![]() ![]() We will look at Namecoin and Ethereum as examples of alt chains.įinally, there are a number of bitcoin contenders that offer digital currency or digital payment networks, but without using a decentralized ledger or consensus mechanism based on proof of work, such as Ripple and others. Alt chains use the same basic building blocks and sometimes also use a currency or token as a payment mechanism, but their primary purpose is not currency. These alt chains implement a consensus algorithm and distributed ledger as a platform for contracts, name registration, or other applications. In addition to the alt coins, there are also a number of alternative blockchain implementations that are not really “coins,” which I call alt chains. These alt coins are notable for historical reasons or because they are good examples for a specific type of alt coin innovation, not because they are the most valuable or “best” alt coins. In the next section we will examine a few notable alt coins, such as Litecoin, Dogecoin, Freicoin, Primecoin, Peercoin, Darkcoin, and Zerocoin. Examples include Colored Coins, Mastercoin, NXT, and Counterparty. These meta coins, meta chains, or blockchain apps use the blockchain as an application platform or extend the bitcoin protocol by adding protocol layers. There are a number of protocol layers implemented on top of bitcoin’s blockchain. The most common form of software spawned from bitcoin’s source code are alternative decentralized currencies, or alt coins, which use the same basic building blocks to implement digital currencies. The rate of innovation is what makes this space so exciting and guarantees this chapter will be incomplete and out-of-date as soon as it is published.Ī Taxonomy of Alternative Currencies and Chainsīitcoin is an open source project, and its code has been used as the basis for many other software projects. With new coins introduced every day, it would be impossible not to miss some important coin, perhaps the one that changes history. ![]() That perhaps makes them even more interesting for study and highlights the fact that this chapter is not to be used as an investment guide. ![]() Some of the most interesting examples of alt coins are in fact complete failures from a monetary perspective. Instead, we will highlight a few examples that show the breadth and variety of the ecosystem, noting the first-of-a-kind for each innovation or significant differentiation. The purpose of this chapter is not to evaluate or qualify alt coins, or even to mention the most significant ones based on some subjective assessment. Mostly, we will look at alternative coins, or alt coins, which are digital currencies implemented using the same design pattern as bitcoin, but with a completely separate blockchain and network.įor every alt coin mentioned in this chapter, 50 or more will go unmentioned, eliciting howls of anger from their creators and fans. In this chapter we’ll examine the many offshoots of the bitcoin and blockchain inventions: the alternative chains, currencies, and applications built since the introduction of this technology in 2009. This invention at the heart of bitcoin has ushered a wave of innovation in currencies, financial services, economics, distributed systems, voting systems, corporate governance, and contracts. ![]() Chapter 9. Alternative Chains, Currencies, and Applicationsīitcoin was the result of 20 years of research in distributed systems and currencies and brought a revolutionary new technology into the space: the decentralized consensus mechanism based on proof of work. ![]()
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