The digital world is transforming in ways we never imagined, and Non-Fungible Tokens (NFTs) are leading the way. Thanks to blockchain technology and NFTs, social media platforms are beginning to experience a new level of engagement. From customizable avatars to augmented reality items, NFTs are giving big tech companies new ideas. This article will explore the potential benefits of using NFTs for social media platforms and the sector’s best practices. In this context, Instagram's experiment with NFTs represents a peculiar…
Coins vs. Tokens: What Are the Differences and Similarities?
Crypto coins and tokens are digital assets that use blockchain technology, but they have some key differences.
A crypto coin, like Bitcoin or Litecoin, is a standalone digital currency used to buy goods and services or traded on cryptocurrency exchanges. Coins have their blockchain and can be mined (created by solving complex mathematical equations) or minted through staking.
On the other hand, a token is a digital asset built on top of an existing blockchain, like Ethereum or BNB Chain. Tokens are typically used to represent a specific asset or utility, such as a stock or a voting right. They can also be used to raise funds for a project or business through an initial coin offering (ICO). Tokens are created and transferred using smart contracts on the blockchain.
One similarity between crypto coins and tokens is that both can appreciate or depreciate. In addition, both can be bought and sold on cryptocurrency exchanges.
Example:
- Bitcoin is a crypto coin; you can use it as a means of payment or store of value, and it can be mined or bought on exchanges
- An example of a token is an ERC-20 token on the Ethereum blockchain, used as a means of fundraising for a startup, it can be bought and sold on exchanges, but it has no mining process.
price
price change
In summary, crypto coins are independent currencies, while tokens are built on top of existing blockchains and are used to represent assets or utilities.
Block Education
@BlockEducation
@BlockEducation
Are you tired of long boring cryptocurrency and blockchain guides? So do we! We make it easier for you to understand crypto/blockchain concepts with short explanations.
VIEW AUTHORMore author posts
What Are Crypto Copycat Projects?
Crypto copycat projects are cryptocurrencies designed to imitate the functionality and success of existing cryptocurrencies. These projects typically try to capitalize on the popularity of established cryptocurrencies, such as Bitcoin, Ethereum, or Binance Coin, by offering similar features, branding, or even a name close to the original currency. The aim of copycat crypto projects is often to ride the coattails of the original cryptocurrency's success and make a profit by selling tokens or coins to investors who are attracted to…
1 month ago 447 views
What is NFT Utility?
NFT utility refers to the practical uses and functions of non-fungible tokens (NFTs) beyond their traditional purpose as digital collectibles. While NFTs are often associated with artwork or unique digital assets, their utility can extend to various applications, from gaming to finance to supply chain management. One of the primary benefits of NFT utility is that it enables creators and developers to create more value for their digital content by making it more easily transferable and accessible to users. In…
1 month ago 461 views
What Are Soft Cap and Hard Cap?
Soft Cap and Hard Cap refer to two important concepts related to fundraising through Initial Coin Offerings (ICOs) or Token Sales. These two terms describe the minimum and maximum amount of funds a project aims to raise during its crowdfunding campaign. How Do They Work? A Soft Cap is the minimum amount of funds a project needs to raise to consider its fundraising campaign successful. It is a target set by the project team to ensure that they have enough…
1 month ago 440 views
How to Spot Fake Crypto Projects
Fake crypto projects, also known as scams, fraudulent projects, or Ponzi schemes, are illegitimate projects that deceive investors by promising high returns on investment but absconding with the investors’ funds. Cryptocurrency scams have become more prevalent due to the high level of anonymity, decentralization, and lack of regulation in the crypto industry. This article will explore the characteristics of fake crypto projects and how to spot them. Characteristics of Fake Crypto Projects Lack of transparency: A fake crypto project will…
1 month ago 353 views
Start your publisher journey
Start writingEditor's picks
ArtHouse Spirits DAO – A Project Combining Tokenized Rum with Real Benefits
We live in an era of unprecedented technological advancement, with the potential to combine traditional industries with new digital technologies. ArtHouse Spirits DAO is a project combining tokenized rum with real benefits while leveraging the Dictador brand and artistic collaborations. By appealing to an élite group of high-net-worth individuals, this project aims to create a luxurious community. Here, members can benefit from exclusive events, investments, and more. Today's article will explore the project’s potential and its team's roadmap, giving you…
