Exolix held the second edition of the Exolix Roundtable on June 18 with participants from Zano, Sumex, Cake Wallet, DigiByte, as well as members from the public community. These individuals discussed the hottest topic in the cryptocurrency world today - the debate between cypherpunk ethics and mass adoption. Watch the entire Space here:[LINK](https://x.com/exolix_com/status/2066845391065166075?s=20).

This discussion covered topics such as privacy, self-custody, regulations, stable coins, institutional adoption, user experience, and more.

### How do you see the balance between cypherpunk values and mass adoption?

Zano:  In our case, the balance begins with one idea - privacy has to be the prerogative of the user.

We provide privacy infrastructure, which means that we need to consider the issue of liability and exposure to regulations. The one way to do this is to not charge any fees from the protocol and from the projects that use the protocol. This will help us avoid the issues associated with the direct control and monetization of users' activities.

However, the key idea here is that compliance, if any, needs to be done under the full control of the user. It cannot include any backdoors, special access, or any other ways to violate the privacy of users without their consent. If a user decides to disclose some information, the means for that can be provided. However, the control should be still in the hands of the user.

It is a fundamental element of our model. Privacy works only under the control of the user.

### Can a company build cypherpunk tools and still operate in the real world?

Cake Wallet:  It is definitely difficult, as the straightforward cypherpunk answer would be to say: no compliance, no compromise, no collaboration with regulatory agencies. However, if you are running a business, then things get complicated.

Here at Cake Wallet, our goal is to create tools that do not necessarily need us. We are creating an easy and accessible bridge between the user and protocol level freedom and privacy technologies. Monero is one of those examples. Another one is Zano. These are platforms where privacy is embedded in the protocol itself, and we are here to make things easy for the users.

The question is to identify what freedom you still have and work within it. It may involve working with certain jurisdictions, defending open source development and being vocal about the regulations that harm users.

It all comes down to creating tools that are viable in hostile environment. We cannot assume that any government or institutions will be acting in favor of users. Thus, we have to provide them with other choices.

### Are we losing the original crypto vision?

Sumex:  I believe that our situation is not good as an industry.

The industry requires more users. However, these users come from the Web2 world and require simple and straightforward products and onboarding processes and experiences. In order to create such experiences for Web2 users, the industry relies on institutions, and institutions bring all those boring stuff like bureaucracy, KYC, regulations, and control.

Here we have a vicious circle. We need to grow but the way we grow will take us back to the old structures.

The initial vision of the technology was permissionless, trustless, and user-oriented. However, if you want to attract users, enter mainstream markets and attract money from institutions, you have to live according to their rules.

That is the problem. The technology will survive but the initial idea will be absorbed by institutions.

### Is mass adoption really the main goal?

DigiByte:I believe the very first thing is whether people really want to be free.

Everyone talks about freedom, privacy, and self-custody. However, when faced with a decision, most people prefer convenience over everything else. This is one of the major issues that this whole industry is facing.

At DigiByte, there was never any company, CEO, insider allocation, corporate ownership, or centralization of control of this project. We run completely voluntarily and our network has been operational since 2014 and we still believe in decentralization, proof of work, security, and self-custody.

But the only thing is that because we don't care about "number go up" things much, we are always ignored. The entire industry has become obsessed with hype, VC funding, and speculation. Those who remain true to the values of the industry are labeled as old-fashioned just because they aren't following any narrative.

Mass adoption is necessary, but at what cost?

### Is the cypherpunk side of crypto already lost?

Cake Wallet:  Sure, I get the feeling of pessimism, but I don't think the game is over yet.

All useful technology will eventually become mainstream. After this happens, it will always seem that the original dream is lost. That was how things turned out with the internet, encryption, and crypto as well.

On the other hand, there are now more users than ever who are using these technologies to protect themselves, transfer funds, exit bad situations or simply get free in hostile environments. The number of crypto users is much higher than at the beginning.

And while the aim is not to turn everyone into cypherpunks, the aim is to have technology available for those who need it. If one needs to opt-out, secure his funds, use some privacy technology, or avoid being surveilled, then such tools should be available.

This is why usability is so important.

### What principles should never be compromised?

Zano: Self-Custody is the dominant one.

It is not just self-custody of your money. Self-custody also applies to your privacy. You should have full control over what you expose, when you expose it, and to whom you expose it.

When privacy is contingent on a back door or an administrator's switch, then it cannot be considered privacy at all. Every back door will sooner or later be exploited or exposed.

Thus for us, the rule is simple -- privacy is default and exposure is voluntary.

