Sid Kalla is CTO at fintech firm Acupay, and a freelance journalist specializing in financial technology, bitcoin and cryptocurrencies. He has invested in blockchain projects including bitcoin, MaidSafeCoin, Counterparty and BitShares (See our Editorial Policy).
In this guest feature, Kalla provides an in-depth guide for those considering investing in an initial coin offering or ICO.
Bitcoin was the first cryptocurrency released to the public in January 2009. Since then, there have been thousands of others modeled after it, with varying degrees of similarity to the original concept.
Even early on, the types of ‘altcoins’ (alternate cryptocurrencies) varied significantly from one another. Broadly, the following categories emerged:
- Cryptocurrencies that changed a few technical or economic parameters from bitcoin. Examples include litecoin, which changed the mining algorithm used, total supply, and block times.
- Cryptocurrencies that were built from a different codebase altogether, with some specialized purpose. Examples include NXT, a proof-of-stake coin with functionality that differed from the bitcoin blockchain.
- Meta-protocols on top of bitcoin. Examples include Mastercoin and Counterparty, which extend the use cases of bitcoin by building a layer on top of it, yet still using bitcoin as the underlying protocol.
Alongside the initial developments, a fourth type of crypto token also emerged. This
Read more ... source: CoinDesk
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