What is the Difference Between Crypto Coins and Tokens?

Gold coins of cryptocurrency lying on a table

The meteoric rise of cryptocurrencies has drawn both investors and casual observers. Since it is a new business, many new phrases refer to digital assets. The most common mistake is considering a crypto coin the same as a token.

What is a Crypto Coin?

Cryptocurrency, often known as crypto-currency or crypto, is any digital or virtual money securely encrypted to safeguard payments. A virtual currency that uses cryptography is used through the internet and is decentralized. 

However, Bitcoin was the original cryptocurrency and has remained the highest recognized cryptocurrency for more than a decade. Cryptocurrencies are protected by cryptography, which is based on the blockchain infrastructure. 

Bitcoin gold coins in hand

Thousands of cryptocurrencies exist. The most popular cryptocurrencies include Ethereum, Bitcoin, Solana, Cardano, Ripple, and Tether.

What is a Crypto Token?

A cryptocurrency token is typically thought of as a single digital currency used to define most cryptocurrencies on a broad level. Tokens with such a denominator are widely used to define fungible and transferable goods or services. 

These newly formed coins live on their native blockchains, each with its utility case. Blockchain is a digital and distributed ledger that distributes all cryptography data over a system of processors using blockchain technology. 

The most prevalent application of cryptocurrency tokens is for money raising, known as crypto crowdfunding. Crypto tokens are utilized for a variety of purposes, in addition to providing financial assistance.

Are Crypto coins or Tokens the Same Thing?

Tokens can represent commodities or deeds, while cryptocurrencies are virtual copies of money. Tokens can be purchased with currency, although certain tokens are worth more than others. 

Crypto tokens and different coins on bar charts

Consider a company’s stock. On the other side, “token” is simply a synonym for “cryptocurrency” or “crypto asset.” However, it has had several different implications, depending on the context. 

The first step is to define all cryptocurrencies that are neither Bitcoin nor Ethereum (although technically, they are also tokens). 

The second is to characterize digital assets on the blockchain of another cryptocurrency, like decentralized finance (or Defi) tokens. 

Decentralized exchanges can be considered because tokens can perform a variety of functions. They can, however, all work together. They can, however, all be exchanged or owned in the same way as any other cryptocurrency.

Which is a Better Investment, Coin or Token?

From an investment perspective, tokens are preferable to coins. This is true because tokens are supported by programs designed to perform specific activities. 

crypto coins on the sides of a blue cube

Tokens serve a specific purpose and will not become obsolete as long as the application is useful in the real world. Tokens have the potential to massively enhance your coin holdings if purchased appropriately. 

If you consider the Coin to be currency and the token an investment, you can expand your capital by carefully investing your coins in significant blockchain initiatives.

Each Coin opens a whole ecosystem of viable token investments, all of which can be converted back into the related blockchain’s Coin at any time. 

Crypto mining apps were built for users to allow them to mine cryptocurrency on their phones. All done without having to purchase expensive hardware can be used to invest in bitcoin. 

These apps let you join a pool, a group of miners that pool their processing resources and split the earnings they get from mining.

Key Differences between Coin or Token

Let’s look at the differences between tokens and coins so you know what you’re talking about the next time you make a comparison:

Bitcoin versus NFT a token

1. All Coins are Tokens

At their most basic level, crypto coins and tokens are very related, yet they are two separate concepts: all coins are tokens, and not all tokens are coins.

2. Coins have their Blockchain

The most significant distinction between a coin and a token is that coins get their “own” blockchain, while tokens typically rely on existing blockchains and smart contracts. 

They run on the blockchains of other cryptocurrencies, such as Ethereum. Ethereum, for example, is a blockchain. Ether is the Coin. Several additional tokens, like BAT, Tether, and BNT, function on this network. 

When the blockchain manages cryptocurrency transactions, the token relies on smart contracts. 

