What is Altcoin (ALT) Crypto Beginner’s Guide
Altcoin is a decentralized cryptocurrency exchange that is set to launch sometime in 2018, and claims to be the exchange of the future. It believes that in order for crypto trading to flourish, the industry needs to rid itself of centralized exchanges that aren’t user-friendly and are easily hacked, and that all exchanges need to become decentralized, with a focus on peer-to-peer transactions.
“Altcoin” is the combination of two words, “alt” and “coin”; together, they imply a cryptocurrency that is an alternative to one of the most popular digital currencies on the market, Bitcoin. There are many alternative coins, and they differ from Bitcoin in a wide variety of ways, such as a different distribution method or by employing different mining algorithms. Altcoin is unique in that it differs by being a truly decentralized cryptocurrency that is powered by Plasma.
Altcoin offers the speed and ease of a centralized exchange, with all the security advantages of a decentralized one. It is important to Altcoin that all exchanges occur on a peer-to-peer basis, and that big corporations are cut out of the process so that all control of its cryptocurrency lies with its individual users. With Plasma smart contracts and the use of Atomic Swaps, Altcoin represents a system that many cryptocurrency exchanges may adopt in the future.
Plasma is a smart contract that locks value and provides proof of locked value to a sidechain. The proof of locked value is represented in tokens; in this case, the proof is with Altcoin’s coin, ALT. Once smart contracts lock in tokens, the tokens become available for users to transact.
Plasma utilizes Proof of Authority (PoA). An operator, such as the Altcoin main node, signs transactions and commits them to blocks. Plasma has been used for other cryptocurrencies and was first introduced by Vitalik Buterin, who works on Ethereum, and Joseph Poon, who is employed with Lightning Network.
The Atomic Swap
Atomic Swaps gain their name from the sense that if the swap doesn’t work, both participating parties lose out, and the swaps operate on the same basis as two people opening a vault by turning separate keys at the same time; two parties complete the swap at the same time, either on-chain or off-chain. If each party does their part at the same time, they will receive the coins they traded for instantly.
These swaps give participants in cryptocurrency exchanges a safe and new way to trade across different blockchains. They’re an important factor in decentralized trading since they enact instant peer-to-peer interaction and cooperation. They also ensure that users are in control of their tokens at all times.
In October 2017, Altcoin completed the first Ethereum-to-Bitcoin atomic swap; this was a big success for the crypto world. It proved that assets can be secured while trades take place, and now Altcoin is currently working on developing atomic swap wallets that allow users to automatically swap cryptocurrencies.
Altcoin offers users a truly decentralized way to exchange cryptocurrencies. Although it is still in development, its use of Plasma technology and atomic swaps is groundbreaking. It promises to be user-friendly and to value peer-to-peer exchanges, with an easy to use platform, anonymity, and a focus on the community. The cryptocurrency lives up to its name and is a viable alternative to traditional, centralized exchanges.