- August 13, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Context : Hackers pulled off the biggest ever cryptocurrency heist on Tuesday, stealing $613 million in digital coins from token-swapping platform Poly Network, only to return $260 million worth of tokens less than 24 hours later, the company said
- Poly Network is a decentralized finance (DeFi) platform that facilitates peer-to-peer transactions with a focus on allowing users to transfer or swap tokens across different blockchains
- Poly Network operates on the Binance Smart Chain, Ethereum and Polygon blockchains. Tokens are swapped between the blockchains using a smart contract which contains instructions on when to release the assets to the counterparties.
- Crypto tokens are a type of cryptocurrency that represents an asset or specific use and resides on their blockchain.
- Tokens can be used for investment purposes, to store value, or to make purchases.
- Cryptocurrencies are digital currencies used to facilitate transactions (making and receiving payments) along the blockchain
- A crypto token is a virtual currency token or a denomination of a cryptocurrency. It represents a tradable asset or utility that resides on its own blockchain, and allows the holder to use it for investment or economic purposes.
Purpose of Tokens
Crypto tokens can be used to represent an investor’s stake in the company or they can be used for an economic purpose, just like legal tender. This means token holders can use them to make purchases or they can trade tokens just like other securities to make a profit. Bitcoin is a cryptocurrency, which has virtual tokens or coins that can be used to trade or make purchases.
Difference between a Crypto Coin and Token
- Crypto coins allow individuals to make payments using their digital currency.
- People can use tokens, though, for trading, to hold and store value, and, of course, to use as a form of currency. Tokens that reside on blockchains include reward tokens, currency tokens, utility tokens, security tokens, and asset tokens