These are codes that allow users to trade or play with each other. Smart contracts are used on all blockchains. NEO uses Ethereum, and Nep5 uses ERC20.

3. Tokens are an Asset

Cryptocurrencies are similar to digital money. Tokens, on either hand, are an asset. Tokens can be purchased with currency, although certain tokens are worth more than others. 

Consider a company’s stock. However, because there are frequent constraints on where a token can be spent, it lacks the mobility of a currency. 

Simply defined, a token symbolizes what you own, whereas a coin symbolizes what you have the potential to acquire.

4. Significance of Crypto coins and Tokens

A token symbolizes what a person possesses, but a coin indicates what they can have the potential to own. Even before the advent of cryptos, tokens had a long record.

5. Purpose of Crypto coins and Tokens

Experts say that coins are the greatest option if an investor wants to purchase, whereas utility tokens can be used for services.

Gold crypto coin in front of a trading chart on a macintosh

6. Location not a Bummer for Crypto Coin

Cryptocurrencies do not need to be moved from one location to another. Only account balances fluctuate, but all records are kept on blockchains. 

When a token is spent, it goes from one location to another, such as NFTs (Non-Fungible Tokens).

7. NFTs are Crypto Tokens

The trade of NFTs is a terrific example of this (non-fungible tokens.) Because they are one-of-a-kind, any changes in possession must be managed manually. 

NFTs are comparable to utility tokens because they have dynamic or artistic value, but you can’t obligate any services with them.

8. Blockchain and your Transactions

Crypto coins are different from coins in that they do not move; only account balances change. Your money does not move anywhere when you transfer money from one bank to another. 

The bank altered both accounts’ balances while keeping the fees. With blockchain, the balance in your wallet changes, and the transaction records it.

9. Difficulty in Minting Crypto Tokens and Crypto Coin

A cryptocurrency token is less difficult to make than a cryptocurrency coin. A programmer can use a template technique on their preferred blockchain to create a new crypto coin.

Ethereum coin with a wallet and big graphics card

Examples

Some famous crypto coins include Bitcoin, Cardano, Litecoin, and Dogecoin. Common tokens include Tether, Shiba Inu, and Uniswap.

Conclusion

Knowing cryptocurrency markets can be difficult, particularly for newcomers. Knowing the differences between different kinds of cryptocurrencies can give you wiser danger and help you make smarter choices in this unpredictable ecosystem.

Meta sells Diem assets to Silvergate in $200 Million | What happens now?

Diem written with a out sign on Meta with a the Facebook logo in background

Diem, which caught all the eyes of the people since it came out as Libra in 2019 and Mark Zuckerberg defending it in front of the chamber of commerce for a long time, has taken a serious turn, Meta sells Diem.

According to The Wall Street Journal’s report on Tuesday, it is said that Meta(formerly Facebook) is selling its technology assets to the Silvergate capital bank for about $200 million ($180 million). Meta is one of the founding companies of Diem Association (formerly Libra Association) along with 25 other investors.

Later on, Bloomberg also reported that Meta Inc. was considering selling Diem assets to return the capital to their investors, who were backing them through the whole project.

Meta logo in Blue color, founder of Diem Project
Meta sells Diem to Silvergate Capital

Why did Meta step back?

There is still not a proper answer to the question. However, yes, it seems irrational to first step into digital payments while defending it for the longest of two years and then suddenly dropping the pin by accepting defeat in the cryptocurrency world.

But we might get an answer to this question of Meta stepping back if we look at all the previous incidents. Spoiler! Yes, things have been absurd.

First, Meta (at that time Facebook) comes up with this stablecoin known as Libra. Initially, Libra was supposed to be a new coin backed by a bucket of several cryptocurrencies.

Soon after Libra came into the limelight, it got into some serious laws scrutinies. And in the first year, some big investors, such as PayPal, Mastercard, and Vodafone, left the project. 

This was one of the many reasons Libra Association switched to Diem to get a fresh start. However, just name wasn’t the only change that made up to the project.

