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In the beginning, there was only Bitcoin, created by Satoshi Nakamoto.
But because of the open source nature of Bitcoin’s source code, this didn’t last long.
Source code is the code that programmers can modify to change how a software program or “app” works.
Open source software is software whose source code can be reviewed, used, copied, modified, and improved by anyone.
If you have access to a software program’s source code, you can make changes such as fixing parts that don’t work well, improving parts so they work better, or adding new features.
You can think of open source software like a recipe that is public so that everyone can see it and copy it.
The KFC Example
For example, if you’ve ever eaten at KFC, you know how delicious their fried chicken is using Colonel Sanders’ original recipe with 11 herbs and spices. 😋
But the recipe is a secret. It’s stored in a vault (cold storage) at KFC headquarters.
The KFC chicken’s source code (recipe) is considered “closed source” or “proprietary.”
Because we don’t know the exact recipe, if you wanted to make chicken similar to KFC yourself, you’d have to create your recipe from scratch, probably with lots of trial and error.
You’d end up spending a lot of time, instead of spending a lot of time eating… fried chicken.
And most likely, instead of KFC, you’d end up with GFC — Gross Fried Chicken. 🤣
Now… imagine if Colonel Sanders had decided to make that recipe public and allow anyone to use it. That would be open source.
And that’s exactly what Satoshi Nakamoto did!
He decided to share his “recipe” (source code) with the public and publish it online as open source software.
Without having to do reverse engineering of Bitcoin’s software and trying to figure out how to create a cryptocurrency from scratch, other cryptocurrencies started popping up quickly.
These cryptocurrencies are now called “altcoins.”
What are Altcoins?
The word “altcoin” comes from two words: “alt” and “coin.”
The word “alt” is short for alternative, and “coin” means coin.
So the word “altcoin” comes from the idea that all other cryptocurrencies are considered “alternative coins” to Bitcoin (BTC), which was the first cryptocurrency.
Altcoins are considered an alternative to Bitcoin because they are seen as attempts to replace Bitcoin or improve it.
One benefit of open source software like Bitcoin is that anyone in the world can take the original codebase and try to improve it or add functionality to the software.
For credit where it’s due, the first altcoin was Namecoin (NMC).
Namecoin (NMC)
The goal of Namecoin was to provide a decentralized domain name service (DNS) system.
Instead of websites having domains ending in “.com” or “.net”, which were under the control of ICANN (the main governing body for domain names), Namecoin created the “.bit” domain which was independent from ICANN and couldn’t be censored or shut down.
For example, instead of using “babypips.com” as our website URL, I could register “babypips.bit” by buying it with NMC and use it as our URL.
Unfortunately, the barrier to knowing how to access “.bit” websites was very high.
Namecoin was very difficult to use, which limited its adoption. 😔
Although Namecoin was the first altcoin, it definitely wasn’t the last.
Within a few years after Bitcoin’s source code was made public, hundreds of altcoins were born.
Then thousands! 😱
Many developers just copied or made small changes to Bitcoin’s software code and then launched their own cryptocurrencies.
Unsurprisingly, most of them couldn’t get user adoption, and after a few weeks or months they were abandoned and disappeared.
These altcoins ended up being called “shitcoins”, because literally they ended up being pieces of sh*t with no value.
But not all altcoins were complete crap.
Some were able to make meaningful adjustments or offer features different enough from Bitcoin that they were able to attract and grow their own community of users.
Here are examples of early altcoins that still exist today:
Litecoin (LTC)
In 2011, Charlie Lee, a developer at Google, started experimenting with Bitcoin’s source code.
He decided to create a version of Bitcoin that was “more accessible”, and called it Litecoin.
Although Litecoin is based on Bitcoin’s source code, it has several technical differences, such as:
- Faster transaction confirmation time: 2.5 minutes vs 10 minutes.
- Different hash function for mining: Scrypt vs SHA-256.
- Larger maximum supply: 84 million vs 21 million.
