Altcoins

Definition ∞ Any cryptocurrency other than Bitcoin is called an altcoin. These digital assets frequently aim to enhance or differentiate from Bitcoin’s original design through varied consensus mechanisms, transaction speeds, or smart contract capabilities. Altcoins often address specific use cases, such as decentralized finance, non-fungible tokens, or supply chain management. Their performance and utility are critical indicators for broader market trends and technological innovation within the digital asset ecosystem.
Context ∞ The market for altcoins experiences continuous evolution, with new projects frequently emerging to challenge existing blockchain solutions. Discussions often center on their scalability, security vulnerabilities, and potential for real-world application beyond speculative trading. Regulatory scrutiny and technological advancements continue to shape the viability and market position of various altcoins, influencing investor sentiment and adoption rates.