Altcoins are alternative digital currencies that are launched after the Bitcoin’s success. The altcoins are mostly similar to Bitcoin, as they all work as per blockchain technology. The success of Bitcoin paved a path for altcoins too and today they are also getting popular among investors.
Developed in April 2011, Namecoin was the first altcoin that was used to decentralize registration domain name and made the internet censorship difficult. In a short time, it ranked among the most successful altcoins.
There are a huge number of altcoins, including Ripple, Monero, Zcash, Dash, Namecoin, Litecoin, and many more. Altcoins are a bit different from Bitcoin in terms of distribution method, hashing algorithm, and transaction speed. However, most of the altcoins do not survive for a long, excluding Litecoin and Ethereum. Litecoin has a high currency unit that uses different hashing algorithm from Bitcoin and that is the reason it is popular as ‘silver to Bitcoin’s gold’.
Similar to Bitcoin, altcoins uses a free and open-source platform at the blockchain level. After the inception of Bitcoin, around 500 altcoins are created. And some of the altcoins have different policy rules that are built for different treatment.