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Saturday, 01/06/2018 10:50:39 PM

Saturday, January 06, 2018 10:50:39 PM

Post# of 49370

How do you file a ICO without a cryptocurrency - you do understand that ICO means Initial COIN Offering.



Tokens are a representation of a particular asset or utility, that usually resides on top of another blockchain. Tokens can represent basically any assets that are fungible and tradeable, from commodities to loyalty points to even other cryptocurrencies!

Creating tokens is a much easier process as you do not have to modify the codes from a particular protocol or create a blockchain from scratch. All you have to do is follow a standard template on the blockchain – such as on the Ethereum or Waves platform – that allows you to create your own tokens. This functionality of creating your own tokens is made possible through the use of smart contracts; programmable computer codes that are self-executing and do not need any third-parties to operate. It really is super cool! (See also: Guide to Cryptocurrency Wallets: Why Do You Need Wallets?)

Tokens are created and distributed to the public through an Initial Coin Offering (ICO), which is a means of crowdfunding, through the release of a new cryptocurrency or token to fund project development. It is smilar to an Initial Public Offering (IPO) for stocks, with critical distinctions which are explained in the article Crypto ICO vs. Stock IPO: What’s the Difference? Many are crazy over ICOs as they represent a great way of identifying interesting projects. (Read more: Beginner’s Guide to ICO Investing: How to Participate in ICOs)

Fun Fact: A template for token creation is wonderful since it provides a standard interface for interoperability between tokens. This make it so much easier for you to store different type of coins within a single wallet. An example is the ERC-20 standard on the Ethereum blockchain, which has is used by over 40 tokens


Summary
The main difference between altcoins and tokens is in their structure; altcoins are separate currencies with their own separate blockchain while tokens operate on top of a blockchain that facilitates the creation of decentralized applications.




https://masterthecrypto.com/differences-between-cryptocurrency-coins-and-tokens/

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