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Coins

Definitions:

Coin: This is the primary asset of a block chain.  These are the base currencies of each crypto chain.

Token:  These are generally sub-assets, representing a project built on top of a block chain, typically using smart contracts.  Tokens are akin to stock shares, where the sum of a project’s tokens equals the market value of the project.

Circulating Supply:  The amount of tokens or coins that have been mined or minted (created).

Max Supply: The amount of coins or tokens that can be minted.  Many coins have a fixed supply, either all created when the coin is launched, or created slowly over time as nodes process the block chain.

Market Cap: The value of a coin or token.  This is generally the value of each coin multiplied by the circulating supply.

Stablecoin: A cryptocurrency that is designed to be pegged to another asset, such as fiat.

 

Bitcoin (BTC)

The oldest and most well known crypto coin.  Invented in 2008 by Satoshi Nakamoto – an individual or group whose identity is still mysterious.  It was first used in 2009.  (More history here)

The max supply of Bitcoin is 21,000,000.  Due to halving, the supply will approach but never reach the max supply.  The last full Bitcoin is estimated to be mined in the year 2140.

As the value of a bitcoin increases, transactions trend to smaller decimal values.  Bitcoin has 8 decimal places (1/100 million).  This smallest fraction is called a Satoshi.

Read more about Bitcoin, including their white paper, at https://bitcoin.org/en/

Ethereum (ETH)

Ethereum is currently the second largest cryptocurrency in market cap. 

Conceived in 2013, and launched in 2015, the Ethereum network is a robust system that enables hosting and communication between decentralized applications.

Additionally, the network supports decentralized finance applications, creation and exchange of NFTs, and the creation and exchange of ERC-20 tokens.

Binance Coin (BNB)

BNB is the Binance token utilized to pay for fees and exchanges on the Binance ecosystem.

BNB originally launched as an ERC-20 token between June 26th-July 3rd, 2017.  The original supply was 200 million coins, half of which was sold in its initial coin offering (ICO).  

Binance has committed to quarterly burns, which consist of 20% of all earnings in a quarter.  Binance plans to continue these burns until 50% of the initial supply is destroyed.

Binance also runs a smart-contract network that mirrors Ethereum’s network of decentralized finance, NFT and smart tokens (BEP-20).  (Note, BNB’s main coin is known as BEP-2 tokens)

Read more about BNB on Binance’s website, at https://www.binance.com/en/bnb

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