“Altcoin” or “Alternative coin” is a word often used to define any cryptocurrency that is not Bitcoin. It can be used to define cryptocurrencies that are based on completely different blockchains than Bitcoin or cryptocurrencies that were created as a result of a hard fork or soft fork of Bitcoin.
What is Altcoin?
Altcoin is an alternative cryptocurrency to Bitcoin, often created as a result of a fork. Altcoins are often similar to cryptocurrencies they originated from, but they feature critical improvements in specific areas, such as transaction speed, transaction fees amount or scalability. Altcoins are generally created to fix specific problems of a “parent” cryptocurrency. For example, Bitcoin Cash is a Bitcoin fork that was created when Bitcoin scaled to a point where transactions processing could often reach an unacceptably long time without a user willing to set a very high transaction fee.
What is the difference between a Token and Altcoin?
Altcoins and tokens differ mostly by their use cases. Altcoins are alternative cryptocurrencies. Hence, they are created as a financial tool that allows making payments and transfer value from one address to the other. The goal of any cryptocurrency is to give the holder an alternative to traditional fiat money with as many practical applications as possible. On the other hand, tokens are most often created as utility coins that are used to within an ICO project. Investors are able to purchase tokens in exchange for the real cryptocurrency, receiving the right to use services or buy products of a company that issued the tokens.
List of altcoins
- Bitcoin Cash
- Bitcoin Gold
- Ethereum Classic