Cryptocurrency is a term that is emerging into global popularity with its agenda of contributing to decentralization in the right way. But, what is cryptocurrency? Cryptocurrency is a digital currency that enacts fiat currency and serves as a better alternative to real cash. This digital currency can be used for a transaction, buying goods and services.
Cryptocurrency is built on a public distributed ledger known as the blockchain that secures the transaction with the help of cryptography. This is why crypto is a better alternative to fiat currency in terms of security. It is divided into 2 categories- altcoins and tokens. What do we mean by these terms and is there any difference between them? Let us help you with these categories through this blog!
What are the two major subdivisions of cryptocurrency?
Bitcoin was the first coin in the digital space as a cryptocurrency with its native blockchain and any other coin made after bitcoin is a cryptocurrency and is categorized as altcoins and tokens.
Blockchain plays a major role in distinguishing altcoin from token. Altcoins have their native blockchain whereas tokens are built on another coin’s blockchain, like Litecoin and Dogecoin. Caizcoin however, functions on its own Blockchain.
Alternative coins or crypto coins are coins that have a bitcoin-derived blockchain. As the name suggests, they are an alternative coin to bitcoin. These altcoins are bitcoin’s blockchain with some alterations that bring out some new features of the coin. Some coins are based on bitcoin’s blockchain.
A subcategory of altcoin is a coin that has its native blockchain. These coins are not built on bitcoin’s mechanism and have derived their blockchain. The coins under this have a blockchain that represents and supports their currency. One of the major examples of this subcategory includes Caizcoin.
Tokens are digital assets that are made for specific use. Unlike coins, these tokens do not have their native blockchain with altered features. Tokens are built on a crypto coin’s blockchain. Apart from transactions and payments, a token is used for investment and storing values.
It is created from an initial coin offering (ICO). Tokens of Caizcoin are built on an Islamic Blockchain that is used as one true method of global payments. Therefore, tokens offer a way of investment that gives good profit in return.
What is Caizcoin?
Caizcoin is the first Islamic-compliant Blockchain that skillfully joins the chords between Islamic financial laws and the western world. It is a decentralized financial medium that lets you transact any time, 24/7.
Its transaction time is very less as compared to the leading Cryptocurrencies with a duration of just 0–3 seconds and is capable of 3000 transactions per second!
Conclusion- Altcoin or token, which is better?
Both the altcoin and tokens are useful in their own ways and none of them is made to be better than the other. However, here are the different aspects of tokens and coins for a better understanding-
1. A coin is distributed through mining and a token is distributed through ICO.
2. Coins are specific for payments processing whereas tokens are used for multiple requirements.
3. Coins are difficult to be built because of the various algorithms and coding required. Tokens are easy to be created as they’re built on an existing coin’s blockchain.
Apart from this, Caizcoin is a Cryptocurrency that is secure, easy to use, and automated. Therefore, these are the key differences between an altcoin and a token.
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Caizcoin Official Website: https://caizcoin.com/