Diem also switched their backing up reserves idea. Instead of a bucket of cryptocurrency Diem — the stablecoin was only backed up with USD with the association of Diem blockchain. And Meta gave the big news of Pilot Version of Novi Launch in the US and Guatemala with USDP by Paxos, as cryptocurrency and under the crypto custody of Coinbase.

Probably Meta, the Silicon Valley group, sells Diem to save their $85 billion per year advertising business model and digital social media channels that include Facebook, Instagram, and WhatsApp, which have been getting under the shadow of law scrutiny.

What is the Future of Diem?

This big step narrows down to one big question that keeps striking the chord in heads. What would be the future of Diem now? 

It is too soon to claim anything yet, but Silvergate Capital and Diem Association have repeatedly refused to comment on this mutual deal between both parties if we look at the insights. 

This puts the whole Diem project on the radar. However, Silvergate bank has been dealing with major cryptocurrencies in the past, and there are good chances that they will carry on with this Diem project.

Until the next news, we have our fingers crossed to hear more about this project, but one thing is quite certain when Meta sells Diem. As Meta and the whole Diem project have shifted their decisions in the past, investors and users are losing their interest in Diem.

In the comment section, let us know what you think would happen to Diem now or if it was a good step by Meta?

Can I Mine Diem? | Here is Everything that you Should know

a mining rig on the back with question of diem mining

As the clock is ticking and after the Novi launch in the US and Guatemala, Diem (formerly Libra) is getting into the limelight. With all this attention, many people have been asking one simple question — Can I mine Diem?

I understand the confusion, as Diem is a cryptocurrency, and most of them (such as Bitcoin and Ethereum) can be mined.

But where do we stand when it comes to Diem? Let’s cut to the chase and see whether you can mine Diem or not?

Can I mine Diem?

No, you can not mine Diem because it’s not like any of the regular cryptocurrencies; instead, it is a stablecoin that’s backed by USD. 

But then the question comes — why can’t you mine Diem as the rest of the cryptocurrencies, which can be mined like doodling, right?

Keyfactors of Diem with mining
Key Components of Diem and Mining

Why can’t you mine Diem?

To understand why you can’t mine Diem, you have to understand how mining works! 

Other cryptocurrencies use a distributed ledger called blockchain that verifies all the transactions, and miners are the nodes that help verify the those (and get a reward in return).

In the case of Diem, it is not a regular blockchain. Instead, Diem runs on a permissioned blockchain by the Diem Association. In simple words, this means that only authorized entities such as wallets and exchanges are allowed access through Diem’s blockchain.

This means there is no need for miners to verify the transactions, and it can prevent scams by closely working with local authorities if needed.

Bottom line

Diem is different from the rest of the cryptocurrencies, such as Bitcoin. You can learn about all the major key differences between Diem and Bitcoin. But Diem doesn’t require miners, and there is no way anyone can mine it. 

So, it is better to wait and keep it as an option for transactions and investments.

What is Paxos Dollar or USDP? Important for Novi

Paxos Dollar written on the a white background with logo

Cryptocurrency marked the rise of decentralized assets. But in the cryptocurrency world, as Novi launched in the US and Guatemala, you will ask What is Paxos dollar or USDP? As you can only use Novi with Paxos dollar for now.

Apart from Novi, you can also invest in USDP. A collateralized stablecoin, created by Charles Cascarilla and Rich Teo for stabilizing the U.S dollar with the help of blockchain technology.

Furthermore, Pax Dollar creates a frictionless network worldwide to enhance the bigger financial ecosystem. Its main goal is to build a future in which you can transfer your digital assets, commodities, and securities anywhere at any time, along with high levels of accessibility and flexibility.

Table of Contents

  • What are Stablecoins?
  • What is Paxos dollar?
  • History of Paxos dollar:
  • Benefits of USDP crypto over other cryptocurrencies
  • Drawbacks of Pax dollar
  • Is the PAX dollar network secured?
  • Where is the PAX dollar available?
  • Conclusion
Paxos dollar with the logo in between.