Charlie Lee’s goal for Litecoin wasn’t to replace Bitcoin, but for Litecoin to be “silver to Bitcoin’s gold.”
Dogecoin (DOGE)
In 2013, Dogecoin was an altcoin created as a “joke”, but it quickly attracted and grew its own online community.
It was inspired by an internet meme known as “Doge”, which was a picture of a Shiba Inu dog shown with colorful text in Comic Sans font.
Because of its popularity, DOGE, the native currency of Dogecoin, is considered the first meme coin and also the first dog coin.
While Litecoin was built from Bitcoin’s source code, Dogecoin was built from Litecoin’s source code.
(Do you start to see the “benefits” of open source software? Once you create something, anyone can take your work and copy it. Yay.)
Ripple (XRP)
Let’s say you’re from the US and your significant other, a famous Brazilian supermodel or footballer (pick your own), wants to send you money from their bank to your bank.
There are many steps that would need to be completed, and each step often has fees.
And that’s why international bank transfers can take several days and be expensive.
Ripple wanted to change that.
Its founders wanted to create a platform for banks that would enable international cross-border payments to be completed within seconds at low cost.
Ripple is a company that was originally founded in 2012 as Opencoin, then called Ripple Labs, and later dropped the word “Labs.”
The company created the XRP Ledger, their public blockchain, which uses XRP as its native cryptocurrency.
The creators chose the ticker symbol “XRP” from the words “ripple credits” or “ripples”, along with the prefix “X” used for non-national currencies according to the ISO 4217 standard.
Stellar (XLM)
A few years after Ripple was created, one of its co-founders, Jed McCaleb, created Stellar with Joyce Kim.
Although Stellar originally forked from Ripple’s codebase, that code was later completely changed.
Stellar’s goal is largely similar to Ripple’s:
To allow cross-border payments between any two currencies to be sent quickly and at low cost.
However, they differed in approach.
Ripple initially focused more on bank-to-bank transfers, while Stellar from the start focused on person-to-person transfers, especially for the “unbanked” — people from developing countries who didn’t have access to financial services.
Money transfers or remittances via the Stellar network are completed near real-time and at very low cost.
A big difference between Stellar and Bitcoin is transaction processing speed.
Stellar can process approximately 3,000 TPS (transactions per second) compared to 5 TPS for Bitcoin.
“Lumens” or XLM (originally known as “stellar”) is the native cryptocurrency of Stellar.
XLM is required to pay the base fee charged by the Stellar network for transactions.
Although Stellar’s initial goal was to increase financial inclusion by reaching people without access to banking worldwide, its priorities have shifted and it now focuses on helping financial firms connect via blockchain technology.
Ethereum (ETH)
You can’t talk about altcoins without mentioning — arguably — the most famous altcoin: Ethereum.
In 2013, Ethereum was conceived with the goal of expanding the capabilities of blockchain technology.
Before Ethereum, most altcoins were basically Bitcoin clones or spinoffs, built for one specific function…
To work as an alternative “currency” outside the traditional financial system.
Basically, it was the digital equivalent of cash that you could send directly from one person to another without a middleman.
For example:
- Bitcoin users can make transactions with BTC.
- Litecoin users can make transactions with LTC.
- Dogecoin users can make transactions with DOGE.
- Ripple users can make transactions with XRP.
- Stellar users can make transactions with XLM.
(And later convert again to your local fiat currency if you wanted.)
Yes, Ethereum can do exactly that using ether (ETH), its native currency, but that’s not its main purpose.
What sets Ethereum apart from Bitcoin and other altcoins at the time is that its blockchain design was more flexible and was built as a software platform.
So instead of just being another “currency”, developers were able to expand Ethereum’s functionality, such as having the ability to build decentralized applications (“dApps”) and even launch their own “tokens.”
Ethereum is so important that we’ll learn about it in more detail later.
But for now, just know that Ethereum is an altcoin.
And it’s one of the largest cryptocurrencies, second only to Bitcoin.
