Surely you have heard about bitcoin or cryptocurrency, or how good their investment is. But the world of blockchain is full of different nuances of coins and tokens as well as projects and types of cryptocurrency currently in circulation.
Types of Cryptocurrency
Blockchain technology has reached many types of cryptocurrency. The first Blockchain and cryptocurrency is Bitcoin.
A new blockchain is then created, which results in the birth of altcoin. Most of the cryptocurrency that we see today is generated from Bitcoin and Ethereum forks. Fork is a cryptocurrency base code update that gives new coins that have a different purpose than the parent coin. Based on this goal, we can categorize several coins and tokens on the market today.
Privacy coins are cryptos designed to allow users to transact anonymously. These coins have special protocols that are implemented so that only senders and recipients know how much they are transacting. The wallet balance that holds privacy coins is only known to the user.
A utility token is a token that gives users access to products or services on the blockchain platform. They are part of the Blockchain Economy because it was issued by their original platform.
Cryptocurrency is, basically, a decentralized protocol where networks are hosted among miners. A dApp (decentralized application) is a decentralized protocol with an accompanying interface that allows users / miners to perform certain functions.
Security tokens do not have utilities on certain platforms. They represent the part of the company that published it. They are like stocks that offer ownership of a portion of the company.
Tokenized Securities (patented securities) represent prices of traditional financial assets such as securities, commodities, or bonds in digital form.
ICO is a way to attract funds and investors, which does not involve strict regulatory procedures applied to traditional fundraising methods.
STOs (Security Token Offers) are held by established companies who want to get more investors to use funds for their latest goals and development. STO publishes securities that give their investors the right to have access to profits, dividends, and company interest rates.
