A cryptocurrency like Theta (THETA -2.85%) is using blockchain technology to actually become a content delivery network, like Cloudflare. In this Motley Fool Live segment from "The Crypto Show," recorded on April 20, Fool.com contributor Jon Quast uses this example to explain the different uses for crypto coins and tokens.
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Jon Quast: There's a difference between, for example, coins and tokens, and so what I mean by that is: there are some that are designed to be that exchange of value. So you have something, a good or a service, and I have a cryptocurrency, and I pay you for that good or service in that cryptocurrency. And that is actually how it was intended to be used when they created it. There are others that are not that. And so one that comes to mind immediately, and the reason I like to use this example is, not necessarily because I think it's a great investment, but because it's really easy to wrap your mind around. And that is Theta.
So what Theta is trying to be is a content delivery network, just like a Cloudflare or a Fastly. But they're using blockchain technology, they're using decentralization. But they're building this platform that is supposed to be like what those companies offer. And so if you have TFuel, for example, you can actually use the system that they've created. Now TFuel, I can acquire TFuel. It's not designed that I buy something from Travis with TFuel. It's designed that I am using the content delivery network that Theta has created by using TFuel. And if I'm providing a service on that, I'm also receiving TFuel, so it's kind of what makes the whole system operate.
So that's a very very different thing than a currency where we're buying and selling, trading goods. So just wanted to make that distinction as well. Not everything that we talk about, just because -- I do, I call it a cryptocurrency. Maybe a crypto token would be a better way to talk about it, because there is a difference in function. Or at least in intended function.