Blockchain, a transparent digital ledger, tags transactions with unique “hashes” and drives Bitcoin’s success, promising to transform the digital economy by challenging norms.
Understanding coins versus tokens is key in cryptocurrencies. Coins such as Bitcoin and Ethereum operate independently, mimicking traditional money for transactions and value storage.
Tokens on existing blockchains serve various software functions, from access grants to verifying identities and tracking supply chains. Notably, NFTs authenticate uniqueness, even representing physical assets. Ether illustrates token usage on Ethereum, enabling transactions to be constructed and unchangeable.