Monero vs Ethereum vs Dagcoin: What’s different in the way they bring crypto to your doorstep?
Monero vs Ethereum vs Dagcoin is an interesting comparison. At the time of writing, there are over 2,000 cryptocurrencies in the market. Different crypto users expect different features. Some expect privacy, whereas others want faster transactions. Then again, we have other crypto users focusing on smart contracts and “Distributed Apps” (DApps).
What do these three cryptocurrencies offer? Monero focuses on privacy. Ethereum offers its famous smart contract platform. Dagcoin promises to expedite transactions while keeping the fees low. An interesting mix, isn’t it? Read on, to delve more!
What is Monero?
The cryptocurrency Monero (XMR) focuses on privacy. Monero uses ring signatures, ring confidential transactions, and stealth addresses. These keep the transaction origin, destination, and amount private. This allows anonymity to Monero users with private transaction trails.
Privacy also makes Monero fully fungible. One Monero is always equivalent to another. This is different from other major cryptocurrencies like Bitcoin. Bitcoin transaction history is open. When someone identifies a tainted Bitcoin transaction, others typically blacklist that particular coin.
When another user owns that “tainted” coin subsequently, he or she will find it hard to use it later. Even if the later owner is untainted, an earlier suspicious transaction involving that coin disadvantages him or her. This reduces the effective fungibility. Monero is free from this disadvantage since the transaction records are private.
How to mine Monero?
By design, Monero makes crypto mining more decentralized. It’s very costly to manufacture an “Application Specific Integrated Circuit” (ASIC) for Monero. This prevents centralizing the mining operations into mining pools.
Crypto mining enthusiasts can buy AMD graphics cards for GPU mining of Monero. AMD R9 280x or AMD Radeon Rx 580 are good options. Miners need to install the graphics cards in their laptop or desktop, thereafter they can just follow the CPU mining process.
Users can install XMR-STAK-AMD, which is the mining software when using AMD GPU. They can download it from this GitHub repository, and install it. Users need to change pool settings.
How to buy Monero?
Crypto traders that want to buy Monero can first buy Bitcoin or Ether on an exchange like Coinbase. Where to buy Monero using Bitcoin or Ether? Users can buy Monero from the following exchanges:
How to store Monero?
The key question here is where to store Monero since not all wallets support this cryptocurrency. Monero users should first make sure that they have the right crypto wallet. They have the following options:
- Monero GUI wallet: This is the official wallet of Monero, and it works on all key desktop operating systems like Windows, Mac, and Linux. It’s a full-node wallet, therefore, the initial downloading and syncing can take some time. Users completely new to crypto will have a learning curve with this wallet.
- MyMonero: It’s a web wallet, and easy to use. However, it carries the same security risk as any other web wallet.
- Monerujo: It’s an easy-to-use Android app, however, there is no iOS version. Like every mobile crypto wallet, it has risks, and users should keep only a limited amount of Monero here.
What is Ethereum?
Ethereum or Ether (ETH) is the second-most famous cryptocurrency, and some market experts believe that it could someday eclipse Bitcoin. Bitcoin is a decentralized and disintermediated “Peer to Peer” (P2P) payment network, and it doesn’t address any other use case.
However, Ethereum brought smart contracts, DApps, and the “Ethereum Virtual Machine”. Together, these provide the ability for entrepreneurs to create decentralized business models. Hundreds of such entrepreneurs have already launched their decentralized businesses, with most “Initial Coin Offerings” (ICOs) taking place using the Ethereum platform.
How high will Ethereum go?
Crypto market experiences a significant amount of volatility. Ether isn’t immune to that. The price of Ether had reached US $ 1,377 in January 2018, however, at the time of writing, it’s US $ 105.12. So, can Ethereum reach 10,000?
Experts are factoring in the value of the Ethereum blockchain platform to predict its’ price. They contend that unlike many other cryptocurrencies like Bitcoin, more and more entrepreneurs would flock to the Ethereum platform. They will create new decentralized businesses using it. Since Ether is the native cryptocurrency of the platform, its’ demand will go up. This should result in a significant long-term appreciation of Ether. Some estimates put Ether in the US $ 11k-15k range by 2020.
How to sell Ethereum?
Most crypto exchanges deal with Ethereum. This includes prominent ones like Coinbase, Gemini, Kraken, etc. Newcomers looking to learn how to sell Ethereum for USD can sell their Ether on Coinbase. It’s easy to use. Users need to create a Coinbase account and enter their bank information.
The next step is to transfer the Ether from own wallet to the Coinbase wallet. Users can then choose the amount of Ether they would sell. There is a transaction fee.
The best way to mine Ethereum
Crypto mining enthusiasts can get an AWS mining instance (AMI) by following these instructions. The next step is to get an Ethereum wallet, and MyEtherWallet is a good choice. There are mining pools for famous cryptocurrencies like Bitcoin and Ethereum. Dwarfpool is one such well-known mining pool. The miner can then follow instructions that experienced miners have published, such as this one.
What is Dagcoin & how is it different?
A relatively new cryptocurrency, Dagcoin (dagcoins, dags) aims to address some of the challenges with famous cryptocurrencies like Bitcoin or Ether. Bitcoin uses a public blockchain network with its’ “Proof of Work” (POW) consensus algorithm. Ethereum also uses the same algorithm.
Transaction validation in these networks requires the participation of all nodes. The network can only be as fast as the slowest node. Block size limitations cause further piling up of transactions. This increases transaction fees. A Bitcoin transaction requires several rounds of confirmation and might take more than an hour.
The POW algorithm also requires miners to compete for solving a complex mathematical puzzle. This requires high processing power over a prolonged period of time. As a result, Bitcoin or Ethereum mining has a high energy cost, and sustainability is in question.
Low transaction throughput, lack of scalability, high transaction fees, and high energy cost pose a question on the viability of major cryptocurrencies that rely on crypto mining. Wider adoption of cryptocurrencies will require resolution to these. Dagcoin, developed by a project team in Estonia, attempts to address these challenges.
How does Dagcoin work?
Dagcoin uses the “Directed Acyclic Graph” (DAG) technology. This doesn’t use blocks with transactions, as the Bitcoin blockchain does. DAG uses a directed graph data structure. The order in this graph is always from earlier to later.
Transaction validation in the DAG uses not only the transaction in question, but also another existing but newer transaction. This effectively means that the validation process of one transaction also validates other transactions, and the sequence goes from older to newer.
This eliminates the need for blocks, POW, and mining. More users means higher number of transactions. Higher the number of transactions, easier will be the validation of other transactions, due to a wider network.
This improves scalability and transaction throughput. This also keeps the transaction fees low. At the time of writing, the transaction fee remains as low as EUR 0.0005 even if the transaction amount is EUR 1 million!
The Dagcoin ecosystem
The Dagcoin ecosystem currently has the following:
- Dagpay, which is a payments processing platform;
- Merchant Finder, a network of companies that accept Dagcoin;
- DagWallet and web wallet to store dagcoins;
- SwipeX, the crypto exchanges where users can buy and sell dagcoins.