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Altcoins originally meant alternatives to Bitcoin. Early days of cryptocurrency development, all blockchain-based currencies were considered a variant of Bitcoin (Bitcoin) interrupt. Cryptocurrencies at the time were mainly used for payments such as Litecoin (LTC), XRP (XRP) and Peercoin (PPC). Altcoin was used as an umbrella term for cryptocurrencies other than Bitcoin.
That has changed since 2011. With the advent of over 20,000 cryptocurrencies, each one is linked to different types of crypto projects and tokens. We have also seen coin dexterity spread across the public chain sector. Decentralized Finance (DeFi)Layer 2, Decentralized Autonomous Organizations (DAOs), Stablecoins, and more.
If “Altcoin” refers to cryptocurrencies other than Bitcoin that have the same characteristics as Bitcoin, then this definition no longer fits all 20,000.
The evolved definition of altcoins is now much more accurate. Generally refers to an alternative coin within a particular track. Altcoins are often more advanced in their technical capabilities and ecosystem applications, but so far, no altcoin has surpassed Bitcoin in terms of consensus, ubiquity, or market capitalization.
So all things considered, Ether (ethereum) Will it still fit in this box?
Even Ethereum was initially perceived as just another Bitcoin wannabe in the eyes of investors. First launched in 2015 Ether didnt even make it into the top 10 cryptocurrencies that same year. At that stage, Ethereum would have fit perfectly with the old description of what was considered an altcoin.
Shaking off this stigma is another story. Ethereum’s status as the preeminent altcoin stems from new developments in both the broader crypto ecosystem and its own operational capabilities. Technically speaking, Ethereum overtook Bitcoin to become the first public chain to support Smart-His contracts, essentially catalyzing his DeFi.
Related: Tax on income you never earned?Possible after Ethereum merge
Needless to say, we have noticed that the decentralized application and community aspects of Ether’s growth have created a more vibrant community. It is not only a currency, but also an ecosystem platform. This growth was exacerbated by the initial coin offering (ICO) boom of 2017, his DeFi summer in 2020, and the launch of numerous public chains supporting the Ethereum Virtual Machine. With its power in various applications, Ether has become a viable alternative for building legitimate consensus and community support.
Granting the title of altcoin on Ethereum in 2015 made sense, but the widespread application and growth since then has made that classification a bit limiting. .
of ethereum mergeA landmark shift in Ethereums consensus mechanism from Proof of Work to Proof of Stake, but in reality The first step in a six-part processAll of the next steps are aimed at enabling Ethereum to process 100,000 transactions per second.
.@Vitalik Buterin claim to #Ethereum After completing five key phases, it will be able to process 100,000 transactions per second.
Merge
surge
The Verge
purge
splurgeA brief breakdown of what each stage means $ETH. pic.twitter.com/FnaWww8mHZ
Miles Deutscher (@milesdeutscher) July 22, 2022
Although the merger brought some improvements, including a sharp drop in energy consumption and increased security, investors did not expect prices to rise any time soon. Instead, it just laid the foundation for more infrastructure that could solve the problems for years to come.
We can also expect some of this infrastructure to include more innovative currencies emerging as market challengers to Ethereum and Bitcoin. ETH holders now have their sights set on flipping where the market value of ETH may overtake the value of his BTC, and to end the altcoin categorization once and for all, the gates are on other blockchains. It does not mean that it is closed to players. After all, cryptocurrencies are not meant to be oligopolies.
Related: ETH after merge is deprecated
The dominance of some big companies like Bitcoin and Ethereum in the blockchain space should not deter other blockchain developers or the entrepreneurial spirit of alternative networks. . Networks such as Polygon and Kusama have already shown that community building and diverse blockchain applications are not just limited to the heavyweights of the crypto space.
If Bitcoin’s position as the original cryptocurrency means that all other coins will forever be considered altcoins, Ethereum’s improvements, merged or otherwise, cannot change that. But if titles are simply a matter of semantics, altcoins have an opportunity to prove that names don’t matter. It benefits the wider community of chains and crypto developers.
James Wo Founder was CEO of Digital Finance Group in 2015, overseeing $1 billion in digital assets. He was an early investor in companies such as LedgerX, Coinlist, Circle and 3iQ. He is the founder and director of his Licensed Matrix Exchange in the United Arab Emirates and holds a Master’s degree in Applied Statistics from Columbia University Teachers College.
This article is for general information purposes and is not intended, and should not be construed as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent the views or opinions of Cointelegraph.