### How should builders approach regulation and real user needs?

Cake Wallet:  I believe that developers should pay less attention to the ideology and pay more attention to people's problems.

For instance, a lot of people believed that in case of the failure of fiat currencies, all would switch to using Bitcoin. However, the problem that people had wasn't simply the problem of inflation. People needed a currency that could serve as a means to carry out transactions and payments.

That is why stable coins became so popular - they served a practical purpose even if they didn't fit the cypherpunks' ideology completely.

What is important is that we should build something that serves some practical purpose today, and then we should develop it in such a way that it will empower people, not companies.

In the case of Cake Wallet, this means building products of privacy and self-custody that people will actually use.

### Are stablecoins helping adoption or weakening crypto values?

Zano:  Stablecoins are complex.

First of all, they attract users to the crypto world. This is where people learn what it means to have a wallet, custody it by themselves, make transfers and use blockchain-based payments. The one who joins the crypto universe through a stablecoin is way more likely to deal with privacy coins or any other decentralized technologies in the future.

However, leading stablecoins have the potential to act as privately-owned CBDCs. These are subject to freezing, control and tracking.

Therefore, stablecoins are useful for onboarding, yet cannot be considered the end result of crypto liberty.

### What does privacy actually mean in crypto?

Cake Wallet:  Privacy implies user choice.

It is not true privacy if your information is hidden from the public eye and at the same time accessible to a third party. It is not a privacy if you allow access by default to a regulator, to a business, or to any service of surveillance.

The actual privacy would mean that the users are protected by default against exposing their finances to everyone. Any information disclosure would depend on your decision.

It is for this reason that the protocol-level privacy is critical. In cases like Monero, and in cases like Zano where such principles are used, privacy becomes an integral part of transactions. Users do not need to make additional effort in order to protect their information.

The privacy is not a marketing term.

### Why do some projects avoid calling themselves privacy coins?

Zano:  Positioning in privacy projects may be problematic.

In case the project positions itself as a privacy coin, it may attract more trouble in relation to exchange integrations due to the riskiness of the concept for such platforms.

There is one more problem related to privacy projects. Due to technical complexity, many platforms are accustomed to working with EVM chains or Bitcoin forks. In case the privacy project utilizes another type of infrastructure, it may require platform adjustments, scanning service running and other steps from the exchange in order to get integrated. This means that sometimes the problem is not just regulations but also technical challenges.

This is the reason why we work on the facilitation of Zano integrations through the creation of new addresses.

### Is crypto anywhere near real mass adoption?

CryptoEnforcer:  However, I believe we are not there yet.

Mass adoption is said to be close because lots of people trade cryptocurrencies and use tokens, but this does not mean actual adoption. Actual adoption is possible when you ask your neighbor to send you cryptocurrencies, and he can do it right away. People would be able to use privacy, self-custody, and P2P payments in their everyday life.

Currently, most activities take place among traders and opportunistic users, and while it is not a bad thing, this is not where we want to get.

The technology already exists. Privacy technology exists. Self-custody exists. However, people need incentives to use them. As soon as the need arises, more people will become educated.

Nowadays, the priority should be placed on creating useful technologies and educating users about them.

### Can privacy and usability exist together?

Digital Awareness:  This is among the major problems.

Many believe that the technology must operate in the same manner as traditional finance. However, the ultimate objective is to provide self-custody and decentralization in a way that can be utilized by anyone.

If the technology is overly complex, then people would never use it. Also, when the technology is too centralized, then the very purpose is defeated.

Therefore, the problem here is to provide privacy and self-custody in such a way that it does not become traditional finance with blockchain front-end.

### Can practical products keep cypherpunk values alive?

Cake Wallet:  Sure, and CakePay provides an excellent example of that.

The most cypherpunk future will be the one in which people can pay using their private money everywhere and anywhere. However, that is not the kind of world we live in today. In most cases, merchants do not accept payment via crypto.

Thus, what we try to do at CakePay is to meet people halfway. People can use gift and debit cards that work with cryptos and even privacy coins while making sure we do not gather excessive personal data on our users.

This is how you can create a tool that gets people as close to the cypherpunk future as possible.

### What is coming next for Zano?

Zano:  Our upcoming hard fork, Hard Fork 6, will be approaching soon.

The new hard fork will provide better security, as well as a new gateway address, thus making it more convenient for integrating Zano with other platforms, particularly DEXs.

It is important that privacy coins cannot be completely reliant on centralized services. Integration with DEXs is one of the key steps ahead.

Thus, users need to keep themselves up to date and follow the project.

