All assets on the blockchain are data types with value-added for peer-to-peer Internet payment.
The Names For Blockchain
There are two types of blockchain, the first is called self-hosted, native, or the layer 1. The second is called the distributed ledger technology (DLT), Virtual Machine(VM) integrated blockchain, or Layer 2.
Currency names on the blockchain are interchangeably used, for example, cryptocurrency, crypto, coin, token, digital asset, and visual asset, are created with different encryptions and mechanisms for easy identification, prevent double-spending, and manipulation.
A blockchain can have different types of token standards, each with special functionality.
What Is Cryptocurrency
Cryptocurrency is the native asset of a blockchain network built for the medium of exchange, for example, Bitcoin, Ethereum, and Algorand are native blockchains, and their native asset is called coin because they are self-hosted with special technicality, functionalities, decentralized for open sources which other protocols can build or integrate on them.
Why Cryptocurrency is Called Coin.
Cryptocurrency is called a coin when it needs to be specifically described or calculated in a mathematical method, and it is called crypto-currency to describe it as an internet payment currency.
What Is a Token?
Tokens are projects built on the native blockchain, they are classified as crypto-tokens created for different purposes which represent physical assets or traditional assets. There are various types of token standards for example the Ethereum ERC-20 and ERC-721 are two different token standards on the Ethereum blockchain, these standards are used for different purposes on the blockchain
What Is a Visual asset?
Visual assets are Non-Fungible Tokens (NFT) which can be created on any blockchain and can be traded on decentralized applications, platforms, or metaverse. There are different types of token standards used for Virtual assets depending on the host blockchain.
What Is Digital Asset?
Digital assets are non-tangible, in context, all assets listed above are digital assets built with advanced encryption to assure the authenticity of assets.
In conclusion, blockchain assets are created with consensus mechanisms to secure the network and prevent data manipulations, and every asset uses a smart contract to outline the functional purposes.
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