Most of the crypto currencies work on the idea of decentralization i.e. there is no centralized server. Instead they depend on multiple computers owned by different individuals to run the server and maintain the network... read more
There are also non-mineable crypto currencies with great potential out there - such as IOTA, Ripple, Cardano, and numerous others — which are only bought rather than mined... read more
The third main type of crypto currency is a token — the same kind we’ve just been talking about! Out of the three main types of crypto currency, these are the ones I find most interesting. Compared to the other two main types of crypto currency, they are completely unique in the fact that they do not have their own blockchain.
They are used on dApps (decentralized applications); these are the apps I told you about that can be built on blockchains like Ethereum and NEO. The dApps are built to use smart contracts, which is why they use tokens.
Their tokens don’t have to represent a physical thing like electricity or a house, though. They can instead be used to purchase things on the dApp. Either that or they can be used to get certain advantages — things like discounted fees and voting fees.
Tokens always have a price that they can be sold for, which is why some people buy them. Some people buy tokens to sell them later for a higher price, instead of buying them to use them on the dApp.
Because dApps are built on other blockchains (like Ethereum and NEO), a token transaction is still verified by the nodes on the Ethereum or NEO blockchain. This means the transaction fee is still paid with Ether or NEO, and not with the token.
So, to make a transaction on a dApp (i.e. to use a token), you must have some Ether or NEO (or whichever altcoin the dApp is built on) to pay for the transaction fees.
Quick tip: To pronounce dApp correctly, say “dee-app”.
Utility tokens, often called app coins or user tokens, provide users with future access to a product or service... read more
ERC stands for Ethereum Request for Comments. This is an official protocol for proposing improvements to the Ethereum(ETH) network. ’20’ is the unique proposal ID number... read more
While Bitcoin is considered the pioneering crypto currency in the market, there are many other types of crypto currencies available online.. read more