Difference Between Altcoins and Tokens
Assalamu Alaikum
While we all know more or less about cryptocurrency and "crypto-speak" is confusing, it's likely that both the technology and the term are still evolving, and definitions continue to evolve over time. Even those who talk about crypto may unwittingly confuse the terms because many still don't know the standard definitions.
The most basic terms for identifying cryptocurrencies are to know about coins, altcoins and tokens. Know the difference between them.
What is altcoin?
An altcoin is a coin that acts as an alternative. We know that many things in our daily life have alternatives. There are also Bitcoin Arrow alternatives. Alternative coins to Bitcoin are Altcoins. Altcoins are therefore considered alternative currencies.An altcoin is a cryptocurrency that is not Bitcoin. Each coin has its own smart contract and blockchain network. All the transactions and other functions of the coin are done using it. The control of a coin is not in the hands of a single person.
Coins are less risky
What is Token:
A token is a cryptocurrency that runs on the blockchain of another cryptocurrency. An example of a cryptocurrency token is the USD Coin (USDC). The token has no smart contract or blockchain network of its own. Tokens perform transactions and other tasks using the underlying coin's blockchain network. Control of the token rests entirely with the developer of the token.
Today's discussion ends here. I hope you find it interesting and able to understand. Share your thoughts on today's topic. Wishes and blessings to all.
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Thanks for sharing this kind of post, you explained very easily about difference between altcoins and tokens.
Thanks for your comment.
Most times it actually looks like altcoins seems to be more risky much more than the other types of coins or tokens that we are familiar with
https://twitter.com/MahmudulK59125/status/1788155592328298865?t=g_KthOSfAK7AWdZKOh_RvQ&s=19
Many of us don't know the difference between coins and tokens and think both are the same. Although there are many differences between them and thanks for writing about it.
Thanks for your nice feedback.
You have wonderfully explained the concept of token and altcoin so well, indeed token is a one on another crypto blockchain while altcoin is an alternative to Bitcoin and most do have their own blockchain. Nice content.
Thanks for your feedback
Altcoin and token I used to think of both as the same thing. Reading your post dispelled this misconception of mine. Thanks for sharing such a helpful post.