Re:Is There a Cryptocurrency Bubble? Just Ask Doge
by sl4i6j3o4i98g on Saturday September 16, 2017 @11:32PM
(#15268110)
CryptoAssets (ICO, token, etc) vs CryptoCurrency
CryptoCurrency is the base primitive of the blockchain, that is consumed to store transactions permanently, as well as to reward the block creators. CryptoAssets are usually extra metadata in transactions that updates some state. The USDT token actually runs on the bitcoin blockchain, on an early 2nd layer network called OMNI.
ICO takes the cryptoasset further and issues some 2nd layer token and then resell that for the underlying cryptocurrency. Its a magic bean sale, paid with gold coins.
An ICO on ethereum, for example, is simply a database entry that says your address holds some number of tokens in a contract. You do not own them, you are just tagged as having a certain number.
Most contracts have a suicide clause. One authorized (we hope... ooops) method call could nuke that value instantly.
With a cryptocurrency, you control the value stored in unspent transactions. With this you own the private key.
No external party can remove those funds with that private key.
CryptoCurrency is the base primitive of the blockchain, that is consumed to store transactions permanently, as well as to reward the block creators. CryptoAssets are usually extra metadata in transactions that updates some state. The USDT token actually runs on the bitcoin blockchain, on an early 2nd layer network called OMNI. ICO takes the cryptoasset further and issues some 2nd layer token and then resell that for the underlying cryptocurrency. Its a magic bean sale, paid with gold coins.
An ICO on ethereum, for example, is simply a database entry that says your address holds some number of tokens in a contract. You do not own them, you are just tagged as having a certain number. Most contracts have a suicide clause. One authorized (we hope... ooops) method call could nuke that value instantly.
With a cryptocurrency, you control the value stored in unspent transactions. With this you own the private key. No external party can remove those funds with that private key.