What are crypto terminology?

Future is Decentralised. What is the meaning of Decentralized and what is Crypto Networks.
So Hi, This is Mayank and in this blog, I will talk about The Basics of Crypto that you must know.
There are a lot of terms like Networks, Smart Contracts, Tokens, and Exchanges you might hear about For example BEP20, TRC20, ERC, Binance , WazirX, and many more Terms. What does that mean? So here we go:

What is Crypto Tokens?

Recently You might hear about DogeCoin or maybe you own some $DOGE, Or maybe you have some $SHIB – ShibaInu coin. These coins are known as Tokens. Crypto tokens are a type of cryptocurrency that represents an asset or specific use and reside on their own blockchains like Bitcoin, Ethereum, or Solana. Tokens can be used for investment purposes, to store value, or to make purchases. Don’t confuse the Crypto Tokens with Crypto Currency, There is a Difference.

What is CryptoCurrency?

You know Bitcoin? or maybe Ethereum or Solana. well, A cryptocurrency is a standard currency used for making or receiving payments on a blockchain, with the most popular cryptocurrency being Bitcoin (BTCUSD). The cryptocurrency is the superset, while altcoins (and crypto tokens) are two subset categories. While crypto coins are essentially digital versions of money, tokens can stand for assets or deeds. You can buy tokens with coins, but some tokens can carry more value than any of them.

What are the Altcoins?

The term ‘Altcoin’ is a combination of two words: ‘alt’ and ‘coin’ where alt means ‘alternative’ and coin means ‘cryptocurrency’. Together they imply a category of cryptocurrency, which is an alternative to the digital Bitcoin currency. Litecoin is a famous altcoin.

You might Hear about Binance or Ethereum If we talk in technical terms(Don’t worry, I will Explain) so,
“A blockchain network is a technical infrastructure that provides ledger and smart contract (chaincode) services to applications.”
well, let me explain it. You must be using social media like Facebook, Twitter, or Gmail. well on these platforms we can share posts or thoughts, in the same way on a Network we Trade the crypto or tokens. Each Network charge the Fee for trading on their Networks. Like we have to see ads on Social media so they can earn and survive. Here are some examples of Networks Ethereum, Binance, and many more.

The platform where you do the trading is called Exchanges. Basically, on an exchange, we can buy, sell and trade the Token. You should create an Account on these exchanges to be able to Trade Crypto Tokens. Some famous exchanges are:
Binance (International Exchange)
WazirX (Indian exchange)
CoinMarketCap(Famous)

What is a Smart Contract or Contract?

Well, here I am assuming you all have a Bank Account number, Right? So when you open your Bank account there are some rules defined for each bank like Account number should be in this format or Max Digit should be 12 or 13 or 16 whatever.
The same goes for Crypto, Let’s say you want to get your own Address (Like account number) where your Friend can send you some tokens or Crypto like Bitcoins or any token. There should be some Formatting for your Address ( Address is like account number of your own), these formatting and rules defined by contract Address. These rules are like what are the decimal values what is the Signature of the coin/token etc.

Each Crypto Currency or Token you might know has its own Contract where it executes itself to the Blockchain Node when you trade.
There are many Smart Contracts in the Crypto Markets, Below mentioned some famous and well-known Contracts:

ERC
One of the most significant Ethereum tokens is known as ERC-20. ERC-20 has emerged as the technical standard; it is used for all smart contracts on the Ethereum blockchain for token implementation and provides a list of rules that all Ethereum-based tokens must follow.
BSC
Binance Smart Chain or BSC, Known as BEP-20 is an alternative to Ethereum and other leading DeFi platforms. BSC gained popularity after Ethereum failed to prove viable to those who couldn’t afford the fees. Binance , a leading cryptocurrency trading exchange, announced BSC in September 2020. BSC is similar to Ethereum, but both aren’t the same. Ethereum uses proof-of-work consensus, while BSC uses delegated proof of stake, allowing it to process more transactions per second and at a lower cost.
TRC
TRC‌-20 is a technical standard used for smart contracts on the TRON blockchain for implementing tokens with the TRON Virtual Machine (TVM). It is fully compatible to ERC‌-20.

So, This Far you get to know about Crypto Tokens, Crypto Currency, altcoins, Networks, Exchanges, and smart contracts. This blog will continue in the second part where I explore more into crypto. Comment down any keyword you are confused about and I will explain it in the next Blog. Thanks for reading till here. Signing off.

DISCLAIMER: DYOR

Do Your Own Research Before Investing (DYOR). This Blog or author/authors of this blog has/have no responsibility for any loss or any consequences including money loss. Trade with awareness.