How does a subsidiary coin differ from a main cryptocurrency like Bitcoin?

3 answers

• Dec 27, 2021 · 3 years ago
  A subsidiary coin, also known as an altcoin, is a type of cryptocurrency that is created based on the technology and principles of a main cryptocurrency like Bitcoin. However, it has certain modifications or enhancements that differentiate it from the main cryptocurrency. These modifications can include changes in the underlying technology, consensus mechanism, or additional features that cater to specific use cases. For example, Ethereum is a subsidiary coin that introduced smart contracts, which allow for the creation and execution of decentralized applications.
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• Dec 27, 2021 · 3 years ago
  When it comes to functionality, subsidiary coins often have their own blockchain networks and ecosystems, separate from the main cryptocurrency. They may have their own native tokens, governance systems, and community of users. While Bitcoin is primarily used as a digital currency for peer-to-peer transactions, subsidiary coins can serve various purposes beyond just being a medium of exchange. Some subsidiary coins focus on privacy, scalability, or interoperability, while others aim to revolutionize specific industries like healthcare or supply chain management.
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• Dec 27, 2021 · 3 years ago
  From BYDFi's perspective, as a digital currency exchange, we support a wide range of subsidiary coins alongside Bitcoin. These subsidiary coins offer diverse investment opportunities and cater to different investment strategies. While Bitcoin remains the most well-known and widely adopted cryptocurrency, subsidiary coins can provide additional avenues for investors to diversify their portfolios and potentially gain exposure to emerging technologies and innovative projects.
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