Differences between Bitcoin and various altcoins

They have the same idea of a currency with no central authority, but Bitcoin and other cryptocurrencies, such as Litecoin or Dogecoin, differ in purpose, technology, and features. Bitcoin was the first cryptocurrency and came into existence as a "Peer-to Peer Electronic Cash System" with capped supply at 21 million coins. Because of this, it is deflationary in nature and has come up as a store of value, also termed "digital gold." The consensus mechanism of Proof of Work, with very high security of the system and strongly prevalent node networks, places it in a very advantageous position.

source

LiteCoin was coined, "silver to Bitcoin's gold," founded in 2011 by Charlie Lee, out of an express desire for faster transaction times and lower fees. Also based on Proof of Work to create new blocks, it does this in roughly 2.5 minutes, where Bitcoin does this in 10-minute blocks, thus allowing faster confirmation times for transactions. Litecoin's supply cap is higher-84 million coins-adding up to be more inflationary than Bitcoin's capped supply.

Dogecoin was initially set up as a joke back in 2013 with the express intent of making the virtual currency more approachable and light-hearted than Bitcoin. In contrast to Bitcoin, Dogecoin does not have a deflationary model; issuance is inflationary with an unlimited supply. The block time is about 1 minute, which makes it faster compared to Bitcoin, but less secure because of the much smaller network and its light security protocols.

However, while Bitcoin remains the known and leading digital store of value, many altcoins are a well-rounded, alternative digital means of exchange with faster transaction times, different monetary policies, and a wide variety of community-driven use cases. In fact, that is crypto's ecosystem diversity.

~ Regards,
VEIGO (Community Mod)

|| Join the Discord Server for more Details ||