Wednesday, December 18, 2013

An Overview of the Altcoin Marketplace

Disclaimer: The altcoins mentioned in these articles are not being endorsed by Bitcoin Magazine. Please proceed with caution.


This overview is geared towards users who are new to Bitcoin and other cryptocurrencies, and interested in mining.



“We need more than one coin for the world. Because one coin [would] centralize [the] crypto world.” user CoinBuzz



Overview


I believe there is a strong desire to recreate the times during early Bitcoin mining where the hardware required to solve a block was already owned or could easily be assembled at a low difficulty and get the full block reward. Some folks power down their miner when mining Bitcoins isn’t profitable. Others point their miners to altcoins.


Altcoins, for this series of articles, are defined as any cryptocurrency alternate to Bitcoin. This would include altcoins such as Litecoin, PPCoin, Terracoin, Freicoin, Primecoin, etc.


Some folks think altcoins really should be called “ScamCoins” because a lot of them don’t do what Bitcoin did… and that was bring a totally new paradigm to the table, create a decentralized currency that would be as valuable as its users saw fit. But some exclusive Bitcoin enthusiasts see altcoins as a waste of time. All copies of copies that don’t build on each other or add anything new or useful to the world. Here’s what Gavin Andressen, lead developer for Bitcoin, said about altcoins:


“Maybe altcoins will be an important safety valve in some future crypto-currency-dominated world. Maybe if there is lots of economic growth and some technical reason prevents the velocity of money from accelerating to match the increased demand for transactions people will use altcoins to fill the gap. Right now, I don’t see the altcoins fulfilling any unmet need, and I think they just divert engineering talent and potentially confuse customers who have a hard enough time understanding Bitcoin.”


I think this unmet need he referred to can be summed up with a few points:




  • Buyers think Bitcoin is too expensive and are psychologically satisfied by owning whole units of a cryptocurrency.




  • Miners want to try mining and solving blocks.




  • Developers want to release their own cryptocoins.




  • Buyers, Developers, and Miners want coins to solve non-financial problems.




  • Buyers, Developers, and Miners want exclusive coins that preserve the value of unused mining equipment.




Gavin does have a point and altcoins can rob talent and time away from Bitcoin. People could be creating new ways to earn Bitcoin and making new markets that are more profitable than mining. On the contrary, these new coins could serve to prove out techniques for verifying transactions and experiment with reward systems to see what people like best.


In some cases altcoin developers can band together with Bitcoin developers to solve a common problem. Altcoin developers could check in new ideas and bug fixes on coins that are low risk with a low value instead of affecting Bitcoin users. Bitcoin is currently valued just above 10 billion dollars as of today.


In the end, I think developers of Altcoins have proved that progressive steps can be made to provide unique currencies to the world. Experiment on the Bitcoin blockchain, fork Bitcoin or Litecoin, and try new ideas with digital currencies.


I will provide a list of coins based on the cryptsy.com market, which I believe is the largest altcoin market available. It also is a market that doesn’t have withdrawal minimums and as long as you have an amount that can cover the transaction fee you are free to exchange as much or as little currency as you want.


As of December 18th the following altcoins can be traded for Bitcoins, Litecoins, or Primecoins.


This table was compiled using these sources: bitcointalk, cryptocointalk, and cryptsy.































































































































































































































































































































































































































































































































































































































































































See this post for more altcoin resources.


Table Key


ANN – Searching on google for ANN [Insert Coin name here] will get you to the announcement pages of most coins. I’ve listed the announcement pages here that have official block rewards, block explorers, and client sources for the altcoins that have been released.


The total amount of coins – This is the maximum amount of coins that will be issued by a particular altcoin. Some coins are programmed with a reward low to restrict the amount of coins in circulation. Others have high rewards to satisfy those decimalphobes who like mining whole numbers of coins.


Child Of? – Every coin descends from another coin (with the exception of Bitcoin). Sometimes coin creators will clone a coin they like to carry forward an older coin’s good features and improve the bad ones. I used this forum thread to populate most of the info in this column.


Premined? – Any altcoin maker that premines a coin creates a situation where a person or group with the premined coins have the ability to profit and abandon a coin after profits have been made. There are some exceptions where coin owners use the premined coins to pay developers for new features, bug fixes, or code maintenance (see Mastercoin Bounties). Some coins may not be premined, but may include a tax to stabilize the value of the coin (see Globecoin).


