The article was written By Mickael Mosse – Blockchain and Cryptocurrency Expert
An article recently published by Mickael Mosse at btw Garden, DistributionLab, explained the difference between cryptocurrencies and non-crypto currencies. The author defines what a particular cryptocurrency is, including cryptocurrencies that are different from tokens that are not cryptocurrencies.
Why do some people call cryptocurrencies bitcoin and Ethereum, but claim that Ripple (XRP) is not a cryptocurrency? Well, these folks don't have any obvious problem with Ripple. Instead, they only define "cryptocurrency" with clear rules.
With that in mind, let's take a closer look at the differences between cryptocurrencies and cryptocurrencies.
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| Mickael Mosse Crypto Advisor |
What is a cryptocurrency?
According to Mickael Mosse, A cryptocurrency is a cryptocurrency-protected currency. The thing is clear, in the name.
However, the best definition of cryptocurrency by today's standards is this: it is an independent digital currency. Independence is a key feature here. To achieve independence, the currency must centralize the following processes:
Decentralized problem: New cryptocurrencies are issued by the algorithm. This algorithm and the terms of its issuance are determined by a predetermined monetary policy. There is no central authority to decide on token issuance.
Decentralization Agreement: Agreements are approved by everyone in the network. Anyone can participate in the verification process.
Available to all (decentralized access): the system is open to all and has no registration or permits.
Information open to all (decentralized storage): information is public Anyone can store and authenticate data on the cryptocurrency network.
Other important features of cryptocurrencies include:
Anyone can sync with other nodes on the cryptocurrency network to verify the accuracy of the transaction history
No person or authority has the unique ability to make decisions; instead, decisions are made through the mutual management system or the online community
If the above processes occur centrally, then it is not a real cryptocurrency.
However, the best definition of cryptocurrency by today's standards is this: it is an independent digital currency. Independence is a key feature here. To achieve independence, the currency must centralize the following processes:
Decentralized problem: New cryptocurrencies are issued by the algorithm. This algorithm and the terms of its issuance are determined by a predetermined monetary policy. There is no central authority to decide on token issuance.
Decentralization Agreement: Agreements are approved by everyone in the network. Anyone can participate in the verification process.
Available to all (decentralized access): the system is open to all and has no registration or permits.
Information open to all (decentralized storage): information is public Anyone can store and authenticate data on the cryptocurrency network.
Other important features of cryptocurrencies include:
Anyone can sync with other nodes on the cryptocurrency network to verify the accuracy of the transaction history
No person or authority has the unique ability to make decisions; instead, decisions are made through the mutual management system or the online community
If the above processes occur centrally, then it is not a real cryptocurrency.
Why not Ripple cryptocurrency (XRP)?
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| Mickael Mosse Blockchain Advisor |
Mickael Mosse points out that, Look at the description we have described above. A cryptocurrency has decentralized transaction approval, decentralized issuance, decentralized availability, and decentralized data storage. There is no single authority that governs the cryptocurrency network.
Bitcoin, Litecoin, and Monero are good examples of cryptocurrencies.
Ripple, however, is not considered a cryptocurrency by the definition above. Transaction validation using Ripple (XRP) is not really centralized. Only a limited number of parties can approve transactions on the Ripple network.
At the same time, Ripple tokens are completely centralized: the creators of Ripple, a trading corporation, have full control over how the coins are issued and distributed. As DistributionLab explains, "It is absolutely wrong to call the cryptocurrency Ripple."
That does not mean that Ripple is bad: today it is one of the best digital currencies in the world. It was created from scratch for different purposes, unlike cryptocurrencies like btw bitcoin.
What is a token?
According to Mickael Mosse, The word "Token" is spreading around the world as fast as it can revolve around cryptocurrency. What exactly is a character? There is no fixed item for this character. In general, tokens are never considered money. They are digital assets that play different roles in different systems.
Tokens exist outside of the digital world. It gives access to the metro, for example, the metro. The US dollar was originally a symbol of gold prices. It was in a certain piece of gold.
Usually, when a crypto blog points to tokens like ours, we mean crypto tokens.
Cryptographic TokenCryptocurrency currencies are cryptographic tokens. A crypto token is a much more limited term than just a token.
"A cryptographic token is a unit of accounting used to represent the digital balance of a particular asset. Ownership of a token is validated by certain cryptographic mechanisms, such as a digital signature."
