Definition
Altcoin is an informal name for a cryptocurrency other than Bitcoin. The category can include coins native to independent blockchains as well as tokens issued through applications on existing networks, depending on the speaker's usage. It is not a technical standard, a quality rating, or a guarantee that different assets share the same characteristics. An altcoin may use proof of work, proof of stake, or another consensus design, while a token may inherit transaction processing from its host chain. Projects can also differ in issuance limits, governance, administrator powers, privacy features, and available software. A low price per unit does not necessarily make an altcoin inexpensive relative to its supply or economic activity. Useful comparisons therefore examine what the asset does, who can change its rules, how transfers are validated, and whether its claimed functionality exists independently of promotional material.
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