Listing a company on the stock exchange today requires the fulfillment of many procedures. On the one hand, it is good, because it protects investors in many respects. However, this path has considerable disadvantages. The most important is limiting access to capital for many innovative projects and ideas. ICO gives you the opportunity to raise funds for your idea in a faster and more efficient way. In essence, it is something between issuing shares and crowdfunding.
When we invest in a given listed company, we receive shares, i.e. securities that make us shareholders of the company. When we invest in ICOs, the organizers paid us tokens. What are they?
The answer is not simple at all, because the concept of a token is not exact today. The tokens themselves play different roles in different projects, and they can be classified into three subgroups, which we will discuss in a moment. In short: a token is a digital token, the economic basis of almost any blockchain project, and its specific nature varies depending on the ICO.
Stock tokens are the closest to a stock market. In principle, they are to give their owners property rights. For now, however, their functioning depends on the legality and regulatory issues in a given country.
Although their status is not entirely clear today, we can assume that they will be an alternative to traditional stocks in the future.
These are tokens that reflect real assets, for example in the form of stocks or shares in a company, bonds, property ownership, ownership of receivables, etc. Therefore, their possession is proof of ownership of a given asset.
As part of their issue, one of the parties entrusts funds, and the other issues tokens that give the buyer the right to participate in the company's profits or guarantee a constant rate of return on investment. The contract concluded in this process is confirmed using blockchain technology, it is the so-called smart contract.
Utility tokens are simply digital tokens issued to finance a project. They do not entitle you to receive a return on investment, i.e. the money you put in. However, they do give access to the project's services.
Blockchain, or blockchain, is a technology that stores and transmits information about transactions concluded on the Internet. This information is arranged in the form of consecutive data blocks. One block contains information about a certain number of transactions, then, after it is saturated, another block of data is created, followed by another and the next, creating a kind of chain. Information about various types of transactions, e.g. trading, buying or selling currencies, including cryptocurrencies, can be sent there.
The main essence of blockchain operation is to maintain a joint and collective transaction ledger in a digital form, distributed over the network, in the same copies. This technology is based on a peer-to-peer network without central computers, management and transaction verification systems. Each computer connected to the network can participate in the transmission and authentication of transactions. Thanks to complex cryptographic tools, this book is fully secured against unauthorized access, and at the same time it is open to everyone. The user can view and verify the entire history of transactions from the very beginning of the blockchain's existence up to the present day.
Simply put, the cryptocurrency has its own blockchain created for the needs of this cryptocurrency. It is the base coin for this blockchain. Meanwhile, a token is a token that uses the blockchain of a given cryptocurrency.
Ethereum is a distributed open source development platform based on blockchain technology. It supports P2P network contracts (peer-to-peer, i.e. data exchange in a network where each node - the user - is equal in the hierarchy) and decentralized dapps applications.
This enigmatic definition does not say much. However, it is important to recall it in order to understand what ether actually is (ether, ETH). Ether is the virtual currency of the Ethereum network that network users pay for transactions between users. There are also smaller units: finney (0.001 ETH), szabo, shannon, babbage, lovelace and the smallest of them: wei. Each one is worth one thousandth of a higher denomination Ethereum unit.
Now that we know that Ethereum is not a cryptocurrency, as is commonly believed, but a blockchain network, it is worth describing how it all works. Ethereum as a peer-to-peer network (of equal units - computers) consists of complex blockchains. Each block is made up of individual nodes called miners or excavators.
Each block has a pool of unprocessed transactions that are processed by the miners' computers. Each transaction is processed with a payment in ether. Excavators, having free computing power, choose transactions that are worth the most.
The Ethereum system generates new ethers to reward nodes (miners) for their contribution to the development of the blockchain network. This assumption determines the fundamental difference between the ETH cryptocurrency and BTC (bitcoin). The supply of ethers is unlimited, as is the constantly evolving structure of the blockchain network. Ethers, unlike bitcoins, are subject to the laws of inflation.
As mentioned earlier, Ethereum is not a cryptocurrency. Ethereum is a blockchain network platform in which transactions are concluded, then remunerated with a cryptocurrency called ether (ether, ETH). Do not confuse ETH ethers with ETC (ethereum classic) ethers. The ETC derivative cryptocurrency was created after the Ethereum community broke up in the spectacular cyber theft of $ 50 million in Ether units in 2016.
One of the co-founders of Ethereum is Vitalik Buterin, a programmer with Russian-Canadian roots, who was also behind the creation of Bitcoin Magazine. The concept of the system was first described in 2013, and work on the platform software began in 2014. Behind them was a Swiss software company: Ethereum Switzerland GmbH.
In the same year, it was announced that Ethereum would be developed by the non-profit Ethereum Foundation. The first source of funding was the crowdfunding campaign. It was also possible to exchange owned bitcoins for ethers at an attractive rate.
