Digital gold is conquering the world! What is cryptocurrency and token

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Where to get a token. Creating your own cryptocurrency token

The processes of world globalization and capitalization, coupled with ubiquitous electronization, like a rapid tsunami, gradually cover the entire civilized and advanced world. Talking about blockchains, cryptocurrencies, tokens and crowdsales is heard all the time. Not every mere mortal, of course, can immediately guess what is at stake when the bright minds of this world are discussing the course of Bitcoin or Ethereum.

And the thing is that we are on the verge of big changes in the global economy, which literally steps to a new level of our development. The fact is that cryptocurrencies are attracting universal attention, and what it is, and how they are associated with tokens for many remains unknown until now. The market for blockchain systems is growing rapidly and is gaining new economic scope. But first things first.

The era of the new economy

All spheres of life are now engulfed by the whirlwind of a new information age and extraordinary technological development. The economic sphere is gradually moving into a virtual field. In a hundred years, printed banknotes may cease to be issued at all and everyone will switch to Internet payments in various universal conventional units.

The newest economy is subject to the laws of cryptography, which serves to ensure confidentiality, data integrity and encryption. Such an economy is also called a token economy or the era of cryptosystems or crypto networks.

Such networks are in the form of decentralized business models, and they sell their tokens. Previously, it looked like selling stocks (assets) or investing in various real projects. Here we are talking about virtual (digital) money in the investment market.

What is meant by the word cryptocurrency

Cryptocurrencies are often called digital gold. This is nothing but virtual money. This digital currency is universal and does not depend on the exchange rate of the euro or the dollar. Price depends only on 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, Bitcoin, Ethereum.

It is immediately worth noting what is the undeniable advantage of such currencies over the usual currencies of different countries that are familiar to us. The 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.

Cryptocurrency mining is essentially its issue, if you compare tokens with stocks or securities. To mine means to get (mine) cryptocurrency. Many computers around the world, using mathematical calculations, select the necessary hash to get digital gold.

What is the difference between the token and the cryptocurrency itself

A token is called the so-called electronic tokens, so-called exchangeable conventional units, for which you can purchase the cryptocurrency itself at a certain rate. Tokens are different:

  • User (Arr tokens) or application tokens for which system users can receive services in a specific crypto network (for example, Bitcoin or Sia);
  • Credit or debt, they are carried out by this cryptocurrency network (decentralized business model) in exchange for interest on the loan;
  • Capital tokens that are similar to a kind of network shares.

Depending on their protocols, different networks can operate with different types of tokens. For example, Ethereum only works with Arr 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 pegged 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 is dictated by its distribution mechanism (crowdsale).You can also buy coins (cryptocurrency coins) from the miners themselves.

How to create your own cryptocurrency token

This will be the so-called cryptocurrency. It is created by companies when releasing a new product when they need their own network currency. A token is created, as a rule, on the basis of a certain blockchain (mainly Ethereum). Typically, ERC20 is used as the basis. Further, using a programming language, a token with its own name is created. Oi has its own interface and a specific implementation. Next, we produce coins of a certain amount.

After we translate it 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 for tokens to be created and the contract not to be useless, we also need a constructor with a limited number of future conditional units. Add the necessary functions and publish to the blockchain.

 

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