Following Bitcoin's inception in 2008, the concept of "altcoins" emerged, referring to all digital currency assets excluding Bitcoin. The term stems from Bitcoin's pioneering status in cryptocurrency, with subsequent arrivals viewed as "alternative" or "secondary" coins. In reality, the altcoin umbrella is extensive, going beyond mere "coins" to include "tokens" issued on specific blockchain platforms, the prime example being ERC-20 tokens on the Ethereum blockchain.


To date, over 2,000 distinct altcoins have been created and put into circulation. Many originated as improvements upon Bitcoin, born through a process known as a "hard fork." While sharing commonalities with Bitcoin, each altcoin boasts unique functionalities and use cases. Some Bitcoin forks, for instance, retain Bitcoin's "Proof of Work" (PoW) mining mechanism, where computational power races to validate transactions and safeguard the network.


With technological advancements, numerous cryptocurrencies have ventured into exploring consensus mechanisms different from PoW to address high energy consumption and slow transaction speeds. "Proof of Stake" (PoS), a popular alternative, requires validators to hold a certain amount of tokens as "stake" to participate in block creation. Other variations include Delegated Proof of Stake, Proof of Burn, Proof of Authority, and Delayed Proof of Work, each innovatively designed to tackle specific challenges and needs.


The term "altcoin" elicits varied sentiments among different groups. Some users might perceive it negatively, implying these currencies are less "authentic" than Bitcoin. More often than not, however, the term is used neutrally to distinguish non-Bitcoin cryptocurrencies without implying positive or negative judgment. In contrast, terms like "shitcoin" or "scam coin" overtly express disdain, typically reserved for crypto projects lacking real value or technological substance.