When first dipping your toes into the world of cryptocurrencies, there are lots of confusing terms and technical jargon to get your head around. This can be a steep learning curve, but getting to grips with the lingo is essential if you want to take advantage of crypto’s benefits to boost your business.
Altcoins are a much-discussed topic and are increasingly relevant in the world of crypto as new coins hit the market. Whether you’re checking the Doge price or reading about the latest Ethereum update, learning all you can about altcoins is essential if you want to maximise the potential of crypto.
Let’s take a closer look at what altcoins are and discuss which altcoins businesses should be aware of.
What are Altcoins?
The very first cryptocurrency was Bitcoin, launched all the way back in 2009. Since then, countless other coins have been developed and released to the public.
Some of these rapidly faded into obscurity, while others rose all the way to the top to challenge Bitcoin’s dominance. These alternative coins were eventually referred to as altcoins and this word was used as an umbrella term to describe all coins except Bitcoin.
Ethereum, once an altcoin itself, has now attained such status that it is considered Bitcoin’s near equal. While Ethereum technically still is an altcoin, today it is included with Bitcoin as existing outside of the altcoin umbrella.
Many altcoins today operate on existing blockchains, such as the Bitcoin blockchain. Some use these blockchains unchanged, while others adapt them, known as forking, making them unique to that particular altcoin.
Bitcoin’s integration with modern businesses is nothing new, but we’re now seeing increasing adoption of altcoins, many of which can offer something different to Bitcoin and come with particular advantages. We’ve listed some key altcoins that all businesses should be aware of below.
Tether
Tether is an altcoin that was launched in 2014. It quickly garnered attention and rose through the ranks and is currently the third largest coin by market cap, with only Bitcoin and Ethereum ahead of it.
For all their benefits, cryptocurrencies are notoriously volatile. We’ve all heard the horror stories of market crashes and collapses, which can often occur for no discernable reason.
Tether was designed specifically to address this issue, and its key selling point is that its value is tied, or tethered, directly to the US dollar. This gives Tether a stability and predictability unseen in other altcoins, making it a more attractive option for businesses and consumers who have reservations about the safety and security of using cryptocurrencies.
Otherwise, Tether acts in the same way as other altcoins. It serves as a more efficient and more secure payment option. Customers can use it to purchase products with a greater degree of safety and anonymity, and businesses can take advantage of its rapid processing speeds and minimal transaction fees.
Cardano
Cardano is an altcoin created by former Ethereum developers, one that takes the principles of Ethereum and improves upon them to create something new.
One of the biggest criticisms levelled at Bitcoin in recent years is the damage it’s doing to the environment. Bitcoin mining, which is the process of verifying transactions and releasing new coins, is extremely energy intensive, estimated to have a carbon footprint as big as entire countries.
Ethereum is seen as a green alternative to Bitcoin, while Cardano can be seen as a more efficient alternative to Ethereum. With a contemporary proof-of-stake consensus mechanism, Cardano maintains the ethos of decentralised transaction verification without the environmental concerns associated with Bitcoin’s proof-of-work consensus mechanism.
The climate crisis is a pressing issue in today’s world. Consumers are increasingly aware of the issue, and it is rapidly becoming a significant factor that can influence their decision to shop with certain brands and buy certain products.
For businesses looking to integrate altcoins with their processes, it’s important they keep this in mind and choose an altcoin that does not harm the environment. In this case, Cardano could be the perfect option.
Solana
Solana was launched in 2020, making it one of the newest altcoins on this list. The Solana blockchain uses a unique algorithm called proof-of-history, which timestamps each transaction making for faster and more efficient transaction verification.
Solana offers some of the lowest transaction fees of all altcoins, making it a very attractive prospect for businesses. These low costs don’t come at the expense of speed; the Solana blockchain is widely regarded as one of the fastest in the industry.
Additionally, Solana also allows for the implementation of smart contracts. These are advanced programs that can fully automate a range of processes and operations, including payment systems and data-sharing protocols.
Businesses that are looking to adopt altcoins should be well aware of Solana, it’s one of the most exciting cryptocurrencies in the industry.
Conclusion
If you are a business owner, it’s important you’re up to date with the latest technological developments. Crypto is a booming industry that many expect is going to completely change the business world. Use this guide to learn about the most important altcoins and the ways in which they can benefit your business.
