This proof of ownership can be used to claim altcoins by tethering altcoin blocks to Bitcoin blocks.
For example, this can be achieved by merged mining in which effectively bitcoin miners can mine altcoin blocks while mining for bitcoin without any extra work.
The Best Bitcoin Alternatives and What Makes Them Unique (Part 2)
Pegged sidechains: Sidechains, as the name suggests, are blockchains separate from the bitcoin network but bitcoins can be transferred to them.
Altcoins can also be transferred back to the bitcoin network.
Investing and trading these alternative coins is also a big business, albeit not as big as bitcoin but enough to attract new investors and traders and provide liquidity to the market.
Combined altcoin market capitalization is shown as follows: The graph is generated from https://coinmarketcap.com/.
This graph shows that 83 Ethereum $68,472,253,587 $697.94 Ripple $31,340,920,806 $0.801723 Bitcoin Cash $17,182,167,856 $1,010.08 Litecoin $9,952,905,688 $179.11 NEO $5,638,100,000 $86.74 Cardano $5,450,310,987 $0.210217 Stellar $5,438,720,268 $0.294010 EOS $4,347,501,290 $6.04 Monero $4,211,690,257 $266.40 The data is taken from .
Many concepts were invented even before bitcoin but with bitcoin were not only new concepts, such as a solution to the Byzantine Generals’ Problem, introduced but also previous ideas such as hashcash and Proof of Work (PoW) were used ingeniously and came into the limelight.
Why This Matters for Blockchain Technology
Since then, with the introduction of alternative coin projects, various new techniques and concepts have been developed and introduced.
To appreciate the current landscape of alternative cryptocurrencies, it is essential to understand some theoretical concepts first.
users own a certain number of bitcoins. This proof of ownership can be used to claim altcoins by tethering altcoin blocks to Bitcoin blocks. For example, this can be achieved by merged mining in which effectively bitcoin miners can mine altcoin blocks while mining for bitcoin without any extra work. Merged mining is explained later in the chapter. Pegged sidechains: Sidechains, as the name suggests, are blockchains separate from the bitcoin network but bitcoins can be transferred to them. Altcoins can also be transferred back to the bitcoin network. This concept is called a two-way peg. Investing and trading these alternative coins is also a big business, albeit not as big as bitcoin but enough to attract new investors and traders and provide liquidity to the market. Combined altcoin market capitalization is shown as follows: The graph is generated from https://coinmarketcap.com/. This graph shows that 83 Ethereum $68,472,253,587 $697.94 Ripple $31,340,920,806 $0.801723 Bitcoin Cash $17,182,167,856 $1,010.08 Litecoin $9,952,905,688 $179.11 NEO $5,638,100,000 $86.74 Cardano $5,450,310,987 $0.210217 Stellar $5,438,720,268 $0.294010 EOS $4,347,501,290 $6.04 Monero $4,211,690,257 $266.40 The data is taken from . https://coinmarketcap.com/ There are various factors and new concepts introduced with alternative coins. Many concepts were invented even before bitcoin but with bitcoin were not only new concepts, such as a solution to the Byzantine Generals’ Problem, introduced but also previous ideas such as hashcash and Proof of Work (PoW) were used ingeniously and came into the limelight. Since then, with the introduction of alternative coin projects, various new techniques and concepts have been developed and introduced. To appreciate the current landscape of alternative cryptocurrencies, it is essential to understand some theoretical concepts first.
Key Points to Remember
- This proof of ownership can be used to claim altcoins by tethering altcoin blocks to Bitcoin blocks.
- For example, this can be achieved by merged mining in which effectively bitcoin miners can mine altcoin blocks while mining for bitcoin without any extra work.
- Pegged sidechains: Sidechains, as the name suggests, are blockchains separate from the bitcoin network but bitcoins can be transferred to them.
- Altcoins can also be transferred back to the bitcoin network.
Conclusion
users own a certain number of bitcoins. This proof represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.