The global cryptocurrency market is growing with every passing day. Coinmarketcap data suggests that one new cryptocurrency gets listed on the portal. With rapid growth, most companies give cryptocurrency development services.
Cryptocurrency is a medium of exchange that store the value of the digital asset without incurring significant losses in terms of purchasing power. It is an asset that can be held or exchanged for a fiat currency at a later date. It can be broadly categorized into two parts such as tokens and coins. Most of the time, investors are not clear about the technical differences between coin and token.
Let’s highlight the technical differences between coins and tokens with the exploration of their blockchain platforms.
So let us get started!
What is Cryptocurrency?
A native asset of a blockchain network that is used to perform trades and plays the role of a medium of exchange for value storage is known as cryptocurrency. It is directly issued by the blockchain protocol on which it runs and is often referred to as a blockchain’s native currency. In many cases, cryptocurrencies are used to keep the cryptocurrency’s network secure apart from paying transaction fees. Cryptocurrencies are broadly categorized into two parts coins and tokens.
Understanding Tokens
Tokens are a sub-category of cryptocurrencies, in the sense that they are a type of currency based on the blockchain. It can be used to transfer assets from one account to another. However, unlike cryptocurrencies, tokens are dependent on smart contracts.
Cryptocurrencies are native assets developed on a specific blockchain protocol, whereas tokens are built on top of those blockchains. The native token for Ethereum is ether (ETH). Tokens can be considered coins, but not all coins can be considered tokens.
A Definition of Crypto Coins
A crypto coin is a digital asset based on the blockchain platform. Bitcoin was the first-ever crypto coin as it has clear features that define a crypto coin and separate it from the crypto token.
These are Crypto coins that operate on blockchains. They keep track of all transactions that involve their native crypto coin. They have an independent blockchain-like blockchain. Furthermore, crypto coins are trusted for transactions handled by blockchain, although crypto tokens rely on smart contracts.
The Ethereum blockchain is where all Ether transactions take place. For example, Ether is the native token of the Ethereum blockchain. Thus, all the transaction records are secured and only accessible by members.
Different Platforms for Token Development
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EOS
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Tron
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Ethereum
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Tezos
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Stellar
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NEO
● Ethereum
Ethereum is a decentralized blockchain platform specifically designed to develop or run smart contracts. Smart contracts are the quantity of data stored in the form of code on the blockchain. The stored data can be activated at the time of blockchain transactions.
The advantage of smart contracts is that they can be used to create decentralized applications (DApps). They run exactly as programmed with no downtime. The native currency of Ethereum used to transfer for the blockchain transactions is ether.
Now let’s explore the potential of the Ethereum platform. It has many token development standards listed below.
- ERC20
- ERC 721
- ERC1155
- ERC1400
- ERC223
- ERC777
The ERC-20 standard contains a list of key functions that make it complete to meet the standard.
The functions are:
- TotalSupply
- Balance
- Transfer
- TransferFrom
- Approve
- Allowance
● EOS
EOS is known as the best platform for the development of decentralized applications that are helpful for the development of tokens. It is an open-source network that provides you with an operating system with functionalities important for decentralized applications.
ERC protocols are highly valued by developers as a powerful blockchain platform similar to Ethereum functionalities, for creating hybrid tokens. The goal of EOS is to provide a user-friendly and business-friendly tool for building dApps while eliminating the disadvantages of traditional blockchain platforms like Ethereum.
Technical features of EOS are listed below
- Scalability
- Upgradability
- Permission schema
- Flexibility
- Less energy consumption
- Parallel processing
- Decentralized operating system
● Tron
Tron is a decentralized blockchain network well suited to building large-scale or complex enterprise-level tokens. However, the core functions of Tron’s blockchain network are also similar to other blockchain networks like Ethereum. Tron blockchain network enables token developers to build scalable tokens that are adaptable to changing business demands.
The focus of the Tron blockchain network is to expand the market of decentralized digital content applications by making it easier to create and deploy them. These are the reasons to make Tron an advanced blockchain. The most popular tokens of Tron are given below:
- TRC 10
- TRC 20
● Tezos
Tezos is an open-source, self-amending decentralized platform for building dApps. It is very similar to Ethereum, as it also supports dApps building using smart contracts. Tezos, however, has some distinctive unique features that make it different from Ethereum. Out of them, the most remarkable one is the network’s on-chain governance, which allows holders of XTZ, Tezos’ native coin, to vote on the network’s future direction.
● NEO
In addition to Ethereum, Neo is another popular blockchain platform that allows tokens to be developed on top of it. The rules for creating a token were defined by a standard called NEP-5. Interestingly enough, NEO does not restrict developers from using only Solidity-like languages to write smart contracts. A developer can use any high-level programming language, such as C#, Java, Python, and Kotlin, to build a unique token on NEO.
● Stellar
Stellar is best known for community-owned blockchain networks and cross-assets transfer blockchain networks. It is one of the easiest & the best open-source, distributed networks. The native cryptocurrency used for Stellar is named Lumens (XLM). Additionally, Stellar’s blockchain network can support other tokenized assets.
Stellar blockchain network allows the user to create their token aside from Lumens. Like the Ethereum blockchain network, the stellar blockchain network also houses other token types.
Final Thoughts
Before finalizing the platform, you have to analyze the actual functionalities of different blockchain platforms and how these functionalities can be helpful in token development for particular needs. Choose a blockchain network suitable for your project needs and avail of custom token development services to save time and money.
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