Exchange Link – This link will take you directly to the trade page on Cryptsy. Keep in mind there are other exchanges that could be trading your coin for more or less than the value listed at Cryptsy.


Special Feature – If the coin doesn’t have a feature that makes it unique, I’ve noted where it’s cloned from. Otherwise, the unique characteristic or minor modification is noted.




You may be snickering at BBQCoin or BitBar, which sound like they could be sold in a vending machine, but these are digital coins that have some market driving their value up or down.


Volume (as of 12/18/2013):


- The range of market values for these altcoins trading for Bitcoins goes from 1.11 to 555 BTC.


- The range of market values for these altcoins trading for Litecoins goes from 15.9 to 2238 LTC.


- The range of market values for these altcoins trading for Primecoins goes from 289 to 9511 XPM.


What makes any of these “coins” valuable?


What gives a cryptocoin value depends on the time you wish to spend mining and investing in the coin. If you are in it for the short term, the coin has to function as is, be mineable, and trade on an exchange.


Some exchanges that trade altcoins are:


- Cryptsy.com


- BTER.com


- Coinex.com


- BTC-e.com


I recommend using cryptocoin charts to see all altcoin charts at once.


Coinex is a smaller exchange, but has a mining pool built in where you can point your miner to the most profitable coins. This site also gets around a Cryptsy wallet restriction that doesn’t allow its wallets to receive mined coins.  


Cryptsy has the advantage of trading a large percentage of the altcoins in existence. If you have a cryptocoin, it most likely can be traded at Cryptsy.com.


BTC-e has the added feature of being able to exchange between fiat currencies. Hopping from BTC to USD is just as easy has exchanging from USD to Euro.


For long-term use, the altcoin should have a respectable group of developers willing and able to fix bugs. Problems come up and someone who is skilled needs to be around to create solutions and have enough developers in the community to peer review any proposed fixes. Additionally, the community around the altcoin will be developing block explorer’s, gaming sites, faucets, and plug-ins to help the coin be used on the internet in a variety of places. A strong development team can also respond to any threats to the cryptocoin from outside the community.


How can these coins be mined?


Pool Mining


Keep in mind, all coins have clients associated with them, and mining any cryptocoin devoid of a skilled group of developers guarding the source code leaves miners vulnerable to installing viruses or malware. There is no one watching over any group of altcoins, and each altcoin you choose to mine has this risk. Always proceed with caution. It is generally recommend you build each client yourself from the source code to ensure no one has added any harmful files to the executable listed on the announcement page.


For starters, I would recommend a p2pool. It only requires your altcoin address and reduces the risk of having to create new accounts for each coin you use. There are pools mentioned on the announcement pages in the table I’ve created for this post.


A pool website I’ve used is p2pool.org. If you go to this site and scroll down a bit you’ll see the url & port, cryptocoin address, and password needed to start mining.


There are currently 45 altcoins that can be mined from p2pool.org, but there are other p2pools available if you navigate the announcement page of a particular coin. Unlike other mining pools, you don’t need to submit an email or password. You just plug in the values and go. The pool fee is 2% and payments are based on the last number of shares submitted (PPLNS).


Clicking on the Cgminer settings button reveals how to start mining using cgminer software.


Solomining


Solo mining gives you the honor of finding new blocks on your own and getting the full reward. This is easier done with low difficulty coins, so make sure to open up the console for the coin’s client and type getdifficulty to see what the current difficulty is. In general, learning the commands available from the console can be a useful tool with coins that are still in early development.


To solomine, make sure to follow the instructions listed on the announcement page.




This article is part of a series focused on altcoins. If you have any questions about these articles or have any general thoughts about altcoins, please comment below.


If there is any information that’s missing or incorrect that you can assist with, please comment and include a link to your source.




Notes


1) I will be adding more exchanges soon.


 


The post An Overview of the Altcoin Market appeared first on Bitcoin Magazine.




Bitcoin Magazine







An Overview of the Altcoin Marketplace

Coin Name



Announcement Page



Total Coins



Child Of



Premined?



