MODL Tokens or MODL Coins?

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MODULE

5 min readMar 14, 2019

This article explains what users will get on the MODULE platform

MODULE is a blockchain-based platform designed to utilize the free storage of smartphones, PCs, servers, etc. as an asset. Using the MODULE platform, one will be able to participate in mining even from a smartphone.

Meaning of “Platform”

Platform is a fundamental part of products and services. If we take video game consoles as an example, game consoles can be considered as platforms, while applications, which can be enjoyed on the consoles, are services.

Popular examples of today’s platforms include Ethereum, Stellar, and NEO. The MODULE platform is also a base, or foundation, which operates according to its algorithm, and can accommodate DApps, and enable producing new tokens.

About Coins

Although the terms “coin” and “token” are often used interchangeably, there are a few key differences to be aware of. On the MODULE platform users will get MODL coins, not tokens, as a reward for making contribution to the network. Why?

In general terms, a coin is an encrypted digital currency meant to be used as a form of payment.

A coin is a unit of value that operates on its own blockchain, independently of any other platform.

It can be used for storing value and paying for services in pretty much the same way as you would use traditional money.

Bitcoin (BTC) is the most widely known cryptocurrency coin around the world but it is not the only coin available. At the time of writing, there were 853 coins available. You may see many of these other coins referred to as altcoins — alternative coins.

The table below shows the top 4 coins by market capitalization at the time of writing:

Coins are similar to money. They are fungible, divisible, acceptable, portable, durable and have limited supply. Most ambitious crypto enthusiasts argue that coins will replace traditional money in the future. They can be sent, received or mined; however, they are not meant to perform any functions beyond acting as money.

Features of Tokens

Tokens are used to represent digital assets including everything from commodities to voting rights. They are fungible and tradeable. However, rather than operating on their own blockchain, tokens are hosted by a platform, such as Ethereum. At the time of writing, there were 1248 tokens listed on CoinMarketCap.

For example, a ticket to a concert is a “token” in real life. The time and place where you may use it are determined. You may use it in a concert hall but you cannot use it in a café to pay your bill. Digital tokens are similar — they have certain use cases inside a certain project.

Tokens can represent a company’s share, give access to the project’s functions and much more.

Creating a token is easier than creating a coin, as you do not need to create a new code or modify the existing one. Instead, you can just use standard templates from platforms like Ethereum. Using a template for creating tokens provides smooth compatibility, that is why users can store different types of tokens in just one wallet. Probably that was one of the reasons why tokens eventually flooded the market — the process of creating tokens on Ethereum was amazingly simple.

Generation of MODL Coin

Like all cryptocurrencies, MODL coin is not issued by a government, which historically has been the only entity that society trusts to issue money. MODL coins are created by the elaborate procedure called mining, which consists of processing transactions in the digital currency system. During mining, the records of current transactions, known as blocks, are added to the records of past transactions, known as blockchain. The MODULE network can generate a block in just 20 seconds as opposed to 10 minutes for Bitcoin.

The supply of MODL coins is fixed. The maximum and total amount of Bitcoins that can ever exist is 21 million, while for MODL the number is 15,000,000,000.

Storing MODL coin

Basically you do not need to search for a place to store your MODL coin. You can store it in a MODULE wallet on the platform. A MODL wallet can be generated for free and it will be easily accessible any time you need it — just open the application.

In the future, you will also be able to store your MODL coin on exchanges. This option is less secure but you will have a wider range of transactions available — selling, buying, exchanging, and lending coins.

Finally, one more option is to store your MODL coin in a hardware wallet. No one will be able to steal your MODL coin but if you lose your hardware wallet (which is somewhat similar to a flash drive) you will lose your coins as well. In this regard, hardware wallets are safe but not very practical.

Conclusion

Words “coin” and “token” are often used as synonyms and considered by many people as interchangeable. But they refer to two different concepts.

MODL coin is a currency that can be used for buying and selling things — it is a method of payment, which Providers can get as a reward on the MODULE platform.