Top 10 Web3 Tokens in 2023 and Beyond
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What Are Web3 Tokens?
In this article, we will be looking at web3 tokens in order to help you understand their purpose and potential impact on the future of decentralized finance. To begin with, let's define what a web3 token is: it is a form of cryptocurrency asset used primarily for trading and investment purposes that exists on public blockchains or protocol-specific networks such as those created by Ethereum and EOSIO. As it stands today there are over 1,000 web3 tokens that have been issued across various blockchain protocols.
The Top 10 Web3 Tokens
Now that we've established what a web3 token is, let's take a look at the top 10 web3 tokens of 2023 and beyond. Here are our picks:
1) Ethereum (ETH): The most prominent example of a web3 token, Ethereum is currently the world's second-largest cryptocurrency with an impressive market capitalization of over $200 billion USD. It serves as the backbone for decentralized applications (DApps) on its public blockchain and can be used to pay transaction fees or salaries on these DApps.
2) Bitcoin (BTC): Inarguably the most famous and widely used cryptocurrency, Bitcoin offers a peer-to-peer digital cash system that enables users to send, receive and store funds securely. It serves as a global store of value and is accepted by many merchants around the world.
3) Ripple (XRP): A fast and secure payment protocol designed specifically for financial institutions, Ripple provides cross-border transactions with minimal fees and near-instant settlement times. XRP tokens are used to facilitate these transactions on its public blockchain network.
4) Tezos (XTZ): An open source platform for smart contracts and decentralized applications, Tezos runs on its own self-amending blockchain network which enables token holders to participate in the governance process of the platform.
5) EOS (EOS): A public blockchain protocol that provides developers with the tools they need to create distributed applications and smart contracts, EOS is a popular choice among developers due to its scalability and low transaction fees.
6) Binance Coin (BNB): The native token of the world's largest cryptocurrency exchange by trading volume, BNB serves many different functions such as paying for transaction fees on Binance DEX and participating in "Initial Exchange Offerings" on Binance Launchpad.
7) Cardano (ADA): Built using advanced cryptography, Cardano is a platform focused on providing financial inclusion by enabling users to make low-cost transfers between any two parties in the network. ADA tokens are used to pay transaction fees and secure the network.
8) TRON (TRX): A decentralized platform that focuses on entertainment content such as gaming, social media, and gambling, TRX is the native token of the TRON network and can be used to pay for transactions in these applications.
9) Stellar Lumens (XLM): An open source blockchain protocol designed to facilitate cross-border payments, Stellar Lumens use XLM tokens to power its decentralized exchange where users can send funds quickly and cheaply across borders.
10) NEO (NEO): Often referred to as "the Chinese Ethereum" due to its similarities with Ethereum, NEO is a public blockchain that enables developers to create smart contracts and DApps on its platform. NEO tokens are used to pay transaction fees and secure the network.
Web3 Tokens Vs Web3 Coins
One important distinction that needs to be made is between a web3 token and a web3 coin -- while both terms refer to digital assets, there are some fundamental differences between them. Web3 tokens are typically issued through Initial Coin Offerings (ICOs) or decentralized exchanges and represent a utility or value within a specific platform or protocol. On the other hand, web3 coins are used as a form of currency on public blockchains such as Bitcoin and Ethereum. They can also be used as an investment asset but unlike web3 tokens they do not necessarily have any special purpose attached to them.
In conclusion, web3 tokens are digital assets that are used to perform specific functions within a platform or protocol. They can be used to pay transaction fees, access certain features on a network, or as an investment asset. Web3 coins are digital currencies that are used as a form of payment on public blockchains and do not carry any special purpose apart from acting as a medium of exchange for goods and services.
Keep in Mind