Exchange Link 1



Special Feature



AndroidTokens (ADT)



ANN


source



66 Billion



Litecoin



Yes, 1.32 Billion (2%)



Cryptsy LTC


Cryptsy XPM



Scrypt


30 second blocks


Starting Block reward = 524288 ADT



AlphaCoin (ALF)



ANN


source



210 million



Litecoin



Not sure



Crypsy



Scrypt


4 confirmations per transaction



AmericanCoin (AMC)



ANN


source



168 million



Litecoin



Not sure



Cryptsy



Scrypt


Optimized for CPU



AnonCoin (ANC)



ANN


source



4.2 million



Bitcoin
Litecoin
Primecoin
Megacoin



Yes, used for faucet



Cryptsy



Scrypt


Supports i2p darknet


Allows for choosing which specific coins to send.



AsicCoin (ASC)



ANN


source



675 million



Bitcoin



No



Cryptsy



SHA256
4 confirmations per transaction


1 coin per block maintenance fee.


3 sets of random bonus blocks



BBQCoin (BQC)



ANN


source



2 billion coins in 300 years



Litecoin



No



Cryptsy



Scrypt


1 block per minute



BitBar (BTB)



ANN


source



Not sure



RareCoin


FairNova



No



Cryptsy



Scrypt



ByteCoin (BTE)



ANN


source



21 million



Bitcoin



No



Cryptsy



SHA256


Relaunched.


Very similar to Bitcoin.



BitGem (BTG)



ANN


source



Not sure, 3 BTGs per block



Novacoin


Litecoin


PPCoin



No



Cryptsy



Scrypt,Coins attributes map to real world gem qualities.



BottleCaps (CAP)



ANN


source



47.4336 million



Novacoin



Yes



Cryptsy



Scrypt



CryptoBuck (BUK)



ANN


source



10 million



Litecoin



Not sure



Crypsy



Scrypt


TOR services


First 300 blocks setup to prevent instamine.



CryptogenicBullion (CGB)



ANN


source



1 million with a .5% annual inflation



Novacoin



Yes, 9400 coins ( .94%)



Cryptsy BTC


Cryptsy


LTC



Scrypt


5 confirmations


60 second block time



CopperLark (CLR)



ANN


source



27.2 million



Bitcoin



Yes



Cryptsy



Cpu only, hashes with SHA-3


Noted as a “massively premined coin”



Cosmocoin (CMC)



ANN


source



100 million



Novacoin



No



Cryptsy



Scrypt


No fees


Transaction comments



CHNCoin (CNC)



ANN


source



462.5 million



Litecoin



No



Cryptsy BTC


Cryptsy LTC



60 second blocks, 5040 blocks to retarget difficulty.



ColossusCoin (COL)



ANN


source



550 billion



Infinitecoin



No



Cryptsy LTC


Cryptsy XPM



Proof of Stake (250 billion possible coins)



CopperBars (CPR)



ANN


source



512 million




No



Crypsty



Scrypt Jane


Intended for CPU mining.


16 second blocks.



CraftCoin (CRC)



ANN 1
ANN 2


source



100 million



Litecoin



Yes, 1000 Blocks or 10k CraftCoins.



Cryptsy



Scrypt, Designed for Minecraft, Can be used in-game.



CasinoCoin (CSC)



ANN


source



336 million



Litecoin



No



Crypsty



Early superblocks



Doubloons (DBL)



ANN


source



8 million coins or 5 years, whichever is first.



Litecoin



Yes, 1800 coins



Cryptsy



6.77 coins per block like 6.77 gms of gold in a real doubloon.



DigitalCoin (DGC)



ANN


source



200 million



Litecoin



Not sure



Cryptsy BTC


Cryptsy
LTC



Block Time is 20 seconds


5 confirmations per transaction.



DevCoin (DVC)



Main Thread


source



21 billion



Bitcoin



No



Cryptsy LTC


Cryptsy


XPM



90% mined goes to devcoin foundation,


10% goes to miners.


Merge Mined with Bitcoins.



ElaCoin (ELC)



ANN


source



Not sure



Litecoin



Not sure



Cryptsy



2 minute block times


Dynamic block rewards


Bitcointalk lists the coin as dead



ElephantCoin (ELP)



ANN


source



340 million



Litecoin



Yes 1.36 million (.4%)



Cryptsy



Random block rewards


20 second block time



Emerald (EMD)



ANN


source



31.499 million



Litecoin



Yes



Cryptsy



Very scarce.


20 second block times



EZCoin (EZC)



ANN


source



84 million



Litecoin



No



Cryptsy



1 minute block target



FlorinCoin (FLO)



ANN


source



160 million



Litecoin



No



Cryptsy



Allows a 140 character comment for each transaction.



