What is Alternative Cryptocurrency? Let's explain with examples.
Cryptocurrency is a currency that is produced and transferred digitally. Cryptocurrencies can be traded without being tied to a central authority and their security is provided by cryptography. The most known of cryptocurrencies is Bitcoin. Bitcoin is the first cryptocurrency created by Satoshi Nakamoto in 2009. Bitcoin works with a distributed ledger technology called the blockchain. The blockchain is a database where transactions are recorded and visible to all. Thanks to the blockchain, transfers can be made between cryptocurrencies in a secure and transparent way.
Cryptocurrencies offered as an alternative to Bitcoin are called altcoins. Altcoins are often similar in functionality to Bitcoin. Usually altcoin prices are related to supply and demand, speculation, regulation, etc. situations vary. Some of the altcoins use Bitcoin's technology, while others use their own blockchain or different algorithms. The number of altcoins is increasing day by day and there are thousands of different altcoins on the market.
Some examples of altcoins are:
- Ethereum: Ethereum is a platform that supports programmable transactions called smart contracts. Ethereum's own cryptocurrency is Ether (ETH). Ethereum works with an algorithm called Ethash and uses a consensus mechanism called Proof of Work.
- Litecoin: Litecoin (LTC) is a cryptocurrency that works similarly to Bitcoin. Litecoin offers faster transaction times and greater supply capacity than Bitcoin. Litecoin works with an algorithm called Scrypt and uses a consensus mechanism called Proof of Work.
- Dogecoin: Dogecoin (DOGE) is a cryptocurrency launched in 2013 that uses the image of the internet phenomenon Shiba Inu dog as its symbol. Although Dogecoin originally originated as a joke, it has gained popularity over time and has been used for philanthropic purposes. Dogecoin works with an algorithm called Scrypt and uses a consensus mechanism called Proof of Work.
In this article, we tried to answer the question of what is an alternative cryptocurrency and gave some examples. It should be noted that alternative cryptocurrencies have advantages and disadvantages. Before investing in alternative cryptocurrencies, it is important to do a good research and consider the risks.