Binance Smart Chain is an Ethereum fork with a few changes added, meaning many token standards are identical. This does not mean, however, that you will find the same tokens on both chains. BSC has its own set of ERC-721 tokens (BEP-721).
Binance Smart Chain (BSC) is best described as a blockchain running parallel to Binance Chain. Unlike Binance Chain, BSC offers smart contract functionality and compatibility with Ethereum Virtual Machine (EVM). The goal of the project was to leave Binance Chain's high throughput intact while introducing smart contracts into the ecosystem.
BEP-20 is the token creation standard for BSC. Tokens are an important element of any blockchain-based system or dApp. They facilitate the flow of value and help you track every activity along the chain. In other words, they are the key to carrying out transactions.
The abbreviation "BEP" stands for "Binance Smart Chain Evolution Proposal." BEP-20 is the token standard developed by Binance for Binance Smart Chain, a smart contract platform that runs parallel to the original Binance Chain. Later in the article, we will also discuss the BEP-2 token standard. First, however, let's deal with the blockchain that supports smart contracts.
Polygon (MATIC) is an Ethereum token that enables the Polygon Network, a scaling solution for ethereum, to operate. Polygon aims to provide faster and cheaper transactions in ethereum using Layer 2 sidechains which are blockchains running alongside the main ethereum chain. Create MRC20 Token.
Fantom (FTM) is a new generation blockchain, which the creators call "blockchain 3.0". It is the first blockchain platform in the world that - as the authors argue - solves the problems with scalability and sometimes confirming transactions that plague other blockchain projects, such as Ethereum. Generate FRC20 tokens.
Heco, unlike Ethereum, is an apparently public network - anyone can become a user as long as they have the means to perform transactions, with the difference that they are centralized. They are managed by specific organizations (Binance, Huobi), which entails certain limitations. Create HRC20 Token.
IOTX is an ethereum token that supports IoTeX, a platform designed to connect IoT devices (such as cameras and sensors) and decentralized applications. You can use IOTX to pay for transactions, for staking and management, and for registering new devices to an IoTeX network. Create XRC20 Token.
Celo is a platform that acts as a global payment infrastructure for cryptocurrencies aimed at reaching mobile users. Deploy your own CRC20 Token.
Optimism is the Tier 2 scaling solution for the Ethereum network, using tools that aggregate transactions outside of the Ethereum blockchain. This provides benefits such as lower transaction costs and significantly improved network and transaction speeds.
Avalanche is a relatively young platform developed by the Ava Labs team, allowing anyone to easily create their own multi-functional blockchains and decentralized applications (dApps). Its purpose is to address some of the limitations of older blockchain platforms. Create ARC20 Token rigt now with our best multichain token generator.
First and foremost, it is about improving transaction speed, decentralization and scalability issues. For these purposes, Ava Labs has created a number of unique solutions, including unique Avalanche consensus protocol, which is to ensure high efficiency and speed of the network, high throughput, as well as take care of security issues, e.g. by ensuring resistance to the so-called attacks 51%. This kind of "hack" was once the bane of bitcoin. Depoy ARC20 Token using our multichain token generator.
The Arbitrum protocol is a layer 2 solution that was developed by the New York-based company Offchain Labs, trying to solve the problem of Ethereum network congestion by improving the way of verifying smart contracts.
The platform takes advantage of the security provided by the Ethereum main network, but allows smart contracts to run on a separate layer to reduce network congestion. This technique is known as a rollup (explained in detail by the developers here) and involves a series of transactions and writes being verified on the lower tier and then transferred to the main layer 1 network - in this case the Ethereum main network.
Arbitrum rewards nodes that actively verify smart contracts in the Arbitrum chain (called aggregators) and ETH. They are responsible for adding blocks to the first layer - the Ethereum main network. Create ERC20 Arbitrum Token.
Moonriver is a smart-contract blockchain built on Kusama that aims to integrate with the existing tool chain and network for Ethereum developers. It is intended to be a Moonbeam companion network with the goal of providing a sustainable, motivated Canary network. The new code will first be made available on Moonriver, where it can be thoroughly tested and validated in real conditions. The same code will then be sent to Moonriver on Polkadot when proven. Create MRC20 Token with our superfast, chep and easy token deployer. Create MRC20 Token.
Fuse Network is the decentralized EVM-compatible public blockchain that powers the Fuse platform and ecosystem. It is fully compatible with Ethereum meaning that any smart contract that can be deployed on the latter can also run on top of Fuse Network.
The Fuse Network blockchain uses a variant of delegated Proof of Stake (dPoS) for achieving consensus. The consensus is secured by a significant number of independent validators, only one of which is run by the Fuse core team.
Project Harmony (ONE) was launched in May 2019 as part of the IEO on Binance Launchpad. The aim of the project is to maintain a consensus between scalability and decentralization. Harmony was built in line with the idea of "large-scale decentralization", with an emphasis on the issue of quick access to data, as well as building markets for convertible and NFT tokens.
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