FreiCoin (FRC)



ANN


source



100 million



Not sure



Not sure



Cryptsy



Demurrage fees on stagnant hoarded money.



Franko (FRK)



ANN


source



11.22 million



Litecoin



No



Cryptsy



30 second block retargets. .25 block reward.



FastCoin (FST)



ANN


source



165.888 million



Litecoin



No



Crytsy BTC


Cryptsy LTC



12 sec blocks



FeatherCoin (FTC)



ANN


source



336 million



Litecoin



No



Cryptsy



Block target is 2.5 minutes


4x more coins than Litecoin



GrandCoin (GDC)



ANN


source



1.42 billion



Litecoin



No



Cryptsy



45 second block time, 1000 coins per block.



GlobalCoin (GLC)



ANN


source



180 million



Litecoin



No



Cryptsy



40 second block target. Retarget every 600 blocks.



HoboNickels (HBN)



ANN


source



120 million



Novacoin



No



Cryptsy



2% Proof of Stake



InfiniteCoin (IFC)



ANN


source



90.6 billion



Litecoin



No



Cryptsy LTC


Cryptsy
XPM



High block reward initially that drops exponentially.



IXCoin (IXC)



ANN


source



21 million



Bitcoin



Not sure.



Cryptsy



Supposed to be fully mined by 2013.
ixcoin.org is down.



JunkCoin (JKC)



ANN 1
ANN 2


source



107 million



Litecoin



Yes, 1 million coins.



Cryptsy



Scrypt


1% chance of mining a triple reward block (100 coins).


.01% chance of mining a quadruple reward block (1000 coins)


currently has a low amount of nodes.


Premined coins are claimed to be used for bounties.



KrugerCoin (KGC)



ANN 1
ANN 2


source



about 265 million



Litecoin



Not sure



Cryptsy



Scrypt


15 second block time, difficulty retarget 8.4 hours, 4 confirmations per transaction.


See bitcoin talk for the latest


nodes.



Lucky7Coin (LK7)



ANN


source



500 million



PPCoin
Novacoin



No



Cryptsy



Scrypt


Hash with seven or eight 7’s get 777 coins per block.


See announcement for reward structure.


5% interest paid every 2 weeks.


Difficulty retargets every block



LuckyCoin (LKY)



ANN


source



200 million



Junkcoin



No



Cryptsy



Scrypt


See the announcement for the random block reward structure and the client’s latest version number.



LiteCoin (LTC)



ANN


source



84 million



Bitcoin



Yes, Genesis, and the first two blocks (150 LTC)



Cryptsy



First scrypt coin. POW validation. As of now, can only be  GPU and CPU mined.



MegaCoin (MEC)



ANN


source



42 million



Litecoin



Not sure



Cryptsy BTC


Cryptsy


LTC



Scrypt


2.5 million, difficulty retarget every 22.5 minutes.



MemeCoin (MEM)



ANN


source



200 million



Litecoin



Yes



Cryptsy



Scrypt


Users wanted more nodes.



MinCoin (MNC)



ANN


source



10 million



Litecoin



No



Cryptsy



Scrypt


1 minute block targets



MasterCoin (MST)



ANN


source



about 180 million



Litecoin



Yes



Cryptsy



Not to be confused with the other Mastercoin.


Users complain it isn’t unique enough.



Nibble (NBL)



ANN


source



21 million



Litecoin



No



Cryptsy



Scrypt


balanced to prevent unfair rewards to insta-mining and premining.



NeoCoin (NEC)



ANN


source



80 million



Novacoin
Florin



No



Crypsty



Scrypt


QR code support


Exponential moving average difficulty and reward adjustment



NetCoin (NET)



ANN


source



about 320 million



Litecoin



Not sure



Cryptsy LTC


Cryptsy XPM



Scrypt


Traded for Primecoin



NameCoin (NMC)



ANN


source



21 million



Merged Mined with Bitcoin



Not sure



Cryptsy



Allows you to securely register and transfer arbitrary domain names (.bit)


Attach values to the names


Transact in Namecoins



NoirBits (NRB)



ANN


source



50 million



Litecoin



No



Cryptsy



Scrypt


Reversible transactions.


