As the latest block chain technology became widely known and published, hundreds of cryptocurrency were created. In a block-chain ecosystem, cryptocurrency serves as a means of delivering monetary value.
Basically it is the means by which the concept of the Distributed Ledger is made possible technically, and from the viewpoint of the block-chain business, it also serves as an economic key to driving specific activities of internal ecosystem participants.
The block chain technology is the core technology of the 4th industrial revolution, in which a lot of capital and talent are invested. So we need to think about and understand the various aspects of cryptocurrency that is based on block-chain technology.
In recent, FINMA in Switzerland and the SEC in the United States have attempting to differentiate the type of cryptocurrency according to whether the cryptocurrency has a securities nature and to incorporate it into existing financial laws.
What are the criteria for categorizing cryptocurrency? Let’s look at classification criteria from various perspectives.
cryptocurrency is called ‘coin’ or ‘token’.
The dictionary definition of a coin is “A flat, typically a piece of metal with an official stamp, used as money”. In other words, it is a means that can be used instead of the existing legal currency.
On the other hand, the dictionary definition of the token is “A voucher that can be exchanged for goods or services.” In other words, it has the meaning as a voucher that can be exchanged for goods or services.
For coins, coins and tokens are determined by the presence of “main net”. That is, if you own your own block-chain protocol “mainnet” and configure an independent ecosystem that does not depend on other platforms, you can say “coin”.
Typical “coins” include bit coin, ethereum, and ripple.
Tokens are cryptocurrency that are issued without own “main net”. For example, a token is a cipher that is issued in the form of dapp above a protocol like Ethereum.
However, even if it is issued as a token, developing your own “main net” can turn into a coin. EOS uses Ethereum’s protocol but now says it will launch its own main net called EOS.IO.
Coins and tokens are different from each other, but they are perceived as the same in the real cryptocurrency market. And they are traded freely through the exchange market.
In fact, there is no recognized classification system for cryptocurrency. However, referring to the classification criteria of ‘Untitled INC’, you can categorize the type of cryptocurrency with the following five views.
