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Ethereum Smart Contract Development

You're reading from   Ethereum Smart Contract Development Build blockchain-based decentralized applications using solidity

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Product type Paperback
Published in Feb 2018
Publisher Packt
ISBN-13 9781788473040
Length 288 pages
Edition 1st Edition
Languages
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Author (1):
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Mayukh Mukhopadhyay Mayukh Mukhopadhyay
Author Profile Icon Mayukh Mukhopadhyay
Mayukh Mukhopadhyay
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Toc

Table of Contents (13) Chapters Close

Preface 1. Blockchain Basics FREE CHAPTER 2. Grokking Ethereum 3. Hello World of Smart Contracts 4. A Noob's Guide to DApps and DAO 5. Deep-Diving into Smart Contracts 6. Solidity in Depth 7. Primer on Web3.js 8. Developing a Cryptocurrency from Scratch 9. Enterprise Use Cases 10. BaaS and the Dark Web Market 11. Advanced Topics and the Road Ahead 12. Other Books You May Enjoy

Token versus coin


The title of this chapter is misleading. It has been made misleading on purpose. This has been chosen to make you realize the subtle difference between a cryptocurrency and a token in the perspective of Ethereum. When you explore the web to gain knowledge about cryptocurrency, you will observe that the terms cryptocurrency, coins, and tokens are often used interchangeably.

Figure 8.1 represents a classification that brings out the subtle differences between them:

Figure 8.1: Token versus coin

In simple words, the following four points summarize the difference between coins and tokens:

  • Coins are separate currencies on their own blockchain, while tokens are mainly based on a single blockchain variant.
  • Coins generally have a limited functionality, store-of-value, while tokens can store a complex, multi-faceted level of values.
  • Coins are mostly generated by mining a blockchain, while tokens are generated by executing smart contracts on the blockchain.
  • So, when we say cryptocurrency...
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