### What should users know about Sumex?

Sumex:  Sumex is a super app for managing your crypto portfolios.

The app is aimed at various user categories. In case you are a professional trader, we have solutions for this category. In case you are an amateur crypto investor using CEXs, DEXs, and multiple blockchain platforms, the app helps you manage all in one place.

Among the key principles of Sumex, one should highlight that any user should be able to see his or her whole portfolio irrespective of which chain it is stored on. The app does not require registration, KYC, and any payments.

The idea is to make the management process more comfortable and frictionless.

### What is next for Cake Wallet?

Cake Wallet:  Privacy on many different chains continues to be a priority for us, however, one of the main priorities this year is desktop.

Cake Wallet has supported desktop wallets for quite some time now, however, they were never the center of our attention. That's all changing now.

Desktop provides much more room for advanced development than mobile does. It allows us to develop more sophisticated functionalities like atomic swaps, decentralized exchanges integration, as well as better privacy and security tools.

Our aim is to create a Cake Wallet which is beneficial not just for mobile, but for those who require an advanced desktop wallet while preserving privacy and self-custody at the same time.

### What is happening in the DigiByte ecosystem?

DigiByte:  There are many things going on.

DigiDollar is one of the big things coming. It is almost mainnet. This is a decentralized stablecoin running on top of DigiByte, without any margin calls, liquidations, and with self-custody using the core wallet.

There is also a lot of community-based tools such as DigiScope, where people can educate themselves on the blockchain, analyze data, do side quests, and interact within the ecosystem.

There are also mobile wallets as well as a web wallet for DigiByte in development by community members.

The point is that DigiByte still maintains the decentralization, self-custody, and utility of the currency. There is no corporation behind it, there is no CEO, there is no centralized ownership.

Closing
-------

From the second roundtable of Exolix, it became clear that the conflict between cypherpunk values and mass adoption is not straightforward.

Crypto has to improve usability, user base, and utility in terms of products. Yet, it still has to preserve the values that make crypto important: self-custody, privacy, decentralization, permissionlessness, and user control.

This is what came out clearly from the discussion: mass adoption cannot mean the abandonment of the initial crypto values. It must mean their improvement in usability.

Thank you, Zano, Sumex, Cake Wallet, DigiByte, and all other community representatives who participated in the discussion.

Subscribe to Exolix and all projects participating in the roundtable on X to be aware of upcoming roundtables, campaigns within the ecosystem, product news, integrations, and community discussions.

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The debate between cypherpunk ethics and mass adoption - These individuals discussed the hottest topic in the cryptocurrency world today.

Cypherpunk Values vs Mass Adoption : Exolix Roundtable X Space Recap

Exolix held the second edition of the Exolix Roundtable on June 18 with participants from Zano, Sumex, Cake Wallet, DigiByte, as well as members from the public community

Exolix Roundtable X Space Recap: Cypherpunk Values vs Mass Adoption

Nonce is another term that looks more difficult than it actually is. In blockchain technologies, nonce stands for some number used only once, a value that changes within a particular cryptographic process. The precise function of a nonce varies from one blockchain to another and depends on the situation, but it plays a particularly significant part in Bitcoin mining.

Indeed, as a part of the proof-of-work algorithm, miners keep changing the nonce in the header of a block and trying to produce a valid hash of the block. Once a miner succeeds in producing a block hash meeting the difficulty target set by the network, the miner gains the right to include his or her block in the blockchain. Investopedia calls a nonce the 32-bit number used in Bitcoin mining, which miners keep changing until they generate a hash lower than the difficulty target.

Thus, the basic answer to the question of what is a nonce in crypto is that it is a variable value needed to get a valid result of the cryptographic process. In mining, the nonce allows miners to find such a block hash, which will be accepted by the network. In other blockchain implementations, nonces also facilitate ordering of transactions, prevent their replay and prevent possible reuse of the action.

What Is a Nonce in Crypto?
--------------------------

Nonce is defined in cryptography as a value utilized only once in a cryptographic operation. It is usually described as "number used once," but in blockchain technology, it may involve something other than a number.

For example, in Bitcoin mining, the nonce is a component of the block header which miners repeatedly alter in search for a valid block hash. In case the hash does not comply with the current difficulty of the network, the miner alters the nonce and starts another attempt at generating the desired hash.

That is why the nonce has a strong connection to the proof-of-work system since it allows miners to alter a certain variable in their search for the required hash. The miner is not completing a logical puzzle but rather tries different combinations to get an acceptable hash.

