What is an Altcoin

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What is an altcoin

What is an ALTCOIN

The term altcoin comes from the two word alternative and coin. It is the main umbrella term for any other cryptocurrency types which is different from bitcoin ,in other words, it is not the name of the specific cryptocurrency. we have thousands of Altcoins and varies in price, popularity and other details.

Though bitcoin is the original cryptocurrency and maintain its popularity, it is also the catalyst for the birth of blockchain technology. However bitcoin has some restriction which has led to formation of many blockchains. These blockchains possess their own unique characteristics thus they require their tokens and cryptocurrencies. More so, altcoins were discovered and implemented.

Different types of altcoins

As said, there thousands of altcoins each of which has been discovered to solve various problems, for examples, some altcoins like litecoin and bitcoin cash are bitcoin clones others are not even recognized as currencies at all. Moreover, different industries maintain altcoins as a solution to real word issues.

Bitcoins is a digital currency we’ve earlier been familiarized with (both ins and out) but apart from bitcoin, there are hundreds of other digital currencies out there ,they are known as ALTCOINS or alternative to bitcoins. Ripple, 3cash, Ether, monero and dash(few to mention) you can also check the full list of over 3000 coins on “All Cryptocurrency“. However, there are also several altcoins that don’t do abundant fascinating in any respect. The overwhelming majority of altcoins merely tweak some parameters that don’t matter abundant, or supply one thing which will sound needful but unfortunately does not. For example Associate degree altcoins incorporate a bigger total quantity of coins; it simply denotes that every individual coin is valueless and worthless. If such associate degree altcoin find blocks quicker, it simply implies that the actions of a group need lots of confirmations from an analogous level of security. As such, most altcoins supply no profits ahead of bitcoin in any respect. Plus, they need lesser hash power securing them, involving few developers up them and square measure typically less beneficial, thanks to smaller network effects. And whereas several altcoin promise helpful and needed options, upon nearer examination several of those guarantees square measure simply that guarantees.  This additionally, denotes that altcoins square measure usually riskier than bitcoin. There exchange rate square measure typically a lots of volatile, and over the years just no member of altcoin family have maintain their worth against  bitcoin ; most have returned and gone.

What is an altcoin
What is an altcoin

In the same vein, several altcoin is thought- about outright scams, primarily created to counterpoint or oppose its inventors and early adopters.

However different industries utilize and use altcoins as solution to real –world issues. One of them is FACTOM – and altcoin used to secure and validate asset which are mainly digital by the application of layers of reluctance security. These layers make the blocks immutable making it difficult to penetrate. Aside from FACTOM here are some other examples of altcoins with practical uses.

Golem altcoin

Golem is an altcoin built on ethereum  blockchain. Golem is used in some computing tasks, such as machine learning or CGI rendering.  Its primary goal is to make supercomputing more available to the public. By doing so it will curb the monopoly of products that have centralized system and make supercomputing service less expensive.

SIACOIN

Siacoin is a cryptocurrency used in decentralizing cloud storage platform, sia which is competing against big names like drop box and goggle. What make sia unique amidst already established significant player is; unlike the big companies that force users to asset their terms and conditions or taking risk of getting their account crapped, sia renders users more control through mutual consent. In other words, it cannot do any operation to their account without taking permission from the owner and vice versa. Sia locally encrypts all the files that members uploads to their storage system and gives the secret keys only to the data owner therefore making no one accessible to the files without the permission to the owner .

NAV COIN

This member of altcoin family enables private money transfer which bitcoin cannot provide. With nav coin, transactions are not accessible nor the amount of money a wallet hold being revealed even if a powerful computer is in use. It is faster, cheaper and easy to transfer money using the nav coin.

RIPPLE

Ripple aims to make secure, the ledgers and account system of the banking industry more secure.at this moment, thousands of disjointed ledgers spread around the world. Because of this reasons, makers of markets spend huge amount of money to make payment. ripple is usually employed to be a game changer because it will connect all the payment system in just one ledger, providing banks and different organization with their block chain system.

INVESTING IN ALTCOIN

Altcoin are a good start for those that are thinking of crypto currency as an investment. This is because the risk is not as high as with bitcoin or ethereum. It is majorly like investing in penny stores where you can invest in little amount in different portfolio.

The best altcoin to invest in 2018

Now that we are aware of the various top altcoin in the market, you might be pounding about which of them is the best crypto to invest in.  It is encouraged that in-depth research is being made before investment decision and different portfolio creation should be established. At the time of writing this article, the total value of the crypto currency make rallies around 225.11bilions .although there are volatile and stable altcoin, each of them definitely holds a lots of promises as the blockchain technology continues to develop and expand every day.

Differences between altcoins and bitcoins

Altcoin differs from bitcoin in series of ways; some possess different economic model or different coin distribution method like; Altcoin that were given to all citizens of a country. Others employ different proof-of –work mining algorithm, perhaps to resist specialized mining hardware or maybe they don’t even rely on proof of work at all.

Altcoin tends to solve completely many different problems and many of the ‘ALT’ family are not currencies at all. The vast majority of altcoins project are using blockchain technology to solve world problem in various industries from medicine to real estate.

 

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