What’s the difference between a blockchain network and the coin itself?
What’s the difference between a blockchain network and the coin itself?
Complete beginner here. I don’t get what a network is in relation to the coin. For example, I can buy USDT on the polygon network or ethereum network, and neither of these forms of USDT can be sent to each other. Why can’t I just buy USDT directly USDT without buying on a network which buys a completely different token, only to convert it into USDT? For example, I can buy bitcoin directly, but not USDT.
-
Blockchain Network – This is the underlying decentralized ledger technology that records transactions. It consists of nodes (computers) that validate and maintain a secure, immutable record of data. Examples include Bitcoin (the blockchain network) and Ethereum (the blockchain network).
-
Coin (or Token) – This is the digital asset that operates on the blockchain. It can serve as a means of exchange, store of value, or governance tool. For example, BTC (Bitcoin the coin) runs on the Bitcoin blockchain, while ETH (Ether) runs on the Ethereum blockchain