Like bitcoin, each altcoin is decentralized and uses blockchain technology. The term altcoin is also used to refer to tokens, including ERC-20 tokens, the most popular token standard that runs on the Ethereum blockchain.
Despite some similarities, each altcoin has its own function. Some popular types of altcoins include mining-based crypto assets; stablecoins or tokens that have the same value as stable assets such as fiat currencies; governance tokens or tokens that represent voting rights in blockchain projects, and so on.
