This gem of a platform, KuCoin, was founded in 2017. Since its founding, it has been growing exponentially to be one of the largest global exchanges by trade volume. It is now present in more than 200 countries; It has up-to-date news about every Crypto price and NFTS. KuCoin has the best technology for trading products on which the KuCoin is built. Well, here in this article we are going to explore about the security token and Cryptocurrency. So, without any delay-Let’s explore!
What Is A Security Token
It is used widely in data science. It is the same term when used in the field world of Cryptocurrency news. It is a randomly generated number assigned to sensitive data to secure real data. Blockchain uses a token as a number used to secure the data within the blockchain; giving a token to data is known as tokenization.
What It Brings
Security token represents an investment asset and ownership or other rights that might be related to it. You can say that a company/firm decides to issue a fractionalized ownership of the company, so it gives a security token to the ones concerned instead of issuing stock; the company could then offer this token or exchange that allows digital security tokens. Security tokens will very soon be available to retail investors, but many institutions are working to develop them.
Security Token And Cryptocurrencies
Security Tokens and Cryptocurrencies are very similar; both are created and stored on the blockchain, but the main difference between them is their use. A cryptocurrency is designed to be used as currency, money, or payment method, while a security token can be used as a stock, asset, investment asset, certificate, and bond.
Ethereum
It is a native token but not a security token means it can buy you access to a company product or service, while with a security token, you can buy a stake in the company itself. It is intended to be used within Ethereum price virtual machine to pay transaction fees. Soon owners will be able to stake the ETH when the Merge happens.
The Impact Of The Merge
Ethereum could introduce the triple halving, which is equivalent to about three Bitcoin halvings, and with that, the inflation rates will decrease from 0.43% to 4.3%. Also, the block reward will get reduced to one-tenth of the original. Despite the merger and having the first-mover advantage regarding smart contracts, the ETH remains unscalable and unsustainable due to using the PoW consensus model. To address and overcome these challenges, the ETH has transitioned from the Proof-Of-Stake model in Q4 of 2020, hoping for a better outcome for this trilemma.
The Ethereum developers predict that the Merge will cut the network’s energy consumption by more than 99%; they claim the Merge will set up the network for sharing. Developers are expected to ship the Merge with a flexible deadline of 19th September 2022 or anywhere between Q3 and Q4 of 2022.
The Merge of ETH will greatly impact crypto tokens within the Ecosystem of ETH and the broad market. The Ethereum name service ETH will also begin the Web3 version of the (DNS) domain name system. It will allow the users to customize their web address with .ETH, and it is humanly readable, cutting energy usage and attracting more users.
Conclusion
KuCoin provides the feasibility to give its users an easy and secure transaction as it is one of the most secure platforms among four crypto holders worldwide. It uses KuCoin in the top 3 global rankings, with 700+ crypto enlisted at very low fees.
The idea behind the tokenization of ownership of a company or an asset is not old; previously, paper certificates were used as a token representing rights of ownership, among other rights. Security token does not wear or get weathered like paper and goes through a blockchain tokenization process, which provides security to the ownership issues and gives you the ability to access anywhere. KuCoin ensures that it stays ahead of its competitors and security issues to provide a path to comfortability and ease while doing such tasks. The increase in users provides a platform through which security tokens can be processed easily.
