|
Title: How are altcoins with no mining classed as currency Post by: Mackswel on January 19, 2018, 10:34:28 AM Is there is another relationship between coins and blockchain, other than a reward for mining and solving each block?
I understand that Bitcoin/Ether/litecoin process financial transactions, hence, a currency. But for altcoins like icon (ICX) which are just companies that use Blockchain, and involve no mining, is what you are actually purchasing more closely related to a share in the company than an actual currency? What have I physically just bought for $5 a 'token'? Title: Re: How are altcoins with no mining classed as currency Post by: James Roger on January 19, 2018, 01:37:21 PM A “token” by definition is a representation any fungible tradible good such as currency, loyalty points, gold certificates, in game items and more.
In a more real life example. You pay $2 at a pinball machine effectively exchanging your currency for 3 pin balls (tokens) to be used to play within the pinball game. Title: Re: How are altcoins with no mining classed as currency Post by: damberg on January 19, 2018, 02:01:07 PM To be very exact, you haven't bought anything "physical". Tokens are often used as means of primary distribution before launching main net solution (supposedly blockchain solution). For some projects, tokens represent (or are promised to represent) a certain value in future - share of profit, share of transaction fees etc. The other group of tokens are simply tokens as a part of the company - founders effectively raised additional capital thanks to you.
|