship. By using decentralized EOS tokens to store and deliver their site, Everipedia will be able to evade censorship from countries such as Turkey and Iran that ban Wikipedia and similar sites. (10) (11)

EOS is effectively positioning itself not merely as a cryptocurrency, but as a software development suite and content delivery system. EOS’ potential to host decentralized websites and applications as well as combat online censorship have made it a hot commodity among traders and a worthwhile investment.

Mining

EOS cannot be mined due to the proof-of-stake system it will use to verify transactions.

Much like Cardano, EOS’ proof-of-stake system verifies transactions not through mining, but through achieving consensus from all users on the network. This is part of what makes EOS’ claims of faster transaction speeds and no transaction fees possible, but it precludes users from being able to mine their own EOS. (12)

While it is technically possible to mine EOS at the moment, this is because the EOS tokens available for sale right now are based on the Ethereum blockchain, meaning that EOS miners are technically mining Ethereum. Once EOS’ own blockchain launches, this will no longer be possible. (13)

Recap

EOS represents a unique niche in the smart contract ecosystem: an all-in-one system for creating, hosting, and delivering Internet content.

EOS makes it possible to host any kind of web content—from blog posts to videos to podcasts and music—in a decentralized form that is impossible to censor. This makes it a valuable commodity in an era in which social media and the Internet is increasingly centralized and censorship is arguably becoming a problem.

Furthermore, EOS pledges to solve the problem of cryptocurrency scalability, which has dogged the growth of Bitcoin and other cryptocurrencies. By eliminating expensive fees and shortening transaction times, EOS could easily become as useful and indispensable as traditional financial systems.

EOS’ one major problem is that a good deal of what it promises is just that: a promise. Because the EOS blockchain has not launched yet, there is no definite way of seeing how the platform can live up to its claims. While Steemit and other platforms have achieved success through using EOS technology, there are no guarantees that EOS will work as advertised when it finally becomes available to the public.

Having said this, EOS has the potential to become one of the leading cryptocurrencies on world markets. Its unique niche of offering content creation and delivery services that can’t be censored by governments or corporations sets it apart from its competition, and its pledge to eliminate transaction fees and speed up usage have plenty of appeal to all crypto users.

Because of this, EOS is worth keeping an eye on for both smart contract enthusiasts and traditional investors alike. No other major platform is doing what it is doing.