Here is all you need to know about Altcoins, What are The Benefits of Altcoins? Altcoins are very much like Bitcoins, except for the fact that they are supposed to improve some aspect of the original crypto-currency. Different Altcoins cure different limitations. Some of the advantages that these coins have over Bitcoin include the following: 1. Faster Production of Coins A new bitcoin is produced once every ten minutes. While this was amazing some years back, it soon became too slow a production rate for the coin. But the rules regarding the production of bitcoin are some of the most rigid ones, and the dev opers were and still are reluctant to change this. Altcoins were therefore invented to overcome this limitation. Today, there are Altcoins that are produced once every 2.5 minutes, which is much faster than the bitcoin rate. This translates to quicker confirmation speeds for different transactions, and this is rather appealing to many people. 2. Mining Using Ordinary CPUs
One of the most distinct characteristics of bitcoin mining is that it requires the use of specific equipment. Sure, you could mine the coins using your normal CPU, but the results would be minimal if any, not to mention that you have to contend with such issues as an overheated machine. The specific mining equipment, ASIC, is anything but cheap, which means that miners need to invest some capital to be successful. Needless to say, not many people can afford to become bitcoin miners. Some Altcoins however don’t need much computing power for mining, which means that a regular CPU can do a good job mining these coins. This in turn enables any interested person to become a miner. This explains why Altcoins are forever rising in popularity across the world. 3. There can be More Coins From the very launching of Bitcoin, it was set in stone that there can only be 21 million bitcoins. No matter how long it takes to reach this number, especially considering that the coins can be used in fractions, the fact still remains that there can only be that many coins. Thanks to Altcoins, crypto-currencies do not have to come to an abrupt death at any time in the future. There are countless coins to fall back on in the event that bitcoin no longer exists.
What are Some Well- known Altcoins?
Litecoin was among the very first Altcoins to be created. Launched in 2011, it was often regarded as coming second only to bitcoin. It was created by an MIT engineer and former Google engineer, Charlie Lee. It is an open source global payment method that prides its f on being decentralized. It uses Scrypt as proof of work. Scrypt can be decoded using ordinary CPUs, which makes it easy for more people to mine the coin without requiring specific software. Additionally, Litecoin generates coins every 2.5 minutes, which is four times faster than the bitcoin generation rate. This means that it is faster to confirm payment using this coin, which further means that transactions can be concluded faster.
The main aim for the invention of Ripple was to enable “instant, certain, low- cost international payments”. It stands out from Bitcoin and other Altcoins in that its proof of work ledger, the Ripple Consensus Ledger, does not require mining. This means that operations using the coin use less computing power. The coin is focused on making it easy for businesses to carry out instant payments and transparent transactions.
Monero was launched in 2014. It is mainly concerned with the security and privacy of the transactions carried out using it. A transaction carried out using Monero cannot possibly be traced back to you. One of the things that make this possible is the use of ring signature. This means that when you append your signature as the end of a transaction, several other signatures are generated, which makes it hard for the transaction to be traced back to you. Monero is also focused on decentralization, which means that no single person or entity controls the production and use of this Altcoin.
Ethereum is also one of the most critically acclaimed cryptocurrency platforms in the world, much like Litecoin. It is a decentralized software platform that allows the creation of Distributed Applications as w l as enabling Smart Contracts. The Distributed apps (Dapps) are loved for being devoid of any third party control as w l as for their transparency. They run on ether, which is Ethereum platform-specific token. The token can be used to codify, secure or trade anything.
Altcoins are many and varied. Each was created to solve a particular problem associated with Bitcoin. Different coins hold different advantages for specific transactions, so be sure to choose a coin that works best for you.