The processes of world globalization and capitalization, coupled with ubiquitous electronization, like a rapid tsunami, gradually cover the entire civilized and advanced world. Every now and then there is talk of blockchains ( Find out all about the blockchain ), cryptocurrencies, tokens and crowdsales. Not every mere mortal, of course, can immediately guess what is at stake when the bright minds of this world are discussing a course of Bitcoin or etherium.
And the thing is that we are on the threshold of major changes in the global economy, which is literally stepping on a new level of its development. The fact is that cryptocurrency is riveting everyone’s attention, but what it is and how they are connected with tokens remains unknown to many people until now. The market of blockchain systems is growing rapidly and is gaining new economic spaces. But about everything in order.
The era of the new economy
All spheres of life are now covered by the whirlwind of a new information age and an extraordinary technological development. The economic sphere is gradually moving into a virtual field. Printed banknotes in a hundred years may cease to be issued altogether and everyone will switch to Internet calculations in various universal conventional units.
The newest economy is subject to the laws of cryptography, which serves to ensure the confidentiality, integrity of data and their encryption. This economy is also called the token-economy or the era of cryptosystems or crypto networks.
Such networks have the form of decentralized business models, and they sell their tokens. Previously, it looked like selling shares (assets) or investing money in various real projects. Here we are talking about virtual (digital) money in the investment market .
What is meant by the word cryptocurrency?
Cryptocurrency is often called digital gold. It is nothing like virtual money. Such a digital currency is universal and does not depend on the euro or the dollar. The price depends only on the supply and demand for it. This is its independence.
There are already quite a lot of such currencies; they all compete on cryptocurrency exchanges and form their own systems, the functioning of which is subject to special protocols. This, for example, the system Bitcoin, Ethereum, Ethereum.
Immediately it should be noted, what is the indisputable advantage of such currencies over the usual for us usual currencies of different countries. Cryptocurrency is not subject to inflation, since its release is always strictly limited.
Thanks to cryptographic features, such a virtual currency has the highest degree of protection against fakes and various hacker attacks.
Mining cryptocurrency is essentially its emission, if we compare tokens with stocks or securities. Mine means to get (get) cryptocurrency. Lots of computers across the Earth through mathematical calculations select the necessary hash to get digital gold.
What distinguishes a token from cryptocurrency itself?
The so-called electronic tokens are called a token, as it were, changeable conventional units, for which you can purchase the cryptocurrency itself at a certain rate. Tokens are different:
- User (app-tokens) or application tokens for which users of the system can receive services in a certain crypto network (for example, Bitcoin or Sia);
- credit or debt, they are carried out by this crypto network (decentralized business model) in exchange for interest on the loan;
- capital tokens that are similar to peculiar network shares.
Depending on their protocols, different networks can operate with different types of tokens. For example, Ethereum works only with App-Tokens. But Steemit uses all their existing varieties.
Where to buy a token?
Tokens are traded on various cryptocurrency exchanges and you can buy them there. They are tied to the euro and thus they can be purchased for money. And then convert the cryptocurrency itself into live euros.
The type of token itself dictates its propagation mechanism (crowdsale).
You can also purchase coins (cryptocurrency coins) from the miners themselves.
How to create your cryptocurrency token?
This will be the so-called kryptotoken. It is created by companies when they release a new product, when they need their own network currency. A token is created, as a rule, on the basis of a particular blockchain (mainly Ethereum). The ERC20 is usually taken as the basis. Next, using a programming language creates a token with a proper name. Oi has its own interface and a specific implementation. Next, produce a specific quantity of coins.
After we translate to someone else, using the Approve functionality. Several accounts use our tokens. We get a smart contract. Coin transfer events are marked as events. But in order to create tokens and the contract was not useless, we also need a constructor with a limited number of future conventional units. Add the necessary functions and publish in the blockchain.
Bitcoin is the most famous cryptocurrency with the highest capitalization. In some countries, there are already ATMs where you can exchange bitcoins for real money.