2 minute block time


Community funded bounties



NovaCoin (NVC)



ANN


source



2 billion



PPCoin
Litecoin



Yes



Cryptsy



Scrypt



OrbitCoin (ORB)



ANN


source



31 million



POW / POS based coin



Yes (66%)



Cryptsy



“The most premined coin since MMMcoin”


Autodetects new nodes


Transaction messages



PhilosopherStone (PHS)



ANN


source



2 billion POS (8 million POW)



Novacoin
PPCoin
DiamondCoin



No



Cryptsy



3.44% interest based on POS.


Random block generation.


Supports transaction messages



PPCoin (PPC)



ANN


source



82 million



Bitcoin



No



Cryptsy BTC


Cryptsy


LTC



Hybrid POW and POS


Difficulty adjustment with every block.



Protoshares (PTS)



ANN


source



2 million, 1% inflation after 2 years.



Bitcoin



No



Cryptsy



CPU only


“As well as being an altcoin, ProtoShares is a way to own BitShares before they are launched. When BitShares is launched, its genesis block will award one BitShare for every ProtoShare held. “


Created by Invictus Innovations



PayCoin (PYC)



ANN


source



30 million



Novacoin
Florincoin
CosmosCoin



No



Cryptsy



3 coins per block


60 second block time


5 confirmations per transaction



Quark (QRK)



ANN


source


Bitcoin Magazine



248 million



Sifcoin



No, Designed to be mined in the first 6 months.



Cryptsy BTC


Cryptsy LTC



CPU only, 30 second block generation, mix of hashing functions used.



RedCoin (RED)



ANN


source



329 million



Litecoin



Yes, 1 million



Cryptsy



Transaction messaging



StableCoin (SBC)



ANN


source



250 million



Litecoin



Yes, 1.25 million



Cryptsy BTC


Cryptsy


LTC



40 second block time


Plans to build a coin mixing service



Spots (SPT)



ANN


source



Not sure



SmallChange



No



Cryptsy



.01% chance for a 205x block reward.



SecureCoin (SRC)



ANN


source



21 million



BItcoin


YaCoin


SifCoin


DigitalCoin



No



Cryptsy



Complex system of hashing functions


CPU only



SexCoin (SXC)



ANN


source



250 million



Litecoin



Yes, 200 coins



Cryptsy



Chance for a x3 or x50 block.


100 coins per block halve every 600k blocks



TagCoin (TAG)



ANN


source



100 million



Litecoin


PPCoin



Yes, 9000 coins



Cryptsy



Funded 5 million usd by Veresoft


4 minute blocks



TekCoin (TEK)



ANN


source



100 million



PPCoin



No



Cryptsy



Transaction comments


1 coin per block


1 minute block



Tickets (TIX)



ANN


source



100 billion



CopperBars



No



Cryptsy LTC


Cryptsy XPM



CPU only


First coin traded on the XPM market


Random block rewards



TerraCoin (TRC)



ANN


source



42 million



Bitcoin



No



Cryptsy



Had a 51% attack.



WorldCoin (WDC)



ANN


source



265.42 million



Litecoin



No



Cryptsy



30 second blocks


2 confirmations per transaction



JouleCoin (XJO)



ANN


source



45 million



Bitcoin



No



Cryptsy



Transaction comments


45 second blocks


Block Reward: 16



XenCoin (XNC



ANN


source



2.1 billion coins



Litecoin



Yes, 105 million (5%)



Cryptsy



20 second blocks


6 confirmations per transaction



PrimeCoin (XPM)



ANN


source


Bitcoin Magazine



999/sqrt (difficulty)



Novacoin


Bitbar


Yacoin


Bitgem


Bottlecaps


CryptogenicBullion



No



Cryptsy BTC


Cryptsy LTC



CPU only


Assists in high digit prime discovery aiding the field of mathematics.


Proof of Work


1 minute blocks



YaCoin (YAC)



ANN


ANN


ANN (new fork)


source



2 billion



Novacoin



No



Cryptsy BTC


Cryptsy
LTC



CPU only for now.


Proof of Work


Supports coin control, which lets a user see transaction fees in advance, maximize proof of stake rewards,  provide control of Coin Age, and more.



ZetaCoin (ZET)



ANN 1
ANN 2


source



160 million + inflation of 1 million per year afterwards.



Bitcoin



No



Cryptsy BTC


Cryptsy


LTC



30 second blocks.


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