What are Stablecoins?

Since crypto could not approach their consumer’s concerns, it demanded a mechanism to maintain a moral norm of crypto value that should be fixed.

So experts introduced stablecoins to fix the price of cryptocurrencies and minimize their volatility. As a result, the prices of cryptocurrencies were set to other financial resources like gold and the U.S. dollar.

What is Paxos Dollar?

Paxos dollar is the world’s leading regulated stablecoin, as per Paxos Trust. It is a flat-collateralized blockchain cryptocurrency that was suggested to provide border-free transactions with extremely little volatility rates.

Moreover, Paxos dollar or USDP crypto is an ERC-20 token set up on the Ethereum blockchain technology. According to Ethereum, Paxos is the world’s best programmable cryptocurrency that aids you in sending it to anyone by demanding a modest commission.

History of Paxos Dollar

The history of Paxos Dollar began in September 2018 when the New York-based company Paxos Trust, specializing in blockchain technology, introduced a new stablecoin called the Pax Dollar. It was brought in to meet a reliable substitute for blockchain assets.

Moreover, Paxos was founded in 2012 as the itBit, a Bitcoin exchange. Later on, the company renamed itself Paxos Trust in 2015. During the same period, New York’s Financial Services Department gave it a trusted charter for offering its services and products in the digital asset world.

USDP with a big logo on left side.

Benefits of USDP Crypto over other Cryptocurrencies

As Paxos dollar was constructed on an ERC-20 token, it can be deposited in an ERC-20 wallet, and but they are also part of the pilot program for Novi wallet partnering with Coinbase

Additionally, there are multiple advantages of the Paxos dollar over other cryptocurrencies. Out of those, here are the few major ones:

  • Paxos stablecoin can only remain in circulation as long as US dollars are held in reserve.
  • The Ethereum technology stores data in inter-chained blocks; it eliminates the chances of any intervention by the third parties and delivers a much more environmentally safe atmosphere.
  • With decentralized computing and a 24 hours support program, PAX dollar gained better recognition.
  • The New York State department monitors this stablecoin indicating a powerful trust boost to the PAX dollar stablecoin over other crypto coins. 
  • Paxos deals its transactions for 1:1 USD dollars. It means that 1 Paxos equals approximately 1 dollar, conferring to the Paxos company.
  • The Paxos dollar also guarantees 100% cash reserves.
  • PAX is a global digital resource, which means it can carry out local and international transactions.

Drawbacks of Paxos dollar

Alongside the great benefits, Pax dollars also comes with some drawbacks worth considering. 

  • Pax dollar is not available on all exchanges.
  • It is downplayed by the competitor’s stablecoins.
  • Pax dollar may not favor in value.

Is the PAX dollar network secured?

Yes, the USDP crypto is a much safer trading option. Once redeemed from your PAX account, the coins are automatically wiped out.

Also, using the PAX dollar allows for much better and secure transactions. If the PAX smells any security threat, it pauses the transactions and saves your currency.

In addition to that, Paxos is the first crypto company ever to secure the SOC 2 Type 2 certification. Thus, supporting its enterprising customers effectively. 

Grey Paxos logo and PAX USDP.

Where is the PAX dollar available?

USDP crypto can be bought at the following exchanges:

  1. Bittrex
  2. Binance1-inch exchange
  3. Bit thumb global
  4. Dignifex
  5. VCC exchange

Conclusion

USDP crypto is currently one of the most popular crypto stablecoins today. It is the medium to produce low volatility exchanges without worrying about the market variations.

The original strength of the PAX dollar over other cryptocurrencies lies in its full backing of USD. This sole benefit is sufficient to wrestle with other popular cryptocurrencies.

Novi Launch in the US and Guatemala | Amazing things are getting real

Novi written with white alphabets on a purple shade

After two years of rumors and breathtaking news, Meta has finally announced the launch of Novi in the US and Guatemala. Yes, a digital wallet.

