What is Altcoins and how they are related to Bitcoin Ecosystem - Buy Bitcoins News profitable bitcoin Mining

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  • What is Altcoins and how they are related to Bitcoin Ecosystem

    What are altcoins and what do they offer to the Bitcoin ecosystem?

    If there is something that we can state clearly since the arrival of Bitcoin is that it has opened an endless number of economic possibilities that we could not imagine until now.

    bitcoins

    When someone like you discovers Bitcoin and starts reading articles about what BTC is , you are likely to find the term " altcoin " or alternate currency in most articles or guides you read about digital coins . But what is an alternative cryptocoin?

    Luckily, thanks to the Bitcoin Bit2me guide you will not have to look any further! In this article you will find all the necessary information to know the alternative currencies, their advantages and disadvantages, the main characteristics on which they are developed and why they may be beneficial (or not) for Bitcoin.

    Altcoins

    About altcoins

    Bitcoin's open-source nature has led many developers to use their code as a base and develop digital coins with new algorithms, features and opportunities for the community.

    The word " altcoin " comes from the abbreviation " alternative coin ". At present there are hundreds of alternative cryptocurrencies whose capitalization you can consult yourself in listings like Coin marketcap .

    How many altcoins are there?
    To give you an example, this portal currently has 688 altcoins listed. How far is that good?


    Advantages of alternative cryptocurrency

    Innovation
    Since leaving Bitcoin on January 3, 2009, there have been many coins that have appeared in the ecosystem incorporating technical details that maybe Bitcoin had not incorporated since its launch but which has been studied its possible implementation.

    Utility
    Many of the new coins appear useful purposes for the end user. Focused on a different theme, each one tries to make a dent in a market that goes through periods of saturation frequently.

    Decentralization
    The coins that really have something to contribute is because they try to help decentralize any aspect that we can imagine of real life.

    Most relevant projects and cryptocurrency nowadays

    Because not everything is left in the simple comparison of Bitcoin (digital gold) and Litecoin (digital silver). What are the 2.0 projects present in the ecosystem of digital currencies?

    Ethereum

    Ethereum is a decentralized platform on a global scale from which any developer can create and publish smart contracts : distributed next-generation applications that can go beyond purely financial use.

    The token that allows running the network and the programs running on it is Ether .

    Maidsafe

    Privacy, security and freedom in a completely decentralized Internet . Conceptualized in 2002 by David Irvine , the SAFE network being developed by the Scottish company Maidsafe  is a network of data and communications that can provide the necessary infrastructure for each type of web service that exists in the current centralized Internet, replacing the centralized servers And intrusive systems with a fully distributed, secure and private network.

    The token used in the case of the SAFE network is Safecoin .



    Dash

    Name with which the old Darkcoin is mentioned. This digital currency was the first to use the algorithm X11 . It is a second-generation digital currency that allows instant anonymous transactions using a totally decentralized technology as you will see in the following video about what Dash is .



    Monero

    After talking about one of the most emphasized digital coins in the user's privacy, it is important to also highlight one of the projects with more acceptance among the community, Monero .

    Monero

    It is a secure, private and unclogable digital currency making use of the cryptographic " ring signature " and ensuring that all the outputs of a transaction in the block chain can not be tracked.

    A ring signature is a group of cryptographic signatures with at least one real participant but without offering us the possibility of knowing which one within the group is the real one since all appear as valid. When a transaction is performed, random transaction outputs are selected on the network and mixed with your coins before they reach their corresponding receiver.

    Augur

    Predicts the future. With such a slogan is presented Augur , a market of decentralized prediction. Platform based on the idea of ​​knowing the future based on the predictions of many people, looking for a kind of collective intelligence, which has already proved to work in other cases but now decentralized, making it even more powerful. In its first version it works on Ethereum but has its own altcoin, REP.


    Of course they are not the only ones, but now that you know some of the most interesting projects of one of the most important technological revolutions that has happened, and is happening now, worldwide. But it is time to speak also of the general disadvantages of altcoins.


    Disadvantages of alternative currencies


    Speculation

    Most digital coins have a short life cycle  or are speculation-oriented. There are few projects that really have a development team and a broad community to support it.

    The appearance of a large number of exchanges and exchange houses led to speculative bubbles that enriched some and left no bitcoins or physical money to others in a period of time that did not exceed two weeks, leaving empty of volume in the market and with Developers disappeared with all the profit they could have taken from them.

    Duplicity

    Plagiarism and throwing of coins totally similar between them but with names changed ... small modifications imperceptible and changes simply devised to favor the speculation of a new currency. There are hundreds that we can also include in this group.

    As you can see, it has both positive and negative aspects. For some it has been a rapid source of income while for others it has been a means of initiation into the world of decentralized digital coins. Aside from the benefits mentioned above .


    Universe of Altcoins

    Bitcoin, because of its open source nature, has allowed the creation of hundreds of alternative cryptocoins. If you want to see a huge list (more than 700) of the most famous altcoins and varied information like its price, web, platforms where it was exchanged.

    There are also applications for smartphone where to control the price of some of them in a comfortable way, for example  Coinfolio .

    What do they offer to the Bitcoin ecosystem?

    Although there is a greater percentage of developers and investors who only see them as a speculative medium, there are many programmers who have implemented or have taken as a reference some of the functionality of the altcoins to perform behavior tests on bitcoin or other currencies Digital images.

    If you are a curious and have been through the main forums of alternative cryptocurrencies you will see interesting debates about implementation proposals and simulation and testing tests, why not, they could also be useful for Bitcoin.

    Now that you know a little more about altcoins, do not forget to follow us and stay up to date with our new guides. ? Have you heard of altcoins mining? Upcoming !?

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