Main types of cryptocurrencyīitcoin is considered the first cryptocurrency created, and other individual cryptocurrencies are known as " altcoins" (a combo word derived from "alternative coin").
#Ethereum tokens list software
So, while some cryptos might be a bubble that will eventually pop, the decentralized nature of the technology and the broad scope of how it can be applied in the software world are two reasons why there are so many cryptos.
And blockchain technology has usefulness beyond just digital currencies. Surging crypto prices have led many developers to try getting a cut of the action. Bitcoin Cash ( CRYPTO:BCH) was created in 2017 as a result of a Bitcoin fork allowing more transactions to be recorded on a single block of the blockchain.
#Ethereum tokens list code
Sometimes there are " forks" in the software code that change the rules about how a crypto is governed, which can lead to the creation of a new crypto. For example, the Ethereum network could be used to create your own personal digital coins. The source code of one can be used to build another. Part of the reason for the surge is the relative ease with which new cryptocurrencies can be created. For reference, the number of cryptos surpassed 1,000 only four years ago. There are estimated to be more than 10,000 different cryptocurrencies in circulation at the time of this writing, and the figure keeps increasing. Why are there so many types of cryptocurrency?īlockchain technology is open source, meaning any software developer can use the original source code and create something new with it. Ether is an example of a token, which is used to make transactions on the Ethereum ( CRYPTO:ETH) network. There has even been experimentation using NFTs with physical assets, such as real-life art and real estate. They can represent digital art (like with NFTs, or " non-fungible tokens" that certify something as unique). Tokens are created on top of an existing blockchain and can be used as part of a software application (like to grant access to an app, to verify identity, or to track products moving through a supply chain). Tokens, on the other hand, have far more uses than just digital money. Examples of coins include Bitcoin and Litecoin ( CRYPTO:LTC). It can be used to store value and as a means of exchange between two parties doing business with each other. It's important to keep them straight.Ī digital coin is created on its own blockchain and acts in much the same way as traditional money. Although they may sound like interchangeable terms, there is a difference. When discussing cryptos, you may hear the terms "coin" and "token" frequently used. tokensįirst things first: Know the difference between a coin and a token. Image source: The Motley Fool Crypto coins vs.
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