It has been exactly two years to the announcement that it will be available. Finally, the wait is over; now that Novi is available in US and Guatemala. However, it is launched on a small scale on a trial basis. It will be made available on a larger scale once its trial period reaches success.

Novi written in white letters on purple background.
Novi is now Available in US and Guatemala on Trial basis.

Important to know:

Although the Novi Wallet is now officially there, this does not mean that the Diem Currency is here! If someone is offering to buy Diem at this point (Nov 2021) it’s a scam.

The only currency you can trade is the Stablecoin USDP (formerly known as Paxos).

Here are Some Key Factors from the Novi launch in the US and Guatemala.

  • Novi is backed up by consumer protection and essential regulatory control to avoid fraud and other potential pitfalls. Novi makes sure of the security of its users. Each customer at Novi gets verified with a government ID before signing up.
  • Novi is available in US and Guatemala for the test launch only. The primary function of the test is to observe the functionality of Novi and if any improvement should be made that can provide ease to users.
  • Facebook financial head David Marcus has said that for the test lunch, users are allowed to receive and send money through USDP stablecoin, which is operated by Paxos. Novi users can deposit dollars, convert them to USDP, and withdraw the cash in their local currency.
  • For its test launch, Novi will be using a formerly established currency that is Pax Dollar, which is supported by Paxos. Paxos is a financial service-providing company that is New York-based. It is used for protection purposes and to build the trust of their customers by protecting their funds.
  • Although the announcement did not give any hint of when the Diem (formerly Libra) will be live again. It is a formerly introduced currency by Facebook. Diem faced major criticism after its launch and, until now, is facing regulatory approval.
  • Now that Novi is available in the US and Guatemala, the users of both states can enjoy a free transfer from person to person and profit from commercial relationships.
  • For the ease of users, the digital wallet will be made available as a mobile app on both Google Play and Apple’s App Store. However, there are a few exceptions. For now, the mobile app of Novi is not available for the residents of some countries that include; US Virginia Island, Nevada, New York, and Alaska.

Final Words

Previously Novi Wallet partnered with Coinbase, which also gave us some important insights from who Novi would work, don’t forget to read that.

I hope this helps to start your journey with the Novi. If you want to keep updated with Diem, make sure to subscribe to the monthly newsletter.

Novi Wallet Partners with Coinbase: is it a Big Step?

Cellphone with Novi Stablecoin Wallet on Coinbase Account

Gosh! When will we get our hands on Diem? Surely, it has been a while, but finally, we get to hear something from the Diem Association, Novi wallet from Facebook has partnered with Coinbase, a US exchange, to provide the custody services for Novi wallet.

However, that’s not the only major point given out by the media. I’ll tell you all the following and necessary points that you must know from this small hunch of news.

Novi Wallet logo written on a phone with Facebook logo behind the Novi wallet.

Key Points to Takeaway

Here are some of the significant elements of the Novi Wallet October update.

  • The pilot program for Novi wallet has gone live in the US and Guatemala. You are free to download and use it from Google play store and Apple AppStore if you are in one of the regions.
  • However, there is no major news on the Diem yet.
  • Pilot program users can start trading the Paxos Dollar (USDP) via their Novi accounts.
  • All the Paxos Dollar (USDP) will be held in Coinbase custody. If you are a user, you can transfer the USDP instantly, securely, and free of cost.

What’s Happening on the Diem Part?

It was 2019 when Facebook shocked us with the news of digital wallet and stablecoin, their next big project in the crypto world. Initially, the stablecoin was called “Libra.”

At present, they have given out the digital wallet, but what about the Stablecoin?

About two years back, Libra Association pointed out that they are going after “The Libra Reserve,” a collection of low-volatile assets from reputable banks.

