Differences between a currency and a Token

elsociooficial (58) in steemit • 7 years ago

Differences between a currency and a Token

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There are 2 types of financial instruments in the world of the Criptomonedas, the first are the currencies, currencies like the Bitcoin, Litecoin and several others these coins never made an ICO these currencies are used to exchange value between people let's say that That's their only specific function as far as trade is concerned

On the other hand we have what is called tokens many people believe that a token is only a currency that runs in the Blockchain of Ethereum and that is not correct, really a token is the equivalent of the action of a company, and those actions or assets what are used is to capitalize on a project that will use the technology of the Blockchain in some other area of the economy or infrastructure

I leave you 3 easy ways to distinguish whether it is a coin or Token:

Is there a company or individual who made an ICO?
Do you have a separate Blockchain for a specific service in an industry?
Is it used as a payment method or is it used as a benefit within a platform?

If you can answer those 3 questions you will be very easy to distinguish between a currency and a Token

I hope I was helpful with this content, can help me doing upvote, Resteem and follow in Steemit...

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7 years ago by elsociooficial (58)

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ubikalo (56) · 7 years ago

interesante, aprendiendo cada dia bro

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minnowsupport (70) · 7 years ago

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sajin48 (27) · 5 years ago

Crypto-world can be confusing. The words token and currency are widely used interchangeably. Currencies are what we know as crypto coins. A token represents an asset or a utility. The article https://www.epixelmlmsoftware.com/blog/difference-between-coins-and-tokens neatly explains their differences with usage, development, deployment, and examples.

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