The announcement of Bitcoin’s sidechaining feature that will likely soon be active is very good news for Bitcoin, but it might be even better news for altcoins.
Sidechains will likely be just the first of many useful additions to Bitcoin and clearly demonstrates it’s programmability, allowing it to be modified without disrupting the network. Since any cryptocurrency can be a Bitcoin sidechain I would expect to see several current and future altcoins operating as Bitcoin sidechains. Here is a quick breakdown of some newer coins that might find their way to a Bitcoin sidechain.
UCICOIN, which stands for universal crowd-funding investments, was created by a company and is backed by assets of the company. UCICOINS can be exchanged for shares of two companies, Hydroinfra technologies and Diamond Circle. The exchange rate for shares is based on the coin’s value, so the price of the coin should correlate with the value of the shares for those companies. The UCICOIN homepage is currently hosting a crowdsale, however there are few technical details on the site.
Exclusive Coin uses X11 proof of work and offers a low but reasonable 2% proof of stake interest. With only just under 6 million of the 36.5 million coins available, there are still plenty to mine. The goal of the Exclusive Coin team seems to be to host a discount marketplace where people can buy and sell things at a lower than retail price, using Exclusive Coin.
If you know how to program, the coin you should be looking at is Viacoin. Viacoin allows for the creation of applications on top of the blockchain, in a way that is similar to email being built on the internet protocol. Viacoin is a scrypt proof of work coin with 92 million total coins, that boasts that it is 25 times faster than Bitcoin.
In addition to their rather competitively priced Hashlet cloud mining service, GAWMiners has also created their cryptocurrency called HashCoin. HashCoin uses the SHA-256 algorithm and achieves complex hashing through 11 different hashing functions. HashCoin developers use the term “built for miners, by miners” on the home page of their site. HashCoin offers 44 million total coins and uses a new blockchain technique called hybrid flex that compresses and archives old transaction data in order to maintain faster transactions and a less bloated blockchain. The site also says that HashCoin is backed by USD fiat reserve and shows a picture of what appears to be a HashCoin “debit” card.
By far the most interesting concept for a cryptocurrency that I have read about is Genecoin. While it doesn’t appear to ready yet, it certainly seems like someone is working on a cryptocurrency that stores human DNA data on its blockchain. The project appears to be in a pretty early phase, however, anyone interested in learning more can sign up for email updates on the website at genecoin.me.
This diverse of new cryptocurrencies shows that no matter what your interests may be, there is or will likely soon be a cryptocurrency that allows to transfer value and secure space storage for data on the blockchain.