2 days ago 63 views
A Detailed Analysis of Euler Finance’s $196 Million Flash Loan Attack
On 13 March 2023 at 08:56:35 AM +UTC, DeFi lending protocol Euler Finance experienced a Flash Loan Attack. Euler Finance is a protocol that operates as a permissionless lending protocol. Its primary goal is to facilitate lending and borrowing of various cryptocurrencies for users. The UK-based tech startup utilizes mathematical principles to develop non-custodial protocols on Ethereum and other blockchain networks, with a focus on achieving high performance. Based on on-chain data analysis, the attacker has successfully executed multiple transactions resulting…
2 weeks ago 351 views
DevourGO Establishes Devour DPAY as the Payment and Rewards Token for the Restaurant Industry
The global economy is steadily transitioning from Web2 to Web3, and the restaurant industry is no exception. In this context, DevourGO has established Devour DPAY as this sector's payment and rewards token. The strategy offers restaurants a way to connect with Web3 communities while giving their guests real-world recognition for their affiliations. The project has three core utility pillars - crypto payments, DPAYBack rewards, and NFTs. In this way, DevourGO's ecosystem creates a win-win relationship between restaurants and their customers.…
2 weeks ago 2.9 k views
BingX – A Crypto Exchange with Enhanced Copy Trading Features and More
As the number of traders in the crypto industry grows, different people look for different products to suit their needs. One of the most popular names in the cryptocurrency industry is BingX. It's a popular crypto exchange that offers spot, contract, copy, and grid trading to millions of customers in over 100 countries. Today's review will examine BingX and its features, focusing on copy trading and other essential platform aspects. What Is BingX? BingX is a leading crypto exchange that…
2 weeks ago 512 views
An Account of the Recent White Hat Attack on DeFi Protocol Tender.fi
In the latest development in the world of Decentralized Finance (DeFi), Tender.fi, a DeFi lending protocol, fell victim to a white hat attack. The alleged ethical hacker behind the attack had managed to drain a whopping $1.6 million from the platform, forcing the service to halt borrowing while it attempts to recover its assets. The attack, which took place on Mar-07-2023 at 08:21:38 AM +UTC, has caused significant concern among the DeFi community. According to Numen Cyber’s on-chain monitoring, the attacker siphoned 198…
2 weeks ago 266 views
Is Polkadot a Good Investment in 2023?
Since the inception of cryptocurrency, the bull run and the bear market have had significant impacts. In fact, because of the volatile nature of cryptocurrency, these are two sides of the coin every crypto investor anticipates when investing in the market. While investors look forward to the bull run, the bear market, also known as "crypto winter," is the dread of any investor. As of 2022, a report by CNBC stated that cryptocurrencies suffered a considerable decline, losing about $2…
3 weeks ago 366 views
Clinton and Epstein’s Flight Log Now An NFT Collection by ViceHub
Crypto enthusiasts have found a new way to immortalize history with the launch of 'Lolita Adventures.' This NFT collection is based on former US President Bill Clinton and late financier Jeffrey Epstein's flight log. ViceHub, an Ethereum and Solana-based NFT project, has created this collection combining satire and journalism to tokenize a piece of history. The Idea Behind this New NFT Collection The crypto space is witnessing yet another project working to change the NFT narrative. Through Lolita Adventures, this…
1 month ago 891 views
What Are Crypto Copycat Projects?
Crypto copycat projects are cryptocurrencies designed to imitate the functionality and success of existing cryptocurrencies. These projects typically try to capitalize on the popularity of established cryptocurrencies, such as Bitcoin, Ethereum, or Binance Coin, by offering similar features, branding, or even a name close to the original currency. The aim of copycat crypto projects is often to ride the coattails of the original cryptocurrency's success and make a profit by selling tokens or coins to investors who are attracted to…
1 month ago 447 views
What is NFT Utility?
NFT utility refers to the practical uses and functions of non-fungible tokens (NFTs) beyond their traditional purpose as digital collectibles. While NFTs are often associated with artwork or unique digital assets, their utility can extend to various applications, from gaming to finance to supply chain management. One of the primary benefits of NFT utility is that it enables creators and developers to create more value for their digital content by making it more easily transferable and accessible to users. In…
1 month ago 461 views