And VOILA! Soon after this news, we came to know that Libra Association had lost 8 founding members, including PayPal, eBay, and MasterCard. It was the right time when they chose to go with a different name, “Diem.”

As the Diem came on the radar, Facebook’s strategies also shifted and decided to peg the Diem with the US Dollar, similar to USD Coin or Tether — 2 years passed further, and still, we are not near the launch.

Although in the recent launch of the Pilot program, Diem got away with the attention of Novi wallet, but a press release from Facebook pointed out they are not abandoning the “Diem.“

Instead, they intend to shift Novi to the Diem payment network once it receives regulatory approval.

However, the big question that leaves us nowhere is either anyone interested in Diem anymore? Let us know what do you think in the comment section below.

Is Safemoon Crypto still worth it? Should I Buy Safemoon?

safemoon crypto logo written with white letters and a green logo on a dark background

Cryptocurrencies are not an alien concept anymore. Several crypto investors are always looking to put something in the bucket of the digital currency world.

However, volatility has always been linked with the crypto world, but now things are changing around — a piece of great news for all the crypto enthusiasts out there. A new cryptocurrency that gets into the eyes that might turn the tables another way around is called Safemoon.

Today I will help you with all your questions regarding this new cryptocurrency, whether you should buy Safemoon or let it pass as a spoof. Either way, in the end, you will be all aware of Safemoon, and who knows where your next investment would land?

Continue reading “Is Safemoon Crypto still worth it? Should I Buy Safemoon?”

Can I mine Cryptocurrency on a Phone? Get Rich with Your Phone?

Mining cryptocurrency on a phone in front of a minig rig.

Let me ask you a question if there is something most essential to you, what would that be? Your phone, right? And what if you can mine cryptocurrency on a phone?

Yes, it is possible to mine cryptocurrency on a phone, but there are numerous problems due to ineffective software and graphical processing. Also, mining cryptocurrency on the phone would never be as impressive as on a traditional mining rig. But you can mine and earn some extra coins.

Continue reading “Can I mine Cryptocurrency on a Phone? Get Rich with Your Phone?”

What Is Ethereum | Difference Between Ethereum And Bitcoin?

bitcoin and ethereum are placed on a balance to be differentiating with two ethereum coins and one bitcoin.

From the last year, the crypto-world is taking a slight drift. There was a sudden drop in the market, which partially crushed most of the crypto-enthusiasts. However, as the market is getting back, Ethereum has taken the spotlight.

Even though Ethereum and Bitcoin are the most popular cryptocurrency and works on a similar blockchain, but there are many differences come along. 

So, the question that pops in mind is how and why Ethereum is popular, and what is the difference between Ethereum and Bitcoin? And clear up that space; we are here to help.

Ethereum gold coin with Bitcoin gold coin

Difference Between Ethereum And Bitcoin

Ethereum and Bitcoin get toe-to-toe. When we look at the similarities, there are several, such as both use distributed ledgers and are decentralized, meaning not issued by any authority.

Bitcoin is a cryptocurrency that can do one thing perfectly, but Ethereum is like an intelligent platform that can go a long way while keeping decentralized finances in consideration.

However, If we look at the differences, there are several, which are as follows.

Bitcoin gold coin is right next to Ethereum gold coin and few other silver coins.

1. Smart Contracts

Smart contracts on Ethereum are something that is one of the significant differences. It is a set of codes that run on the Ethereum blockchain, which allows you to run decentralized applications or dapps.

Consider these dapps as something similar to your phone applications, but they aren’t controlled by any authority, which gives you privacy in your financial decisions.

2. Increased Transaction Speed

Surprisingly the transaction speed of Ethereum is slightly more than Bitcoin. Ethereum can process 20 transactions in a second with a confirmation time of 5 minutes. While Ethereum 2.0 can process 10,000 transactions in a second.

3. Improved Security And Anonymity

Bitcoin is in business since 2009, but Ethereum came into the market in 2015. Since it came after Bitcoin, they tried to cover all the aspects of Bitcoin. Also, the Bitcoin network doesn’t send Bitcoins.

