What is a cryptocurrency token?
Hello All Steemit Lovers! "Assalamualaikum"
Hope everybody is doing well physically and mentally. Yesterday I discussed something about cryptocurrency coins in my post. Click here to see yesterday's post. Today I will discuss with you about cryptocurrency tokens. I hope you like my discussion.
Since we work online, we have often heard of cryptocurrency tokens. But the biggest problem is when we make a mistake in distinguishing between coins and tokens. Many times we forget to call cryptocurrency coins as tokens and many times we call cryptocurrency tokens as coins. So today I am going to talk about cryptocurrency tokens so that we can understand which are coins and which are tokens.
Yesterday we learned about coins that all cryptocurrencies have their own blockchain and their own wallet through which transactions can be completed. They are called coins. Now if we go the opposite way. This means that all cryptocurrencies do not have their own blockchain or wallet. All of which can be done through transactions through Coin's blockchain network. Those are the tokens. We all know that cryptocurrencies are transacted through our own blockchain network or smart contact. However, a new type of cryptocurrency can be created using this blockchain network. And these new cryptocurrencies have to rely on the blockchain network of that coin to do all the work, including transactions. In fact, these new cryptocurrencies do not require their own blockchain network for transactions. These are known as tokens.
As many of us have heard of NFT (non fungible token) tokens. NFT is the best example of Token. They do not have their own wallet or blockchain. There are many more such tokens. These basically complete the transaction using the original wallet network and address. Basically these types of cryptocurrencies are known as tokens. Also our Splinterland card is a token when we play the Splinterland game.
Much Love And Best Wishes To All
I am Md. Kawsar Hasan. I am a Bangladeshi. I feel very comfortable to introduce myself as a Bangladeshi. An assistant teacher by profession. A writer intoxicated. So I feel very comfortable writing content on different topics. It’s great to know the unknown and learn something new. Love to travel.
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It has cleared my concept about cryptocurrency... Thank a lot for shaing
Thanks
You are writing well about the basic features of blockchain and cryptocurrency that is really good. Gradually try to focus on other issues which is covering in the topics of the community. Thank you and best wish for you.
Thank you brother