Now that you understand altcoins, let’s learn about some specific “genres” of altcoins.

LEARN QUICKLY - Blockchain Explorer
Have you ever sent crypto and then started to wonder:
“Did this money really arrive, or did it get lost on the way?”
Don’t worry… there’s a “Google” for blockchain that shows you everything LIVE.
Imagine you sent money via M-Pesa.
You get an SMS to verify, right?
In crypto there is no SMS…
But there’s something called a Blockchain Explorer.
👉 This is like Google for crypto
👉 It shows you:
- Where did the money come from
- Who did it go to
- Has it arrived or is it still on the way
In the simplest terms:
Blockchain Explorer = a place to check the truth of crypto transactions.

What Is a Bitcoin ATM Machine?
A Bitcoin ATM (Automated Teller Machine) is a specialized kiosk that allows users to buy and sometimes sell Bitcoin and other cryptocurrencies using cash similar to how a bank ATM handles fiat currency. But unlike a bank ATM, it is not connected to a bank account; instead, it interacts with the Bitcoin blockchain and a cryptocurrency exchange.
⚙️ How Bitcoin ATMs Work Step by Step
1. User Wallet Requirement
To use a Bitcoin ATM you first need a crypto wallet (software or hardware) that can receive Bitcoin.
This wallet has a public receiving address shown as a QR code you scan at the ATM.
2. Insert Cash (or Debit Card)
You insert physical cash (e.g., Kenyan Shillings) into the machine.
The ATM then converts that value into Bitcoin at the current market rate (often with a premium fee).
3. Transaction Execution
The ATM sends the purchased Bitcoin directly to your wallet address through the blockchain.
This transaction is recorded on the blockchain and confirmed by the Bitcoin network.
4. Receipt & Confirmation
You receive a transaction receipt and may also get a confirmation code or SMS depending on the machine.
Many ATMs require identity verification (KYC) for larger amounts to comply with anti-money-laundering rules.
🔄 Buy vs Sell Functionality
One-way ATMs: Only let you buy Bitcoin with cash.
Two-way ATMs: Allow selling Bitcoin for cash too.
This feature isn’t always available and depends on the model and operator.
🧠 Key Technical Characteristics
📊 Blockchain Interaction
Bitcoin ATMs don’t hold your Bitcoin themselves; they initiate transactions on the blockchain which then propagate through the decentralized network.
Funds are transferred peer-to-peer between the ATM provider’s liquidity pool (or an exchange) and your wallet.
🔐 Security & Compliance
Transactions leverage public-key cryptography you control the private key via your wallet; the ATM just facilitates the transfer.
Recent trends are pushing mandatory ID checks (KYC) to meet global regulatory standards on money laundering.
💸 Fees and Costs
Bitcoin ATMs often charge significant fees (premium on top of market price) compared to online exchanges.
Typical costs can vary widely, impacted by liquidity and risk pricing from the ATM operator.
📍 Example: Bitcoin ATM in Nairobi
One of the most reported Bitcoin ATMs in Kenya is installed at Two Rivers Mall in Nairobi, Kenya, specifically in the ground floor public areas near banking ATMs like those of NCBA Bank.
I visited Kenya last week and had a great time to visit the place where Bitcoin ATM machine is located in kenha ,Nairobi at 2 rivers mall
👉 The machine is typically branded “Bankless Bitcoin” and positioned beside traditional ATMs for visibility. It enables users to buy and sell Bitcoin using cash in a high-traffic retail environment.
⚠️ Regulatory Note (Kenya-Specific)
Kenya’s Virtual Assets Service Providers (VASP) Act came into force in late 2025, establishing a licensing regime for crypto services.
However, as of the end of 2025 there were no licensed crypto ATM operators authorized by the Central Bank of Kenya (CBK) or the Capital Markets Authority (CMA). Any operator claiming a license may still be operating in a regulatory grey zone. #bitcoin #btcatmmachine #BTC