Altcoins Talks - Cryptocurrency Forum
Archive => Sorting Box => Topic started by: fire-man on June 22, 2018, 05:18:23 AM
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What is the cryptocurrency token and what is its essence?
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What is the cryptocurrency token and what is its essence?
I'm not sure if you mean a specific token or just cryptocurrency in general, Source: Wikipedia A cryptocurrency (or crypto currency) is digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrency is a kind of digital currency, virtual currency or alternative currency. Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems.The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.
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Do you mean ERC-20 tokens that are given free on airdrops and are usually worthless?
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You need to distinguish between coins and tokens. The coin is primarily a means of payment, an electronic analog of ordinary money. To create a token, the same crypto technology is used, but it is used for the purposes of the project that issued the token. A token can be an analogue of a stock, a bond or a jetton for the internal purposes of the project.
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Crypto currency is a digital money cmwhich is purposely created to separate this system from the government which is giving everyone an advantage to earn their profit without any third party asking some of your profit. Giving a better transaction with full of transparency.