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Manoj Pandey
2024-04-18 10:34:32
Within this digital landscape, we have two key players:Cryptocurrencies: These are the original residents, so to speak. They're the native currencies of their own independent blockchains (think secure digital ledgers for transactions). Bitcoin and Ethereum are prime examples, each with its own blockchain. These currencies can be used for things like buying coffee (at stores that accept them) or powering applications built on their blockchains.Crypto Tokens: Unlike cryptocurrencies, tokens don't have their own blockchains. They piggyback on existing ones, often Ethereum. Think of them as special-purpose tools for specific functions within a blockchain ecosystem. There are different types:Utility Tokens: Grant access to services or features within a blockchain application (like buying in-game items).Security Tokens: Represent ownership of real-world assets (stocks, bonds) in a digital form.Governance Tokens: Give holders voting rights within a blockchain project or platform.In a nutshell: Cryptocurrencies are the established governments of this digital nation, while tokens are the diverse applications and services that operate within these systems.

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