The exact definition of “altcoin” varies between people. Some only call less popular coins “altcoins”, while others refer to anything that isn't Bitcoin as an "altcoin".

Аltcoins are used to power blockchain projects, make payments, and more. 

However, the true extent of altcoin capabilities reaches much further.

Short for “alternative coins," altcoin projects and their blockchains are designed to address inefficiencies in early blockchain technology. 

They introduce faster, more flexible transactions, interoperability, better safety options, and more.

The Bitcoin blockchain can process a limited number of transactions per second, which leads to slower speeds and higher costs. 

Polygon (MATIC), for example, provides a solution to increase transaction throughput.

Due to its isolated nature, the Bitcoin blockchain encounters challenges in data exchange and compatibility.

Polkadot (DOT), for instance, enables different blockchains to communicate and interact with one another.

As new altcoins emerge, careful consideration of their utility and market demand is imperative before making any decisions.