Instead, it secures data with the protocols of POP (Proof of Proof) and POE (Proof of Existence), which is why it is more secure and anonymous than Bitcoin.

A lock image in the centre with a purple circle. Shows the security of cryptocurrency.

Final Remarks

To sum it up, Ethereum is one of the popular cryptocurrencies that have significant progress over time. People not only use it as a medium of payment instead, but it is also quite popular within the business world, which is why most of the NFTs run on Ethereum.

Diem is also getting a lot of eyes from the people around if you like to see our guide on Diem vs. Bitcoin to understand the key differences.

Hopefully, this post would clarify all the questions related to Ethereum and the key differences with Bitcoin, but if you need anything else, drop by the comment section below, and we’ll get back to you right away.

What Is Blockchain Technology? Full Guide To Blockchain

A white background with blue colored encrypted locked devices in a network.

Blockchain is a decentralized and distributed ledger that keeps all the cryptography information distributed across the network of computers connected to the blockchain technology.

Additionally, there are different blocks on the chain that represents various transaction information. When a new transaction occurs from anywhere in the world, the record is added to the participant’s ledger.

White colored background with purple links and Blockchain written in center.
A network of Blockchain

Blockchain Technology For Beginners

We know it can be a little complex for beginners to understand the whole blockchain, but don’t worry; we will help you out.

In simple terms, you can consider blockchain as a bank, where everyone can send money without any complications of authorities keeping an eye on you and without any extra bank fees.

Meaning with blockchain, you are your own bank, and you have the authority over your money, and you can perform transactions easily, just like you send emails.

However, it is not that simple as some complex things might seem a little tricky at first, but as you get the hang of it, things would be much straightforward.

The process of blockchain from buyer to the seller.
The process of Blockchain

Blockchain works on blockchain technology, which is an unchangeable and unhackable medium to record your transactions.

On average, there are almost 500 different bitcoin transactions along with the cryptographic information on each “block” of a blockchain. 

The information on these blocks contains the links to the blocks and the information of previous blocks and forms of chain that would be used to proceed with the transactions, Thus termed as the blockchain.

Types Of Blockchain Technology

To understand blockchain in a much better way, you should learn the four different types of blockchains.

  • Private Blockchains
  • Public Blockchains
  • Hybrid Blockchains
  • Sidechains

1. Private Blockchains

The blockchains that are restricted and are not accessible by everyone are called private blockchains. People who want to join such blockchains have to take permission from the system administrator.

A single entity holds these blockchains, and they are centralized.

Ripple (XRP) is a common example of private blockchain.

2. Public Blockchains

The blockchains that don’t require any permission and anyone can access them with their will are called public blockchains. 

These are decentralized, and anyone can request validation for their transaction from miners, who earn rewards for verifying the transaction.

Bitcoin, Ethereum, Litecoin blockchains are examples of a public blockchain.

Ethereum and Bitcoin go toe-to-toe. Follow the link to go through a complete guide.

3. Hybrid Blockchains

The mixture of a public blockchain and private blockchain is called Hybrid blockchain or sometimes as a Consortium. 

They provide some extra features that might not come with them individually, such as Dragonchain and web-foundation.

IBM food trust is an example of a hybrid blockchain.

4. Sidechains

A sidechain is a type of blockchain that works along with the main blockchain. It usually helps in the transfer of information from one chain to another between two blockchains to improve efficiency.

Liquid Network is an example of sidechains.

A purple image with white colored network of different devices.
A network of devices

Final Remarks

Blockchain technology is a little tough to understand at first, but it is totally worth it afterward. We hope this post would be helpful for your understanding, and now your questions related to blockchain are answered.

Apart from Ethereum and Bitcoin, there is a new form of cryptocurrency called stablecoins, which are also getting a lot of attention.

In case we missed something. You are welcome to ask in the comment section below.