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Power of Altcoins

Altcoins are cryptocurrencies other than Bitcoin.
Simply put, Bitcoin is the first cryptocurrency and all
others are “Altcoins.”
Altcoin is a combination of the words “alternate”
and “coin”.
Altcoins were built on the success of Bitcoin by
slightly changing the rules to appeal to specific
users.
For example, Ethereum, the second-largest
cryptocurrency by market capitalisation, introduced
the idea of “smart contracts”.
These smart contracts are basically codes that run
only when predetermined conditions are met.
They execute agreements between two parties using
blockchain technology, opening possibilities for the
development of new applications for crypto.
Altcoins have improved functionality, transaction
and scaling to meet the rapidly expanding demand.
As the market for altcoins continues to expand, many
wonder if the original cryptocurrency’s lead will end
with any of the coins that came after it.
Altcoins use the same decentralized concept that
founded Bitcoin but they take things a step further
with unique features.
For example, Ethereum, the second-ranked
cryptocurrency by market capitalization, introduced
the idea of “smart contracts” which are codes that
can automatically execute agreements between two
parties using its blockchain technology.
This opened the floodgates for the development of
new use cases and applications for crypto.
Altcoins have improved on overall functionality,
transaction processing rates and generally scaling to
meet the expanding demand for their services.
As the market for Altcoins continues to expand, it’s
easy to wonder if Bitcoin’s lead will end soon as
Bitcoin’s use case is very limited.
Certain altcoins have made transactions cheaper
as well as faster.
Some consume lesser energy to be mined while
others bring in added layers of secrecy.
While few have the same proof of concept,
some altcoins operate on different proofs of
concept.
Certain altcoins like Ethereum are already
at the top of the list of cryptocurrencies.
Investors can choose altcoin according to their
requirements, as plenty of altcoins are available
in the market.
Altcoins use different mechanisms to reduce both the
cost and complexity of mining.
In other words, developers create altcoins to
improve the functionality or add new features.
While there are alternative coins that may have merit
for investors, there are others that advance
purely on hype and thrive on speculation.
Certain Altcoins are serving more purposes than
exchanging the coin for something of value, and can
be classified as “Utility Tokens” or “Security Tokens”
for example.
Many altcoins are built based on the basic structure
which is provided by Bitcoin.
Therefore, most altcoins are peer-to-peer
and provide secure and inexpensive
ways of carrying out transactions.
What are your thoughts on the power of altcoins?
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#blockchain #technology #innovation

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