### Simple Nonce Meaning

The base nonce definition is:

-   A one-time value

-   A varying number when mining

-   The part of the block header in proof-of-work algorithm

-   A method of creating a new hash outcome

-   An element for securing the blockchain process

When users want to know what is a nonce crypto, the simplest description will be: nonce is a varying number which assists miners in creating the right block.

If there were no nonce, miners would have less chances to change the content of the block and find the right hash. With nonce, the repeating of hashing becomes possible without modifying the content of the block.

Nonce Meaning: Why "Number Used Once" Matters
---------------------------------------------

The nonce meaning is "number used once". This definition works well, however, in crypto, it requires some additional information.

Nonce is not valued for its uniqueness. The reason why it is important is that each time the nonce is changed, it leads to the change in the input, which in its turn changes the generated hash. This gives an opportunity to the miner to create multiple results based on the almost identical data.

For example, when mining Bitcoins, transactions within the block can remain unchanged, but the miner can always change the nonce, which will lead to the creation of the new hash. And all these hashes will be different since most of them will not match the difficulty target.

### Why the Nonce Must Change

Nonce is important since cryptographic algorithms require unique input to generate random output.

Within the context of blockchain technology, nonce can assist in:

-   generation of diverse hash values

-   avoidance of reuse of identical data

-   execution of proof-of-work mining

-   ordering or differentiation of transactions in the blockchain

-   prevention of operation replay or duplication in certain cases

That is the reason why the explanation to what is nonce is not limited to the definition that nonce means a number. It is a temporarily assigned value which makes a cryptographic algorithm run properly.

Nonse is a commonly misspelled nonce and, when users ask what is a nonse or what does nonse mean, they are looking for nonce in crypto, blockchain or cybersecurity.

How a Nonce Works in Bitcoin Mining
-----------------------------------

The nonce is found in the block header in Bitcoin mining. A block header is an integral part of a block since it holds valuable details such as the hash of the previous block, Merkle tree root of the transactions, time-stamp, target difficulty, and nonce.

From the details found in the block header, the miner develops a hash which is basically the fixed length outcome from the block header. Any slight change in any detail of the block header results to a different hash. That is why nonce becomes crucial in mining.

The miner modifies the nonce repeatedly and then hashes the block header. In this way, different nonce makes different hash tries and none is accepted in most cases due to the difficulty target.

### The Mining Process in Simple Steps

An easy way to explain the Bitcoin mining process would be:

-   miner gathers unconfirmed transactions

-   arranges transactions into a potential block

-   constructs the block header

-   picks up a nonce

-   generates the hash of the block header

-   checks if the hash matches the target, if it does not, then the nonce gets changed

-   tries the above steps once again

-   when the miner gets a valid hash, he may broadcast his block to the network

The above steps give the answer to "what is a nonce in crypto" when we talk about proof-of-work mining.

### Why Mining Requires Many Attempts

Bitcoin mining can be described as competitive since all miners from all over the globe try to find out a valid hash before anyone else. In other words, there is no possibility for a miner to predict the proper nonce before its discovery.

This is due to the fact that the only thing a miner can do is to continue hashing. This is where a miner benefits from a nonce, which allows him/her to continue his/her efforts.

Nonce, Hashing, and Proof of Work
---------------------------------

It can be observed that there is an important relationship between the nonce and hashing, as well as proof of work. For this purpose, it can be noted that hashes generated for a block in a blockchain are very sensitive to changes in input data. In case any miner changes a single bit in the block header, then the final hash turns out to be completely different.

Therefore, nonce comes into play as it provides miners with a value which can be varied by them constantly while other values remain the same.

As far as Bitcoin is concerned, the miner aims at generating a hash which would turn out to be lower than the current difficulty level. In fact, the difficulty is set in such a way so that it is able to maintain a consistent rate of blocks generation.

### Why the Hash Must Meet a Target

However, a valid proof-of-work hash is much more than a regular hash. To qualify as valid, the hash has to comply with the requirements set by the network, namely, be sufficiently low in relation to the difficulty target.

The hash is not something that the miner could force out of their calculations. Rather, they have to try different input combinations until a proper output hash appears. One such variable is called a nonce.

Such a proof of work becomes possible because discovering such a hash is quite challenging, whereas the verification can be done easily by others on the network.

### Why This Mechanism Is Important for Security

As the proof of work takes time and resources to create, it is difficult to tamper with the already recorded information on the blockchain. In order to alter an existing Bitcoin block, a person would have to do a proof of work again and then catch up with the current blockchain version.

Nonce is just one element in the system, although it makes the hash search process possible.

