We use cookies. This helps us run our website and give you a better experience. By using our site, you agree to our cookie policy.

NC Wallet News

View all

Exploring Tokenomics

Understanding Technology Protects Your Funds

Understanding Technology Helps Protect Your Funds

Knowledge is power, especially in the blockchain world. Understanding the technologies behind a cryptocurrency not only makes you well-versed in tokenomics but also helps protect your funds. When choosing a crypto, find answers to these questions.

Token or native coin?

Start with defining the type of the asset you choose: is it a native coin or a token?

For a coin, it’s essential to dive into the technology of corresponding blockchain. Get to know more about the core innovations of a network, the consensus mechanism used, security methods, etc. For instance, if you use Bitcoin, learn how mining and Proof of Work operates.

For a token built on a smart contract, it’s recommended to know the type of standard. Token standard is a set of guidelines that developers must stick to ensure the compatibility and safety of the tokens they create. There are some trusted formats, for instance, ERC-20 and TRC-20 used for USDT. Opt for tokens launched on popular, audited, and thus more reliable, standards.

How decentralised is the technology behind a cryptocurrency?

Blockchain is meant to be decentralised, spreading control across the community. Yet, the level of decentralisation also depends on the type of crypto.

For native coins, decentralisation is often reflected in the transaction validation process. For example, Bitcoin is viewed as a prime illustration of distributed control through its Proof-of-Work consensus mechanism. In contrast, tokens on smart contracts are closer to traditional assets. For example, the smart contract stablecoins (USDT, USDC), governed and issued by specific companies, are more centralised and vulnerable to manipulation and restrictions. Make sure you understand the difference and possible risks.

Define the type of crypto, explore the underlying technologies, and start your crypto journey with confidence! For a complete set of tools, read all the articles on tokenomics — Supply, Distribution, Issuance, Demand & Utility.

NC WALLET

Recently Added

ETF: Crypto conquering traditional finances
The trust in cryptocurrency is growing! We're seeing it as crypto makes its way into traditional finance. A prime example is the growth of crypto ETFs: 72 ETFs are currently waiting for approval from the U.S. Securities and Exchange Commission (SEC). But what is an ETF, and how does it differ from actual cryptocurrencies?
Published:
NC Wallet: Now faster, stronger, smoother
We’ve made some powerful upgrades to take your experience to the next level. With enhanced infrastructure and performance boosts under the hood, NC Wallet now runs faster, smoother, and more reliably than ever.
Published:
Exploring DeFi
Banking without banks? With blockchain technologies, the world of finance is becoming faster, easier, and accessible to everyone. One of the most exciting parts of this transformation is DeFi — short for Decentralized Finance.
Published: