Are you a technology or Internet enthusiast? Perhaps you have heard of Cryptocurrencies. They are indeed one of the easiest forms of payment today. However, even with their booming technology and easy criterion of use, the majority still don’t know what they are, how they function, or even how to use them. Luckily, this blogs reveals some of the key things you need to know about cryptocurrencies, tokens, ERC-20, and Bitcoin forks. It will help you get the heck of them in the shortest time possible.
What Are Cryptocurrencies And Their Types?
Before you get to know of the several types of cryptocurrencies, let’s start with the definition. They are simply digital or virtual currencies that utilize the sophisticated technology of cryptography in their encryption. This encryption technique is necessary for verifying and securing the transfer of transactions. Cryptocurrencies first decentralized coin is known as Bitcoin. It is powered by a public ledger-usually record and validates transactions chronologically. This process is known as the Blockchain.
So, now that you know what they are, what are their other types? Typically, there are only two common categorizations of cryptocurrencies. They include tokens and alternative cryptocurrency coins (Altcoins), which are also known as Bitcoin forks.
Typically, a fork is a divergence in the state of a blockchain. It is used interchangeably and is commonly an alternative to Bitcoin (Bitcoin fork). It is built using an open-sourced method of Bitcoin. Further, to make it unique, its underlying codes are altered to bring forth an entirely new coin with a similar functionality but different features. There two types of forks; soft fork and hard fork.
Tokens on the hand are a representation of a particular utility or asset. These assets and utilities are commonly found on top of another blockchain. They can represent any tradable and fungible assets.
To sum it all, the main difference between forks and tokens is their creation of use, modification, and structure. Forks use a separate currency with their own independent blockchain technologies. Conversely, tokens operations are mainly on top of a blockchain and are usually created and distributed to the general public through an Initial Coin Offering (ICO) or ERC20. Nonetheless, what are ICO and ERC20?
Initial Coin Offering (ICO) and ERC20
ICOs are based on Ethereum but more specifically on its smart contracts. Its shares are sold for ETH or BTC in form of tokens known as ERC-20. In other words, ERC-20 tokens are a native currency of Ethereum (ETH) or Bitcoin (BTC) blockchain. Additionally, they also act as their corresponding coins. In fact, ERC-20 tokens are regarded as the heart and mind of Ethereum.
Can Cryptos Be Changed?
In case you are wondering whether you can change BTC to ETH. The answer is quite simple. Yes, you can. The easiest method to do so is by using changelly. This is simply a website for exchanging cryptos. You can comfortably change your coins without worry or fear of falling to scam. Visit our website and enjoy a whole new level of changelly services. We have listed plenty of Bitcoin forks and ERC20 tokens. There are over 130 cryptos and counting. We list new alternatives and tokens every week. Stay up-to-date with our latest news and enjoy all the full benefits cryptocurrencies have to offer.
With the likes of robot technology and the artificial intelligence in the current digital world, there is no doubt we have evolved to the new world of technology. Remember, the above currencies will not only offer you an advanced method of payment but will also guarantee security and safer transactions.