Top 5 Protocol Coins And Tokens You Must Know About

What are protocol coins and tokens?

It is the same thing. Basically, they are called protocol tokens. But I will explain to you what protocol coins are. I need first to make you understand what protocols are and how it can be monetized. To clarify that, I will make you understand terms and definitions first. When it comes to the internet, it is three-layer model where you see the words written here. First is the internet itself, which is physical identity. The next are protocols which you may know as IP or HTTP. The third one is the apps like Facebook and Chrome on which you are reading this article right now. The protocols haven’t been monetized until the development of decentralized currencies and thus gave rise to protocol tokens and coins. 

Explain it to me like I am five

Well, consider sandwiches (please grab one if you are hungry so that you don’t get distracted). The bread at the bottom, which holds the sandwich, is what the internet is. It is also known as physical being because it is the device on which protocols run. Okay, so it is the bread that is in contact with surface, so it is the one that holds everything in place. Now it has been monetized because you do pay for your devices and the internet connections, right? The bread at the top, which you can see, are the apps that get started with work on your device. Google, Facebook, YouTube, and the one you are reading from currently. Everyone knows about these apps because you see them often. And companies earn billions from it.

Now, what about the meat/salad in between? That’s what a protocol is. It is the thing that houses all the apps and every data in it. Since the development of blockchain and decentralization technology, even these tokens can be monetized. 

What do protocol coins and tokens do?

Now that you know what protocols are and how they can be monetized, understanding protocol coins and tokens is really simple. Protocol coins and tokens are made to access the services on these protocols. Consider Ethereum first. Ethereum is an efficient decentralized protocol in blockchain that requires Ether or Ethereum coins for access and usage of apps such as Augur or EtherDelta on its platform. The reason why there is so much hype with respect to these coins and tokens is the fact that the world of protocols is limitless. You can make unlimited services and apps on the Ethereum protocol, and you can run anything you want, but without protocol, the internet is just electricity through your computer. 

Top 5 protocol coins and tokens that you must know about

Investment in protocols was not possible before the development of decentralized and blockchain technology. But now you can invest to your heart’s content. Also, I would like to clarify that it is not financial advice or investment advice. Here are five of them, and you can individually search the names of these protocols and would find more on Google. 

1. 0x(ZRX)
2. Loopring (LRC)
3. Lisk
4. Filecoin
5. Ethereum

Conclusion

Here the article comes to an end. You must realize that before you see the top 5 coins and tokens and make your choice, you need to make sure that you know what protocol coins are and why they are vital. Comment your thoughts below!