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Author: Admin | 2025-04-27
One of the most popular crypto coins around and more than just a cryptocurrency. Thanks to the creation and implementation of smart contracts, Ethereum has become home to thousands of blockchain projects and non-fungible tokens (NFTs). In some ways, it’s the backbone of the blockchain revolution.Cardano (ADA) is an open-source and decentralised blockchain platform that was one of the first to run on a PoS consensus, gaining a rep as a green crypto coin. Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson and facilitates peer-to-peer (P2P) transactions with its coin ADA.What Are Tokens?Like crypto coins, crypto tokens are designed using blockchain technology; however, crypto tokens aren’t native to a blockchain. Instead, they’re built on top of it, often utilising smart contracts to fulfil a variety of purposes.While crypto coins mimic traditional currencies, crypto tokens are more like assets or even deeds. A crypto token can represent a share of ownership in a DAO, a digital product or NFT, or even a physical object. Crypto tokens can be bought, sold, and traded like coins, but they aren’t used as a medium of exchange.To use a real-world example, crypto tokens are more like coupons or vouchers, while crypto coins are like dollars and cents.There are numerous types of crypto tokens:Some governance tokens offer holders voting rights in a DAO. Utility tokens may provide access to certain services or products developed by the token issuer. Security tokens act like traditional securities and are even treated the same by many governmental agencies.What Are Tokens Used For?Most crypto tokens are designed to be used within a blockchain project or decentralised app (dapp). Unlike crypto coins, tokens aren’t mined; they are created and distributed by the project developer. Once tokens are in the hands of purchasers, they can be used in countless ways.Popular Crypto TokensFilecoin (FIL) and Arweave (AR) give users the ability to spend their utility tokens for the privilege of storing data on their decentralised network, pushing the concept of cloud storage to its full potential.Axie Infinity, one of the best-known play-to-earn (P2E) on the market, features a utility token called Smooth Love Potions (SLP). By earning or purchasing SLP, players can perform exclusive in-game tasks.Cronos (CRO) is the utility token for the Crypto.com ecosystem. CRO can be used to pay fees on the platform or staked for various benefits, and it allows token holders to trade crypto tokens for fiat at a reduced price.What About Stablecoins? Are They Coins or Tokens?Stablecoins are cryptocurrencies tied to specific assets. They are a bit of a misnomer, as most of them are actually ERC-20 tokens (i.e., they operate on the Ethereum blockchain through a smart contract). So why are they called stablecoins? The name lends itself to their primary function of being a medium of exchange.Take USD Coin (USDC), for example. It is a smart-contract-based stablecoin (i.e., it doesn’t have its own chain and is an ERC-20 token). It is backed by US dollars, held by the company that issues the token, to maintain
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