Digital Currencies: Cryptocurrencies and ERC20 Tokens

 

What is a virtual or digital currency?

It is a type of money that works in the digital world or cyberspace, which is issued and controlled by its developers and by a community of users and followers. There are two types according to the technology used in its emission and operation:

  • Cryptocurrencies.

  • ERC20 tokens.

What is a cryptocurrency?

A cryptocurrency is a virtual currency designed to function as a medium of exchange. Characteristic:

  • They have their own blockchain protocol, bitcoin being the first and most recognized.

  • They use encryption techniques to carry out transactions and store data.

  • Decentralization: They are not controlled by any institution, person or government.

  • No possibility of forgery: A cryptographic system protects users.

  • Transactions are irreversible: Once the payment is made, there is no possibility of cancellation.

  • Privacy of use: It is not necessary to reveal your identity when doing business.

Major cryptocurrencies:

If you go to the blockchair.com site on your mobile or computer, it presents a list of the main crypto currencies, the first is bitcoin, the cryptocurrencies that emerge after bitcoin have their own operating protocol, similar or operationally broader than the protocol of bitcoin. Among the most outstanding for its total value in the market:

What is an ERC20 Token?

An ERC-20 token is a Smart contract deployed on the Ethereum blockchain, which has a pre-established data structure that allows a variety of mathematical functions such as the Mint function and the Send function:

  • Mint function: Creates a total supply of coins in the account or address of the owner of the contract.

  • Send function, sends or transfers a certain number of tokens to other accounts or addresses.

  • Among the most outstanding for their total market value:

Observations:

  • If you add the market value of the 8 cryptocurrencies it is 1,961 billion USD and the 8 ERC20 Tokens, it is 180 billion for a grand total of 2,141 billion USD.

  • In the volume or amount that is sold every 24 hours, in cryptocurrencies we have 51 billion USD and Tokens 75 billion, for a grand total of 126 billion.

 
Carlos SampsonComment