Token or coin?
There is only one coin in the Bitcoin blockchain, btc, and the network assumes only exchange transactions of this coin. The situation with ETH changes dramatically. Let’s sort it out. The Ethereum network is used for the following types of transactions:
the transfer of an ETH coin between addresses;
smart contract creation and adding its code to the blockchain;
token creation with the help of smart contracts;
ensuring the functioning and execution of the condition of the smart contract.
It’s time to understand the difference between coins and tokens; it’s important to understand the fundamental difference between these concepts.
A coin is a cryptocurrency created within the blockchain. It is the main and only coin of the network and is used for mutual settlement and payment of commissions within the network.
A token is a digital asset, which is related to a specific project and is issued based on a cryptocurrency using the technology of a smart contract.
Based on the Ethereum blockchain platform, it is possible to create tokens of different standards, such as ERC20 or ERC721. A token standard is a set of rules that helps developers simplify and improve the process of token creation based on a particular blockchain.
ERC20 is a digital asset developed and used only within the Ethereum blockchain. Tokens of this standard are fungible and use a specific smart contract that tracks this token’s transactions across the network.
A parallel with the real world can be drawn here: ERC20 is similar to banknotes or metal coins. They can be used to buy goods and services. For example, a $100 banknote is the same as another $100 bill, they are fungible.
There are other cryptocurrencies in every blockchain. They will already be called a token. And so our main governance token of the TigerUP meta-universe is TIGERUP.
TigerUP ecosystem tokens are built on the BNB Chain blockchain. It is one of the major networks, taking 4th place in the world ranking of cryptocurrencies. It has several advantages over other networks: fast and cheap transactions, throughput is 20 times higher than that of Ethereum. This means that the network can withstand heavy loads when everyone starts making transactions at once. BNB coin is the main cryptocurrency in this blockchain. This means that to make transactions in the TigerUP.app, you need to have some BNB in your wallet, otherwise you will not be able to interact with the app or make a transfer.
Never forget: There are risks in any type of investing! Be careful and trust only reliable sources!