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Understanding the functioning of a blockchain project’s token or coin is essential to have a firm grasp of the technology. In fact, many investors fail to understand there is even a difference between a coin and a token in the first place.
The major difference between coin and token is that a coin has its own blockchain. When you send Bitcoin (BTC) or Dogecoin (DOGE) to your friend, that transaction is recorded and validated on its respective blockchain. A coin can be used to exchange value and transfer wealth. It operates essentially like cash.
A token, on the other hand, does not have its own blockchain. It is hosted on another blockchain — most commonly, on the Ethereum network. When a token is created using Ethereum’s platform it is called an ERC-20 token. If created on Neo’s (NEO) platform, it is known as NEP-5. This means that all of the security and functionality of these blockchains are afforded the token created.
Tokens are more akin to a gift card than cash; they have value in a certain context. You can buy a Big Mac with your McDonald’s (NYSE: MCD) gift card, but you can’t buy anything at Wendy’s Co. (NASDAQ: WEN).
ANLOG is the native token of Analog’s (ANLOG) network. ANLOG was minted as ERC20 and BSC tokens for sale contracts, and a 1-to-1 swap will occur post mainnet launch. It is central to the functioning of the network because it incentivizes users to interact with the network and submit time data. This time data makes up what Analog calls the Timechain, its time-based blockchain, and one of the many use cases for how dApps can work on the Analog Timechain. The Analog Foundation has also built into the network mile markers at which escrowed ANLOG will be released to users that have contributed significantly to the project.
With this, Analog will make sure the best data available is being contributed to the network and ensure the quality of the project.
Staking ANLOG, which the Company lists on its Q1 2023 roadmap as Time Machine alpha, will soon be a way in which holders of the token can help to further secure the Analog network. This will allow these users to earn interest on the sums they hold. An interesting feature of the project is that this interest will be combined with each user’s time relevancy score to reap even higher rewards. Additionally, holders of ANLOG will be able to participate in the governance of the Analog network once the mainnet is launched.
Learn more about Analog through these channels.
✅ Website: Home — Analog
✅ Telegram: Community Channel
✅ Telegram: Announcements Channel
✅ Discord: Analog (Official) Server
✅ Reddit: r/AnalogToken
✅ Medium: @analogtime
✅ Youtube: @analogoneofficial
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