Cryptocurrencies – How much do you know?

May 28, 2018

The topic of cryptocurrency is one that everyone is buzzing about. While cryptocurrency enthusiasts are gung-ho about investing, other consumers aren’t sure what cryptocurrency is, and many are left wondering, is cryptocurrency even real?

The Money of the Internet

For the uninformed, cryptocurrency can be a bit of a challenge to understand. Cutting through the computing terminology will lead you to discover that cryptocurrency is the new face of money for the Internet age. Read on to find out fast facts about the crypto sphere.

What is Cryptocurrency?Cryptocurrencies are essentially virtual or digital currencies that are secured through cryptography. Cryptography utilizes encryption methods to verify and secure monetary transactions. Bitcoin is almost a buzzword these days and is the first cryptocurrency available to the public. With Bitcoin and other cryptocurrencies, blockchain technology is used to validate and record all transactions.

Coins or Tokens?

Cryptocurrencies can be tokens or coins. Cryptocurrencies are typically categorized as altcoins or alternative cryptocurrency coins or tokens.

Altcoins

These coins are Bitcoin alternatives that are typically forks, or variants, of Bitcoin. These alternatives were created using the original protocols of Bitcoin. These types of coins include Peercoin, Namecoin, Auroracoin, Litecoin, and dogecoins. While Bitcoin is now a household term, other altcoins are quickly gaining demand. Even dogecoin casinos have risen in popularity amongst digital gamblers.

Tokens

Tokens represent a certain utility or asset and are usually build on top of the blockchain. Tokens are built with a standard template and easier to create. You can create your own tokens with programmable computer codes working to self-execute their own creation.

With tokens, users can use the standard token interface to encourage interoperability with other tokens. This allows others to easily store various types of coins as part of the same wallet. Additionally, tokens are distributed for public use with an ICO or Initial Coin Offering. ICO is similar to crowdfunding, spurred by the release of each new token or cryptocurrency.

The Differences Between Altcoins and Tokens

The most significant difference between tokens and altcoins is the structure of each cryptocurrency. Tokens are operated off of blockchain the is used to create decentralized applications, while altcoins are entirely separate currencies that have their own blockchain.

The world of cryptocurrencies is definitely a vast one. Use this brief introduction as a peek into the crypto sphere of this currency of the digital age.

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