By increasing the level of popularity for different blockchains like , , and WAVE we’ve been witnessing a common mistake among these fans. in this article, we are going to take a closer look at the differences between three big topics and see what each of them mean and how can be used in crypto World.
Blockchain
You probably have an overall understanding of what is and how it is being used these days in different Industries especially in the field of online currencies. But for the sake of this article and as a reminder let’s take a look at its description:
will be a chain of data blocks that can be increased and attend in new block, after being approved by certain number of chain owners. Therefore, everyone who is a part of this will have a copy of the whole chain and each time a new block is going to be added. it will first be checked not only by the previous block on the same instance of the issuer but also by many other instances.
Usage
and that is being used as the transactional foreground usually are being used by big companies or being supported by a specific purpose. usually creating a completely new is not a proper use for smaller startups like ICOs. in other words, 99% of all ICOs are usually not based on a new . because the cost of creating one and maintaining it is great and usually it is not efficient for smaller startups or newborn businesses. this will lead us to the second part of this article which will be Smart Contracts.
Smart Contract
On July 30, 2015, We’ve had a new big technology revolution based on concept founded that not only covered many important aspects of but also brought a very powerful tool for creating secured applications in a decentralized way. this technology was and the tool that it brought was smart contracts. this term and condition modeling tool which will be written in solidity language created a masterpiece Foundation for other developers or small companies to benefit the advantages of a complete without the necessity of creating one on their own.
Usage
One of the biggest usage eras for smart contracts, as we’ve mentioned above, is in small startups. during past few years, there are many new startups which have been created on by designing their own custom contracts and if we want to be a little bit more specific on categories we can mention share issuing and crowdfunding as main use cases that these smart contracts have been used. when a contract is developed by solidity language the next step is deploying it to the real or one of the fake blockchains. the deployed smart contract will be called a which also moves us to the last part of this article that will mainly be based on it.
Token
on this article so far we have looked to the nature of as well as how it can be related to smart contracts. we have also found out that smart contracts are the fundamental logic behind , knowing the last section we’re going to take a look at what a is and how it can be used by companies and how it is different from .
one of the biggest mistakes that many users make as well as many startups have done during the introductions is misusing the term “coin” instead of a . is a , is a and probably a few numbers of startups are based on . but that doesn’t mean every single can be considered as a coin and start-up companies which developed smart contracts or decentralized applications can simply use the term of the coin instead for their creation.
Usage
If is a fundamental part and smart contracts are development Stage tools to create one, we can consider as the final product for crypto base startups. please note that it doesn’t necessarily mean all crypto-based startups are working based on developing a as their final product, but most commonly that is the main for them. In other cases, there probably is another product that somehow can be connected to this and be improved in term of security or interactivity. therefore for this last section, we are going to take a look at the different type of that are being used in crypto-based businesses.
Different Type of Token
Crowdfunding: If you have a startup that needs fundraising, options like Kickstarter and Indiegogo are always on the table, but sometimes you like to do this is exclusive and decentralized way and that’s where erc20 bring a lot of benefits to you. the good is organization has open-sourced erc20 and as a result, any small company or start-up that requires fundraising can easily go to their GitHub repository and use their solidity smart contract to create their own . if you’re interested to learn more about this please click on the link below:
Startup Shares: Some startups, mainly in the field of IT, are seeking for investors and do not have nonprofit or public benefit purpose that they raise money in a crowdfunding way. They need to issue some type of share to support the idea and in the future when they made money from their idea they will increase the value of each share. This usage is mostly close to a corporation with much less paperwork and faster transactions. If you are interested, for more information you can either contact me here or via my LinkedIn account or take some courses on Udemy or YouTube on how you can develop your own and customize your own smart contract to make it more like a stock system than a crowdfunding .
Security and Product Integration: Startups that use in this way have a bigger chance of success than the startup as crowdfunding or their company’s share. because in the other two way, the value should be defined by another product or another activity and then part of this value should be transferred to the to make people interested in it. but in this method, the value will be billed by the itself. and sort of like decentralized exchange systems or virtual gateways that work based on technology, also in some cases base can be some of the examples for this usage of .
*** Important note: In this article, we are not going to look through the security because I think they are a very big and wide field of discussion and probably in future, I will add another article regarding the security and I will compare them exclusively from .
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Published at Sun, 26 May 2019 18:24:28 +0000
