New words and terms are relatively confusing when their work and function are in the same domain. The buzzing terms bitcoins and blockchains seem confusingly the same yet quite different in the common language. Crypto covers a large domain having functions and technology in variety. Popular in the market, Bitcoins and Fun Tokens are most heard these days and are confused with being the same. Contradicting the jargon, even though their roots are the same, they are quite different. The following is all about how to use fun token.
What Is The Difference?
- Coins, namely, Bitcoins, ether coins, or NEO, are inherent to their unique blockchains. The transaction isn’t a physical currency change but data exchange through the accounts, monitored by the global database keeping a continuous check on the transfers worldwide.
- Tokens are created on the existing blockchains supported by the coins they work for. For example, the most popular Fun Token is ERC 20 token based on the Ethereum blockchain.
- The coins’ exchange is direct between the accounts without extra pay, but the tokens need to pay for transaction fees as they work over the blockchain.
- The coins are analogous to cash, i.e., one can store them for long without loss, and they are usable in any platform allowing crypto transactions. In contrast, the tokens are manufactured and distributed by certain sites or dealers in limited quantities allowed on the same sites.
Which among the two are beneficial? Depending on the versatility, coins would be more preferred. But the minting and maintaining tokens is far easier. Creating a new blockchain is expensive and difficult, carefully planning the compatibility and the security of the system. Rather using the existing ones for developing the tokens takes fewer efforts.
The stated differences are quite enough to bridge the confusion. Now it would be easy for you to recognize and get the right kind for your requirement.