What is an Altcoin?
An altcoin is simply a combination of two words: ‘alt’ which is short for alternative and ‘coin’, meaning currency. It is also known as an abbrebiation of the phrase ‘Bitcoin Alternative’. Since Bitcoin’s huge success, there have been hundreds of alternatives using similar blockchain technologies for various uses. Some of these altcoins were created with amazing uses in the real world, often solving complex problems and offering interesting solutions to challenges in everyday life and in the business world.
Altcoins make up collectively what are known as cryptocurrencies. The original digital currency was Bitcoin, any other cryptocurrency is what we refer to as an ‘altcoin’. However, the term cryptocurrency can be quite confusing as some cryptocurrencies are not actually a currency. A currency is defined as “ Some of the tokens do not offer the medium of exchange function that the coins do,
What’s the difference between a Coin and a Token?
A coin is specifically a coin/digital currency which is traded and used for peer to peer transactions’. Bitcoin is the main example of this. It is used as a store of value and has a percieved value. This allows it to be transferred between users in transaction and is recognized by both parties as valuable. Coins also run on their own blockchain (or a bitcoin derived blockchain) as oppose to using another platform on which to operate.
A token on the other hand will run on a platform like Ethereum. A token can have many different uses and many of the ongoing ICO’s will use a platform like Ethereum or NEO. These tokens will then offer some specific function, however, they can also be used a medium of exchange within their specific ecosystem. It is important to remeber Ethereum can also be seen as a coin. ‘Ether’, as it is generally referred to is the currency which is used as the medium of exchange within the Etehereum platform
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