What Is a Cryptoasset? (Explained Simply)

What is a crypto asset crypto assets Leverage cryptography consensus Algorithms distributed ledgers Peer-to-peer technology and or smart Contracts to function as a store of Value medium of exchange unit of account Or decentralized application or dap There are four most common types of Crypto assets cryptocurrencies utility Tokens security tokens and stable coins Cryptocurrencies are the most widespread Of these the two largest assets by Market capitalization on the crypto Market Bitcoin and ethereum belong to This class cryptocurrencies are coins EG Fully independent assets that can be Transacted between the participants of Their networks and use the blockchain Technology to function a blockchain is a Decentralized ledger of all transactions That have ever been made with a Particular cryptocurrency which is Maintained and updated via the use of a Consensus mechanism such as proof of Work or proof of stake utility tokens Are not coins in the strict sense of the Word as they do not run on their own Blockchain however they still use the Blockchain of the parent platform They're based on like ethereum or EOS Utility tokens are called so because They can be used to access a specific Product or a service for example storage Allows one to pay for using

Decentralized storage space on its Network utility tokens can still be used As a means of exchange but that is not Their primary purpose security tokens Are crypto assets that derive their Value from other assets both physical And digital that can be treated these Tokens are subject to security Regulations like those enforced by the U.S Securities and Exchange Commission Or SEC finally stable coins are a type Of crypto asset whose price is pegged to That of a traditional currency like US Dollar or the Euro examples of stable Coins include tether usdt and die and That about concludes our little class on Crypto assets we hope you enjoyed and be Sure to subscribe if you want more Videos like this