A thorough understanding of the difference between currency-based blockchain and currency-less blockchain in one article

Coinless blockchain refers to blockchain technology that does not issue Tokens and usually appears in alliance chains or private chains. It does not exchange value through Token. In contrast, Youbi Blockchain obtains user support by airdropping corresponding Tokens to users, which is more efficient and has richer application scenarios. The currency blockchain can better realize the linkage of rights and interests. Some investors would like to have a deeper understanding of the differences between currency-based blockchains and currency-less blockchains, and I will introduce them to you below.

The difference between a currency-based blockchain and a currency-free blockchain

The record content of a currency-free blockchain and a currency-based blockchain exists difference. The currency-based blockchain is mainly used to record transfer information, while the currency-free blockchain uses other incentives instead of using Tokens. Therefore, currency-less blockchains are more complex than currency-based blockchains.

Coinless blockchain protects small and medium-sized investors to a certain extent, but it also increases the cost of user acquisition, reduces public investment participation and the popularity of the blockchain, causing small and medium-sized investors to lose Investment Opportunities.

Coinless blockchains usually have two forms: private chains and alliance chains, which are still multi-center or single-centered networks, while currency-based blockchains are mainly suitable for public chains and are more in line with the idea of ​​decentralization. . In the short term, the country will focus on developing currency-free blockchains, but in the long term, currency-based blockchains and currency-less blockchains will promote each other. Therefore, the multi-chain structure of future blockchains is an inevitable trend.

Introduction to currency-based blockchain and currency-free blockchain

Although the currency-based and currency-free blockchain networks are both built by the project parties themselves, in terms of the fundamental operating mechanism There is a difference. In the "coin blockchain", users can not only design their own DAPP and provide transaction information, but also use digital currency payment to obtain computing power. In addition, they can also provide computing power to other mining users through mining, thus becoming producers and maintainers instead of just users.

Due to the large computing power base, large-scale "currency blockchain" networks, such as Bitcoin, Ethereum, etc., even if they are developers of the project network, it is very difficult to centralize the authority to the point where the number exceeds half of the total computing power. However, "coinless blockchain" has recently been mainly divided into two forms: "private chain" and "consortium chain". Therefore, users are just users of the technology, and the personnel who maintain the normal operation of the network are formally employed by the project network issuer. In this way, the generation of computing power is very dependent on the fund-raising ability of the project issuer. In this case, the computing power of the "coinless blockchain" network is completely controlled by the issuer. Generally speaking, it is like A polycentric, or to be precise, a monocentric network is formed.

I hope investors can understand the difference between currency-based blockchain and currency-less blockchain through this article. Although the currencyless blockchain can realize functions such as traceability and smart contracts, it still belongs to a ledger controlled by an interest group. Therefore, such a project is relatively easy for the sponsor to tamper with data, which poses a major challenge to the security and privacy of the blockchain. In this case, it is difficult for the project to win the trust of users. Therefore, a coinless blockchain is really just a cloud server with some blockchain functionality.

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