Utility coins are cryptocurrencies that are used to access or power a specific service, product, or ecosystem within a blockchain network. These coins are not primarily meant for speculation or investment, but rather to facilitate transactions, pay for services, or interact with the ecosystem.
Here are some examples of utility coins:
1. #Ethereum (ETH)
Purpose: Used to pay for transaction fees (gas fees) and to run decentralized applications (dApps) on the Ethereum network.
How it's used: Developers use ETH to pay for smart contract execution and transactions on the network.
2. Binance Coin (#BNB)
Purpose: Used to pay for trading fees on the Binance exchange, participate in token sales on Binance Launchpad, and pay for various services within the Binance ecosystem.
How it's used: Users get discounts on Binance fees when they use BNB.
3. #Chainlink (LINK)
Purpose: Used to pay for oracle services on the Chainlink network. Chainlink provides real-world data to smart contracts.
How it's used: dApps use LINK to request data from external sources via Chainlink oracles.
4. VeChain (VET)
Purpose: VeChain is used for supply chain and logistics solutions, helping companies track goods and data.
How it's used: VET tokens are used to pay for services within the VeChain ecosystem.
5. Filecoin (FIL)
Purpose: Used to pay for decentralized storage services on the Filecoin network.
How it's used: Users pay FIL to store data and retrieve files on the network.
6. Litecoin (LTC)
Purpose: Primarily used as a fast and low-cost alternative for Bitcoin for transactions.
How it's used: People use LTC to transfer value across borders or pay for goods and services.
7. Uniswap (UNI)
Purpose: Used for governance and to participate in the management of the Uniswap decentralized exchange (DEX).
How it's used: Holders of UNI tokens vote on decisions related to the Uniswap platform.
8. Stellar (XLM)
Purpose: Used for cross-border payments, particularly focusing on improving the financial system by enabling fast and low-cost transactions.
How it's used: XLM tokens facilitate transactions between different currencies on the Stellar network.
9. Tether (USDT)
Purpose: A stablecoin used to transfer value within the cryptocurrency market and as a store of value. It is pegged to the value of the US Dollar.
How it's used: Traders use USDT to move funds between exchanges and avoid volatility.
10. Tron (TRX)
Purpose: Used to power decentralized content sharing and entertainment on the Tron network.