What are altcoins?
Though Bitcoin still stands as the most popularly traded and leading cryptocurrency in the digital world, notwithstanding the number of competitors it has had in past years, more innovative cryptocurrencies keep emerging that offer members of the crypto-ecosystem newer modifications and features like faster transactions speeds, DNS resolution, more anonymity and privacy, and so much more. While a few of them have been able to stand out and gain a name for themselves in the world of cryptocurrencies, others have just been “bleh!” However, these other lesser cryptocurrencies are generally referred to as Altcoins.
You might not be aware of this but Bitcoin is just the tip of the iceberg when it comes to making transactions involving digital currencies. As of this minute, there are over 1,000 cryptocurrencies currently being traded on the digital currency market, these cryptocurrencies are referred to as Alternate Coins, or better still “AltCoins”.
Since Bitcoin was released back in 2009, a number of people that have paid close attention have noticed that it has a lot of crucial advantages over many other fiat currencies, and at the same time still has enough room for later improvement. This had led to the emergence of thousands of altcoins that still basically operate on the same Blockchain technology as Bitcoin, but with different kinds of designs that are aimed at achieving different goals.
Difference between Altcoins and Bitcoin
Though Altcoins and Bitcoin operate on the same Blockchain technology, they differ in a number of ways. While some might have a different method of distributing coin, others have a totally different economic representation.
Some altcoins also incorporate a different proof-of-work algorithm during mining, which might be because they want to fight against the use of a specialized kind of mining hardware, or just want to rely on other kinds of mining algorithm asides proof-of-work.
Another way Altcoins are different from Bitcoin is that a lot of them offer a more flexible programming language that allows developers build applications on top of them, while some other altcoins offer members a more private way of carrying out transactions than Bitcoin.
One other thing is that, some altcoins are designed specifically for the sole purpose of usage for non-monetary scenarios such as data storage pointers.
Examples of AltCoins
Like you must already know by now, there is an overwhelming number of altcoins out there, and this might cause confusion on which is best to invest in. However, some of the most commonly traded altcoins out there in the market are Litecoin, Peercoin, Dogecoin, Novacoin, Zetacoin, and Feathercoin.
A lot of people are only accustomed to the popularly traded Bitcoin. However, there are many other cryptocurrencies that pose to be valuable in so many ways. These are what are referred to as Altcoin.
Though just like Bitcoin, they operate on the blockchain technology, but these altcoins are designed for numerous purposes that make them different from Bitcoin, for example in their algorithm and programming language.
Altcoins have not yet gathered as much fans as Bitcoin, but they are definitely contenders in the world of digital currency.