Altcoins are alternative cryptocurrencies launched after the success of Bitcoin. As a rule, they act as the best substitutes for bitcoins. The success of Bitcoin as the first digital peer-to-peer digital currency paved the way for many. Many altcoins try to target any alleged limitations Bitcoin has, and came up with newer versions with competitive advantages. There is a wide variety of altcoins.
Many of the Altcoins are built on the basic structure provided by Bitcoins. Thus, most altcoins are peer-to-peer, include the mining process and offer effective and cheap ways of making transactions on the Internet. But even with many overlapping functions, the altcoins vary widely from each other.
Even with many close competitors, Bitcoin continues to head the virtual currency package. New and more innovative versions are emerging, offering modifications in such areas as transaction speed, confidentiality, proof of access, DNS resolution and much more. Some of them have gained popularity; the rest are less well known. Examples of Altcoin include Litecoin, Dogecoin, Peercoin, Feathercoin, Zetacoin, Novacoin, etc. Litecoin is considered to be the closest competitor to Bitcoin.
Here are the 3 most popular altcoins.
Litecoin is a peer-to-peer Internet currency that allows you to instantly receive almost zero payments to any person in the world. Litecoin is a global open source payment network that is completely decentralized without any central authorities. Mathematics protects the network and allows people to control their own finances. Litecoin is characterized by a faster transaction confirmation time and greater storage efficiency than the leading mathematical currency. Thanks to substantial industry support, the volume of trade and liquidity, Litecoin is a proven means of commerce, complementing Bitcoin.
Ethereum is a distributed open source computing platform, a public, box-based operating system with smart-contract functionality. Along with Bitcoin, Ethereum is considered one of the first platforms in the distributed book and blockchain technology.
Ether is a crypto-currency, the block-chain of which is created by the Ethereum platform. Ether can be transferred between accounts and used to compensate member participating sites for the computations performed. Ethereum provides a decentralized virtual machine called Turing, an Ethereum virtual machine (EVM) that can run scripts using an international network of public nodes.
Zcash is a crypto-currency that aims at using cryptography to provide increased privacy for its users compared to other crypts, such as Bitcoin. The Zerocoin protocol was improved and converted to the Zerocash system, which was then converted to the Zcash crypto currency in 2016. Development of protocol improvements and reference implementation is carried out by Zerocoin Electric Coin Company, which is usually called Zcash. The founder and CEO of Zcash Company is Zooko Wilcox-O’Hearn. Its constituent team includes cryptographer Matthew D. Green from the Johns Hopkins University. Roger-Ver was one of the first investors of Zcash.