What is Seed Coin (What is Seed)?

What is Seed Coin? According to a report by cointelegraph, as of September 30, 2020, more than 50 cryptocurrencies and blockchain protocols have announced their tokens. What is Seed Coin? These digital assets can be considered as “true” decentralized applications or ecosystems by Ethereum (ETH), Polkadot (DOT), and some other blockchain projects.

However, despite their interoperability and ease of use, they are not suitable as a means of payment to facilitate transactions, investments, or speculative activities due to certain factors.

What is Seed?

Editor’s note: This article is from Caiyun Blockchain (ID: cybtc_com), authorized by Odaily Star Daily to reprint.

What is Seed? We know that Seed is a cryptocurrency that can benefit people. It is usually supported by a technology called “token”, such as smart contracts in the Ethereum network. In the DeFi field, these technologies operate in a decentralized manner, so they are an important tool and mechanism used to incentivize community participation in governance.

However, when you want to sell tokens, you actually need to send a token to the project party as a reward because the token does not belong to any individual or team and will change over time. (If you want to buy tokens with Bitcoin or Ethereum)

So, if you want to buy a coin with ETH, then the token is your token! What does this mean for those who want to transfer assets to the exchange? Simply put, users can earn money by depositing.

Of course, this is also the case for Seed. It is an open-source protocol developed by the token issuer Binance Labs, allowing anyone to create their own tokens. This protocol allows both token holders and traders to use the token. Therefore, when the token is sold, ownership is held by this project, without any individual or institution controlling it.

However, Seed is not actually a token in the true sense, but a concept of tokens. That is to say, tokens are not securities. Instead, its value lies in its built-in proof-of-stake consensus algorithm.

What is Seed? Seed refers to code-based digital products, services, and contracts that drive something. Seeds can be publicly sold on the blockchain.

Currently, there are two ways to achieve this goal. One is to build tokens on the blockchain. The other is to issue tokens directly on the Ethereum chain. The first method is to mine from smart contracts and then transfer to other blockchains. The second method is to establish tokens in the form of smart contracts. For example, when the application sends 1 token to a specific address, the system will allocate $1000 in each block to obtain 1 million token rewards. The third method is to use ERC-20 tokens as a means of circulation with seeds. The minimum unit of Seed is one unit: 0.00000000000010000 BTC. Due to the limited and immutable quantity of tokens, they cannot be exchanged with other tokens, resulting in price differences.

For ordinary investors, Seed is the only way to verify the authenticity of tokens. However, many non-professionals consider this to be a very complex operation because once the tokens are sold out, there will be a sell-off. Another utility of Seed is practicality-just like early Internet applications, most applications now rely on internet connections.