The rise of altcoin domination and code sharing
In recent years, the cryptocurrency world has experienced a significant change in market dynamics, with Bitcoin (BTC) and Ethereum (ETH) dominating space. Two of the largest altcoins on the market, each with its own features, advantages and unique use cases. But have you ever wondered: what percentage of altcoins are based on Bitcoin or share the same code base as its original creator? And what would you say about the number of altcoins that greatly borrow from the Ethereum code?
Altcoin adoption and code sharing
According to various sources, including the blockchain analysis company, Chainalysis and the cryptocurrency research office, Glassnode, here are some statistics highlighting the extent of Bitcoin’s influence on the cryptographic ecosystem:
- Altcoin percentage: About 75% to 80% of all altcoins are based on Bitcoin (BTC) or its fork versions, such as Bitcoin Cash (BCH), Bitcoin Gold (BTG) and Litecoin ( LTC). This means that out of 100 altcoins created, at least 75 to 80 are directly linked to the original Bitcoin project.
- Code sharing: The Ethereum code base is strongly influenced by the architecture of the Bitcoin protocol. In fact, the Ethereum virtual machine (EVM) was largely designed with a similar consensus algorithm and an intelligent contract framework in mind as a work proof mechanism (POW) of Bitcoin.
Top 5 Altcoins based on Bitcoin code
To give you a better understanding of the measure to which other altcoins take Bitcoin or share their code base, here are five examples:
- Bitcoin Cash (BCH):
As mentioned above, BCH is a bitcoin fork that adopted a similar consensus algorithm and an intelligent contract framework as a parent project.
- Litecoin (LTC): Litecoin, another popular Altcoin, was initially designed by Charles Lee and built on the Bitcoin protocol. Although it has diverged from the Bitcoin code base, its underlying architecture is always strongly influenced by the original concept.
- Ethereum Classic (Ethris): Ethereum Classic, also known as ethris, is an original Ethereum blockchain for preserving and restoring the decentralized open-source nature of the Ethereum protocol.
In conclusion
As you can see from these statistics and examples, the Bitcoin code base had a deep influence on the creation of many altcoins. With around 75% to 80% of all Altcoins based on Bitcoin or its fork versions, it is clear that the original project plays an important role in the formation of the cryptocurrency landscape.
However, it should be noted that all altcoins are not created equal with regard to the sharing and influence of code. Other projects, such as Ethereum himself, were able to adapt and develop their protocols while maintaining a certain level of separation from the Bitcoin code base.
In the end, the rise in Altcoin domination is a natural consequence of the decentralized nature of the cryptocurrency, and the fact that the code is often copied and adapted rather than being rewritten.
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