What are altcoins?

Altcoins are defined as any cryptocurrencies that serve as alternatives to Bitcoin. This terminology encompasses a wide range of digital currencies that were developed after Bitcoin, which was the first cryptocurrency to introduce the concept of decentralized digital money. The primary characteristic that defines altcoins is their intention to improve upon or provide features that differ from Bitcoin, such as enhanced transaction speeds, different consensus algorithms, or unique applications in various sectors.

The essence of the term "altcoin" reflects the innovation that these cryptocurrencies bring to the broader blockchain ecosystem, indicating their function not just as alternatives but also as advancements upon the foundational technology established by Bitcoin.