Altcoins

Altcoins are cryptocurrencies other than Bitcoin, created to offer alternative features or solutions within the Blockchain-ecosystem/">Blockchain Ecosystem. The term “altcoin” derives from “alternative coin,” indicating its role as a substitute or competitor to Bitcoin. Altcoins can serve various purposes, such as enhancing transaction speeds, providing privacy, or enabling Smart Contracts.

Examples of altcoins include:

• Ethereum (ETH)Smart Contracts and decentralized applications (dApps).
• Ripple (XRP): Designed for facilitating cross-border payments and improving transaction speeds for Financial Institutions.
• Litecoin (LTC): Created as a “lighter” version of Bitcoin, with faster transaction times and a different hashing algorithm.
• Cardano (ADA): Focuses on Sustainability and scalability, using a unique proof-of-stake consensus mechanism.
• Polkadot (DOT): Aims to enable different Blockchains to interoperate and Share information.

Cases of altcoins usage include:

• Ethereum is used for launching Initial Coin Offerings (ICOs) and Decentralized Finance (DeFi) applications.
• Ripple is adopted by banks for real-time international payments.
• Litecoin is used for smaller transactions due to lower fees and faster processing times.