Mastering Bitcoin

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Mastering Bitcoin ( mastering-bitcoin )

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CHAPTER 9 Alternative Chains, Currencies, and Applications Bitcoin was the result of twenty years of research in distributed systems and currencies and brought a revolutionary new technology into the space: the de-centralized consen‐ sus mechanism based on Proof-of-Work. This invention at the heart of bitcoin has ushered a wave of innovation in currencies, financial services, economics, distributed systems, voting systems, corporate governance, and contracts. In this chapter we’ll examine the many offshoots of the bitcoin and blockchain inven‐ tions, the alternative chains, currencies, and applications built since the introduction of this technology in 2009. Mostly, we will look at alt-coins, which are digital currencies implemented using the same design pattern as bitcoin, but with a completely separate blockchain and network. For every alt-coin mentioned in this chapter, 50 or more will go unmentioned, eliciting howls of anger from their creators and fans. The purpose of this chapter is not to evaluate or qualify alt-coins, or to mention the most “significant” ones based on some subjective assessment. Instead, we will highlight a few examples that show the breadth and variety of the ecosystem, noting the first-of-a-kind for each innovation or significant differen‐ tiation. Some of the most interesting examples of alt-coins are in fact complete failures from a monetary perspective. That perhaps makes them even more interesting for study and highlights the fact that this chapter is not to be used as an investment guide. With new coins introduced every day, it would be impossible not to miss some important coin, perhaps the one that changes history. The rate of innovation is what makes this space so exciting and guarantees this chapter will be incomplete and out-of-date as soon as it is published. 219

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