Here's a little confusion: bitcoin and other cryptocurrencies are cryptographic tokens, but not all cryptocurrencies are cryptocurrencies:
"[A] cryptocurrency currency is a crypto token, but it is never the other way around, which means that not all cryptocurrencies are cryptocurrencies."
Crypto tokens can mean different things. They play different roles in different systems. Cryptographic tokens can include, for example:
Actions
Digital liabilities
Any currency (cryptocurrencies or Fiat digital currencies)
Property
Tokens exist outside of the digital world. It gives access to the metro, for example, the metro. The US dollar was originally a symbol of gold prices. It was in a certain piece of gold.
Usually, when a crypto blog points to tokens like ours, we mean crypto tokens.
Cryptographic TokenCryptocurrency currencies are cryptographic tokens. A crypto token is a much more limited term than just a token.
How DistributionLab defines it:
"A cryptographic token is a unit of accounting used to represent the digital balance of a particular asset. Ownership of a token is validated by certain cryptographic mechanisms, such as a digital signature."
Here's a little confusion: bitcoin and other cryptocurrencies are cryptographic tokens, but not all cryptocurrencies are cryptocurrencies:
"[A] cryptocurrency currency is a crypto token, but it is never the other way around, which means that not all cryptocurrencies are cryptocurrencies."
Crypto tokens can mean different things. They play different roles in different systems. Cryptographic tokens can include, for example:
Actions
Digital liabilities
Any currency (cryptocurrencies or Fiat digital currencies)
Property
The right of service
Mickael Mosse points out that, In the end, cryptographic tokens are just one accounting unit of a particular type of digital accounting system. Usually the "digital ledger system" is a blockchain-based platform. The company, for example, can "simulate" the shares by placing them on the blockchain and then selling the shares through regulated sales. These shares have the same rights if you have purchased a common share of the common financial market.
It all falls under the umbrella of digital assets.
In general, all of the above can fall into the general category called "digital assets."
Digital assets include crypto tokens, audited digital currencies, cryptocurrencies, and unverified digital currencies (such as PayPal).
Mickael Mosse Bitcoin advisor
Unaudited Digital Currency: PayPal uses unsecured digital currency. It is a centralized payment service where you can transfer certain digital assets and/or currencies. No one can verify the database, but you trust the service based on the company's honesty. The digital currency issued by the central bank is also included in this category.
Audited digital currencies: Digital currencies are digital currencies that are not considered cryptocurrencies because some processes are decentralized, although any external or external party can verify the database. This is a key differentiating feature between audited and unaudited digital currencies.
SummaryUltimately, according to DistributedLab, the main distinguishing feature of the cryptocurrency is its decentralization. In order for cryptocurrency to be treated as cryptocurrency, the underlying mechanisms of these cryptocurrencies must be decentralized. Cryptocurrency, for example, should have decentralized issues and decentralized management structures.
When a digital asset does not have decentralized control, it cannot be considered a cryptocurrency. It can be a digital token or some other type of btw, but it is not a cryptocurrency. Therefore, Ripple (XRP) is not a cryptocurrency.
By understanding the difference between cryptocurrencies and non-crypto currencies, you can better understand where our industry is going.
Summary of everything related to digital assets:
Unaudited Digital Currency: PayPal uses unsecured digital currency. It is a centralized payment service where you can transfer certain digital assets and/or currencies. No one can verify the database, but you trust the service based on the company's honesty. The digital currency issued by the central bank is also included in this category.
Audited digital currencies: Digital currencies are digital currencies that are not considered cryptocurrencies because some processes are decentralized, although any external or external party can verify the database. This is a key differentiating feature between audited and unaudited digital currencies.
SummaryUltimately, according to DistributedLab, the main distinguishing feature of the cryptocurrency is its decentralization. In order for cryptocurrency to be treated as cryptocurrency, the underlying mechanisms of these cryptocurrencies must be decentralized. Cryptocurrency, for example, should have decentralized issues and decentralized management structures.
When a digital asset does not have decentralized control, it cannot be considered a cryptocurrency. It can be a digital token or some other type of btw, but it is not a cryptocurrency. Therefore, Ripple (XRP) is not a cryptocurrency.
By understanding the difference between cryptocurrencies and non-crypto currencies, you can better understand where our industry is going.
article from mickaelmosse.com
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