Greetings to every Steemian around the world. It is volume 5 of the Grassroot Crypto Education and it is tutored by @fredquantum. This week, we learnt about Coins and Tokens which is an important part of blockchain technology. I have been able to read through the lesson for this week and I will answer the questions below. I will appreciate your feedback and contributions which will help me keep learning.
Homework Task
Explain Coins and Tokens. Differentiate between the two.
List some examples of Coins and Tokens, and their blockchains. Briefly talk about one of the assets listed earlier (Hint: its brief history, current price, circulating supply, and market capitalization).
Answer
1. Explain Coins and Tokens. Differentiate between the two.
Coins are cryptocurrencies that are built on their blockchain while tokens are cryptocurrencies built on other blockchains for the main purpose of raising enough resources to build their own.
The primary differences between coins and token
Coins are cryptocurrencies that are native to their blockchain.
Coins are digital currencies similar to physical currency.
They are mainly used as a source of payment.
Tokens are cryptocurrencies built on other blockchains since there aren't enough resources to build their own.
Tokens are digital assets or deeds issued in a particular project.
They are used for payments and signing digital agreements.
2. List some examples of Coins and Tokens, and their blockchains. Briefly talk about one of the assets listed earlier (Hint: its brief history, current price, circulating supply, and market capitalization).
Examples of Coins
| COINS | BLOCKCHAIN |
|---|---|
| Ether | Ethereum |
| Bitcoin | Bitcoin |
| Tron | Tron |
| Steem | Steemit |
| Zuga | ZugaCoin |
Examples of Tokens
| TOKEN | BLOCKCHAIN |
|---|---|
| Just | Tron |
| Tether | Bitcoin/Ethereum |
| Binance coin | Binance |
STEEM
Steem is the cryptocurrency of Steemit. The Steemit platform is a blockchain-based social media founded in 2014 by Dan Larimer who is the CEO of BitShares. It was launched on July 16, 2016.
In the present exchange market, a steem coin goes for $0.3167. Its circulating supply is 394,951,699. To find its marketing capitalization, CP is multiplied by CS.
Coinmarket
M = CP × CS
= $0.3200× 394,951,699
=126,384,543.68