Book Image

Ethereum Smart Contract Development

By : Mayukh Mukhopadhyay
Book Image

Ethereum Smart Contract Development

By: Mayukh Mukhopadhyay

Overview of this book

Ethereum is a public, blockchain-based distributed computing platform featuring smart contract functionality. This book is your one-stop guide to blockchain and Ethereum smart contract development. We start by introducing you to the basics of blockchain. You'll learn about hash functions, Merkle trees, forking, mining, and much more. Then you'll learn about Ethereum and smart contracts, and we'll cover Ethereum virtual machine (EVM) in detail. Next, you'll get acquainted with DApps and DAOs and see how they work. We'll also delve into the mechanisms of advanced smart contracts, taking a practical approach. You'll also learn how to develop your own cryptocurrency from scratch in order to understand the business behind ICO. Further on, you'll get to know the key concepts of the Solidity programming language, enabling you to build decentralized blockchain-based applications. We'll also look at enterprise use cases, where you'll build a decentralized microblogging site. At the end of this book, we discuss blockchain-as-a-service, the dark web marketplace, and various advanced topics so you can get well versed with the blockchain principles and ecosystem.
Table of Contents (18 chapters)
Title Page
Dedication
Packt Upsell
Contributors
Preface
Index

Token versus coin


The title of this chapter is misleading. It has been made misleading on purpose. This has been chosen to make you realize the subtle difference between a cryptocurrency and a token in the perspective of Ethereum. When you explore the web to gain knowledge about cryptocurrency, you will observe that the terms cryptocurrency, coins, and tokens are often used interchangeably.

Figure 8.1 represents a classification that brings out the subtle differences between them:

Figure 8.1: Token versus coin

In simple words, the following four points summarize the difference between coins and tokens:

  • Coins are separate currencies on their own blockchain, while tokens are mainly based on a single blockchain variant.
  • Coins generally have a limited functionality, store-of-value, while tokens can store a complex, multi-faceted level of values.
  • Coins are mostly generated by mining a blockchain, while tokens are generated by executing smart contracts on the blockchain.
  • So, when we say cryptocurrency...