A cryptocurrency token is a unit of digital currency that is exchanged on a blockchain. Unlike many traditional currencies, cryptocurrencies have versatile utility; they can be used to trade contracts, titles of ownership services, and more.
Traditionally there are two broad categories of cryptocurrency; coins and tokens.
Coins are a currency that has its own blockchain. Basically a coin is THE currency that moves the economics of the blockchain and are the main units of value for the blockchain. Examples of coins are Bitcoin, Ether, Ripple, etc.
Tokens need to be created on an existing blockchain, and then need to live on that blockchain. Applications that run on a blockchain can create tokens that are specific to the needs of their application, but are not necessary to the operations of the blockchain as a whole. Tokens can be used as currency, accounting, proof of ownership in a project, digital rights, security, payment, etc.
There are several different kinds of coins/ tokens that can be executed on the Telos blockchain. Below is a list of the main types of coins you will find, along with some general cryptocurrency information.
TLOS is the name of the token that reflects ownership in the Telos network. The benefits of holding TLOS are include, but are not limited to:
- Ability to participate in community-led governance protocols.
- Ability to vote for block producers, arbitrators, and community funded projects.
- Ownership of a certain amount of CPU and NET resources. These resources are valuable and are how holders can use the network without paying any transaction fees.
- Ability to lease out resources to speculators, application developers, and other actors in the ecosystem.
- Potential gains due to speculators, resources leasing, and application developers.
TLOS is subject to market systems and its price can be volatile. Currently, TLOS is highly undervalued and presents a great opportunity for anyone to buy into the system that might be interested.
You can find out where to buy TLOS here.
Acorns are a token that run on the Telos blockchain. Acorns are a fun way to learn about how to use the TELOS blockchain and are unique in the cryptocurrency system in that they can not be bought, only earned or given. Once a user has an acorn they are eligible to earn one Acorn a day thereafter. For this reason, Acorns can be considered a prototype UBI system. It’s a huge experiment, with lots of potential. To begin earning Acorns, visit the Acorn site here.
Olive is a UBI (universal basic income) token that runs on the Telos blockchain. Olive requires users to sign up by publishing their name and photo to the blockchain. Once they have done that they can earn one Olive token a day, merely by existing. Olive is still in the process of figuring the use cases that would best utilize Olive, but has promising potential. Read more here.
CarbonUSD is a stable coin that is pegged to the US dollar. Theoretically every Carbon coin should be worth the equivalent of 1 US Dollar. Carbon has been deployed on Telos and allows Telos holders to easily convert their fiat into cryptocurrency. To learn more about Carbon, feel free to visit the website here.
Dapp tokens, or application tokens are cryptocurrencies that have been deployed on the Telos blockchain in order to support a certain Dapp (aka application). These tokens have specific use cases to the applications that they support. As mentioned above they can be used for a variety of reasons, including currency, accounting, proof of ownership in a project, digital rights, security, payment, etc. Most of the time they are used to raise capital (like an IPO) and then serve as proof of ownership in a project.
Blockchain is still in its genesis, and, no doubt various types of coins with different use cases will come to make themselves known. To see a complete list of all the coins/tokens that are currently available on Telos, please visit the decentralized Telos exchange, Vapee.