- What is the difference between cryptocurrency and token?
- Cryptocurrency - is
- a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of central bank
- the base currency which is used to establish the common denominator for all the products
- Tokens -
- represent programmable assets or access rights.
- are accessible only by the person who has the private key for that address and can only be signed using this private key.
- are a digital representation of tangible or intangible goods which are specific to a product
- cannot buy tokens using tokens
- Example: dollar is your base currency which can be used to buy oranges and cars. Here we can take dollars as cryptocurrency which is used to buy orange tokens and car tokens. These orange tokens or car tokens represent that you own certain quantity of oranges or cars and you paid for these tokens with coins.
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