For an ordinary man , Altcoin can be defined as a cryptocurrency other than Bitcoin(BTC) and Ethereum. However like an umbilical cord, all the Altcoins are linked either to the BTC or ETH platform. Most of the cryptocurrencies are forked from either of these two platforms. Altcoins can use diverse consensus method to validate transactions and create new blocks or even try to distinguish themselves from either BTC or ETH by enabling added capabilities or purposes.
Most of the altcoins are developed by developers who have a different approach towards tokens or cryptocurrency.
- Altcoin refers to all cryptocurrencies other than Bitcoin (BTC) and Ethereum (ETH
- Tens of thousands of altcoins on the market
- Altcoins are classified on the purpose it is designed for
- The future of Altcoins is unclear but if Blockchain exist and are used Altcoin will exist.
The genesis of the word “Altcoin” comes from two words “Alternative” and “Coin” and most are forks or branches of the Blockchain but they are not compatible with the original Blockchain, BTC or ETH. Most of the forks have occurred because a section of developers had a diverse opinion and decided to diverge and start their own coin.
Most Altcoins are used within the parent Blockchain for a specific purpose. Ether is used in Ethereum to pay transaction fees. There have been instances where developers had forked from Bitcoin Blockchain and emerged to compete with Bitcoin as a mode of payment e.g. Bitcoin Cash.
There are varied forks which have been created to raise money for specific projects. An example is the token Bananacoin forked from Ethereum and went on to create a fund for a banana plantation in Laos that claimed to grow organic bananas.