Meaning of ut. tokens vs Altcoins

BEGINNERS & HELP
#1

Hello all,
while it is very clear the meaning of BTC, ETH, and othe rmajor coins, I’m not really sure of the meaning of coins within their ecosystems.

I think it would be great to get an extra chapter within the course explaining in detail differences among utility tokens and Altcoins.

Is it that the only difference is about “running” or not on a proprietary blockchain? Is it arbitrary to each and own project to devine how to use the token? is the token always necessary for a blockchain project?

Thanks alot

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#2

Altcoin is the term for any other alternative coin to bitcoin. Meaning they have their own blockchain and features.

Token is more of an inside term for those “coins” that belong or live inside a altcoin or blockchain.

Like DAI on Ethereum, EOSDT on EOS, they are tokens.

They will design their token to be unique in some way, but they have to fulfill some standard rules so the token can have interoperability (100% compatible with other tokens or protocols).

Not always, but is the best approach to design you own rules over a valuable asset, you could program an smart contract that only manage Etherum has currency, but that will force your smart contract to only attach to the Ethereum ETH (Ether) rules.

Carlos Z

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#3

Thanks alot for your reply Carlos :slight_smile:

#4

I currently think in terms of Bitcoin. And then ethereum… when I think of Tokens I first ask what is the ERC number. I have a comptia a+ and almost network plus… I think the type of “token” is the protocol ERC20 = COIN or ERC721 = NFT TOKEN ect. There might be a ERC 0- 1000 and people are experiment with all of them didfently. Correct me if any of this made sense. Please. … The first thing before Tokenomics I ask tho is , what is the Proof of Work, stake, delighted, or proof of history… those determine the tokenomics. Please assist.