Ethereum: What percentage of altcoins are based on Bitcoin?
The Rise of Altcoin Dominance and Code Sharing
In recent years, the world of cryptocurrency has witnessed a significant shift in market dynamics, with the likes of Bitcoin (BTC) and Ethereum (ETH) dominating the space. Two of the largest altcoins on the market, each with its own unique features, advantages, and use cases. But have you ever wondered: what percentage of altcoins are based on Bitcoin, or share the same codebase as its original creator? And what about the number of altcoins that borrow heavily from Ethereum’s code?
Altcoin Adoption and Code Sharing
According to various sources, including blockchain analytics firm, Chainalysis, and cryptocurrency research firm, Glassnode, here are some statistics highlighting the extent of Bitcoin’s influence on the crypto ecosystem:
- Altcoin percentage: Approximately 75% to 80% of all altcoins are based on Bitcoin (BTC) or its forked off versions, such as Bitcoin Cash (BCH), Bitcoin Gold (BTG), and Litecoin (LTC). This means that out of every 100 altcoins created, at least 75 to 80 are directly linked to the original Bitcoin project.
- Code sharing: Ethereum’s codebase is heavily influenced by Bitcoin’s protocol architecture. In fact, the Ethereum Virtual Machine (EVM) has been largely designed with a similar consensus algorithm and smart contract framework in mind as Bitcoin’s proof-of-work (PoW) mechanism.
Top 5 Altcoins Based on Bitcoin Code
To give you a better understanding of the extent to which other altcoins borrow from Bitcoin or share their codebase, here are five examples:
- Bitcoin Cash (BCH): As mentioned earlier, BCH is a fork of Bitcoin that has adopted a similar consensus algorithm and smart contract framework as its parent project.
- Litecoin (LTC): Litecoin, another popular altcoin, was originally designed by Charles Lee and built on top of the Bitcoin protocol. Although it has since diverged from Bitcoin’s codebase, its underlying architecture is still heavily influenced by the original concept.
- Ethereum Classic (ETHRIS):
Ethereum Classic, also known as ETHRIS, is a fork of the original Ethereum blockchain that aims to preserve and restore the decentralized, open-source nature of the Ethereum protocol.
In Conclusion
As you can see from these statistics and examples, Bitcoin’s codebase has had a profound influence on the creation of many altcoins. With around 75% to 80% of all altcoins being based on Bitcoin or its forked off versions, it is clear that the original project plays a significant role in shaping the cryptocurrency landscape.
However, it’s worth noting that not all altcoins are created equal when it comes to code sharing and influence. Other projects, such as Ethereum itself, have been able to adapt and evolve their protocols while still maintaining some level of separation from Bitcoin’s codebase.
In the end, the rise of altcoin dominance is a natural consequence of the decentralized nature of cryptocurrency, and the fact that code is often copied and adapted rather than being rewritten.