3. Evolution from Bitcoin to Altcoins

Learning Objectives:

• Distinguish between Bitcoin and Altcoins.
• Understand why new cryptocurrencies (Altcoins) were created.

Learning Content:

1. What are Altcoins?
   • Altcoins are any cryptocurrencies other than Bitcoin.
   • They are created to solve the limitations of Bitcoin, such as speed, scalability, and smart contract functionality.
2. Reasons for the Creation of Altcoins:
   • Faster transaction speeds (e.g., Litecoin processes faster than Bitcoin).
   • Smart contract functionality (e.g., Ethereum).
   • Enhanced privacy (e.g., Monero and Zcash).
   • Stability in value (e.g., USDT, USDC).
3. Major Altcoins:
   • Ethereum (ETH): Used for smart contracts and dApps.
   • Litecoin (LTC): Known for faster transaction times.
   • Ripple (XRP): Used for cross-border payments.
   • Stablecoins (USDT, USDC): Pegged to fiat currencies for price stability.

Example:

• If Bitcoin is the first "car" in the market, Litecoin is a faster version of that car, while Ethereum is like a "self-driving car" because it can run programs (smart contracts) on its own.