If we conclude Bitcoin's discussion from the introduction of Bitcoin, its history, to the concepts and how it works, then we will know that basically, Bitcoin is just one component part of the whole cryptographic based digital currency ecosystem. It can be said, electronic payment system that carried Bitcoin era is as a new alternative electronic payment.with the name Altcoin. Furthermore, in this discussion, we will try to trace how Altcoin travels.
History of Altcoin
As it is widely known, that Satoshi Nakamoto launched Bitcoin first in January of 2009. Roughly two years later, there was an alternative cryptocurrency named Namecoin. Starting from this, alternative cryptocurrency began to appear.
Alternative Cryptocurrency or quite a lot known as Altcoin, began to explode in 2013. However, many of these alternative cryptocurrencies are eventually collapsed in the middle of the road.
Failure of alternative cryptocurrencies that fall, much due to the lack of adopters of these coins. Let's say, when the alternative cryptocurrency was first launched, and developers began to release the source code, but it was not accompanied by the growing adoption of its miners. Likewise also the users are minimal, so many of them who ultimately failed halfway.
In digital currencies before the Bitcoin era, they are not categorized as Altcoin. The term Altcoin, appears, because it is a lot of Altcoin concept similar to Bitcoin. Even many also directly build a new Altcoin by way of forking Bitcoin code. So departing from the beginning of the Bitcoin era began to emerge, the existence of Altcoin is categorized for cryptocurrency which was launched after Bitcoin.
We certainly know, that the source codeBitcoin is open source. For that convenience, everyone can develop, modify, or create new new cryptocurrency. However, almost the same as Bitcoin, each new cryptocurrency launch begins with Block Genesis. So how do people make this new type of Altcoin?
Starts a new Altcoin, starting with creating a new client reference. Usually derived from forking source code that has been there before. Can be from the type of Altcoin that has been there before, or it could be with forking from source code Bitcoin.
Creating a new Altcoin is certainly not as easy as we imagine. Because in fact the new Altcoin is not just a new forking problem, then modify some things only. There are several things to consider. Including everything that is the process of launching the new Altcoin, and also things that happen after the new Altcoin was launched.
That said, there once was a site called Coingen. The site is used to make it easier to generate new Altcoin. In fact, the process can be done quite simply. Some things like the determination of the average parameters of new blocks created, limits of unit blocks that can be mined, to the name, code, and logo. If all of that is ready, then it's ready to launch.
Usually, the launch of the new Altcoin is launched, publicly announced on the cryptocurrency community site. Well, the hardest part is bootstrapping the altcoin. Or how to make Altcoin is acceptable and adopted by others. Because at the first time launched, of course still no one else is using it. Automatically, at that time, the coin still has no market value, if no one else wants the coin.
That's the hardest thing to do as a developer. Seek to attract the attention of the adopters to use them. Starting from a service that can make it easier for someone, with applications that can run on mobile and many others.
If we look at the Bitcoin ecosystem, consisting of developers, miners, investors, traders / speculators, customers and merchants. Interestingly, in Bitcoin all these things, naturally created. Based on their own needs that should be met. For the new Altcoin, the entire ecosystem must be embraced so that the new Altcoin journey can go smoothly. Not broken in the middle of the road.
Miners, need to get special attention. Cryptocurrency, pretty much depends on these miners. Miners, quite vital in maintaining the security aspects of the cryptocurrency system. On the other hand, for the new altcoin, it must be able to attract miners to do their work. A sufficient part to attract them is in return for the hash power effort it has used.
Typically, at the start of mining or early sessions since the altcoin is launched, it will pay more to the miners. Likewise with Bitcoin at the time. Initially the miners reward is greater. And then it will be measurably reduced by half each achievement of 210,000 blocks successfully mined. And at this moment, the reward for the miners is 12.5 BTC.
Realizing that this is one of the most difficult parts, in the end there are some Altcoins who take a more aggressive approach. Trying to get the cryptocurrency community to believe and start adopting it.
That's why when first launched, the new Altcoin requires a pretty good narrative exposure. Describes the new Altcoin description. Until able to make the community believe and adopt. A good narrative exposure, an open and clear system, can make the community think of it as a valuable coin in the future.
For the new founder of the successful Altcoin, they usually get rich. That's because the coin that has been mined is acceptable and becomes of value in the market openly. Furthermore, we are then familiar with the term Pump and dump.