Extra Nonce and Timestamp: Why Miners Need More Than One Value
--------------------------------------------------------------

In case of Bitcoin mining, there is only a certain upper limit on the value of the nonce. This implies that miners will be unable to make the nonce infinite. If they try out all the available nonce values, then they will need something else to generate new hash attempts.

This is when the use of extra nonce and the timestamp becomes crucial.

The extra nonce is not like the usual nonce value used in the block header. In most cases, the extra nonce value is used in the coinbase transaction which is a special mining reward transaction. When miners modify the extra nonce value, the Merkle root of the block changes since it forms part of the block header.

Thus, the block hash will also change in such a situation.

### Why the Regular Nonce Is Not Enough

The miner will have to try out millions of possibilities until he comes across a correct hash. The regular nonce itself may not be able to provide sufficient diversity since current mining equipment can go through various possibilities at a fast pace.

More hashes can be produced by changing:

-   regular nonce

-   extra nonce in coinbase transaction

-   timestamp

-   order of transactions

-   other variables in block template

None of this changes the fundamental solution to the question of what is nonce crypto. Regular nonce remains one of the key variables that can be changed by miners. However, this is how it functions in practice.

Nonce in Crypto Transactions vs Mining
--------------------------------------

The nonce does not apply exclusively to the mining process. In certain blockchain networks, the term applies to the transactions' processing procedure. The confusion may arise due to the similarities between a mining nonce and transaction nonce since the former and latter play different roles.

The nonce in the Bitcoin mining process is included in the block header and assists in the searching for proof-of-work hash. The nonce changes in the process of mining.

A transaction nonce in an account-based blockchain, such as Ethereum, indicates the number of transactions that have been sent from a particular address.

### Mining Nonce vs Transaction Nonce

The explanation is simple:

-   Mining nonce - nonce used by miners to validate block hash

-   Transaction nonce - used to define transactions' order for one address

-   Mining nonce - varies when attempting to validate proof of work

-   Transaction nonce - increments for every transaction made from same address

-   Mining nonce - assists in forming blocks

-   Transaction nonce - assists in avoiding duplicate/replayed transactions

As an illustration, the transaction nonce will be equal to zero when the Ethereum wallet sends its first transaction. Then, it is incremented to one for the second transaction from the same address and two for third transaction, etc.

When asking what is a nonce in crypto, one should bear in mind that the answer depends on the context. So in Bitcoin mining, the nonce is a variable used for validation of hash. And in Ethereum-like accounts, it is a transaction counter.

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What a nonce is in cryptocurrency and blockchain technology. Discover how nonces secure transactions, support mining, and play a crucial role in Proof-of-Work consensus mechanisms.

What Is Nonce in Crypto? 

In crypto, a nonce is a value that is used one time during the cryptographic process. For instance, in Bitcoin mining, it forms part of the block header and gets changed multiple times by the miners in an attempt to generate different hashes that fit the difficulty level set by the Bitcoin network

Perhaps the most distinctive feature of the cryptomarket is the meme coins. Typically, a meme coin begins its existence with humor, Internet culture, the power of community and a simple concept. Examples like [Dogecoin](https://exolix.com/currencies/doge){:target="_blank" rel="dofollow"} and [Shiba Inu](https://exolix.com/currencies/shib){:target="_blank" rel="dofollow"} proved how influential the power of meme communities could be, while new projects use the same methods for their promotion.

Despite all the hype surrounding a particular meme coin, its creation requires much more work than just the name and the initial coin offer. Even though a meme-based project is fun and simple at first glance, it should have a concept, a blockchain, proper tokenomics, smart contract development, etc.

Typically, the process of creating a meme coin involves such steps as conceptualization, the choice of blockchain technology, wallet creation, the design of the token, smart contract development, community management and launch. The steps outlined in the reference article are basically the same as the above-mentioned ones, including concept, blockchain technology, tokenomics, smart contract development and others.

What Is a Meme Coin?
--------------------

Meme coin refers to a type of cryptocurrency centered around some internet meme, joke, character, trend, cultural movement, or story. Whereas Bitcoin was designed as digital cash for peer-to-peer transactions, and Ethereum as a platform that runs smart contracts and decentralized apps, meme coins tend to emerge as products of a particular culture before anything else.

While the value of a meme coin may not hinge as much on its technology as other cryptocurrencies, the focus here is on visibility, engagement, virality, and the strength of people's attachment to the idea of the coin. That's what enables meme coins to rise at a rapid pace, but it also makes them very risky.

A meme coin may come as a unique blockchain asset, but for the most part, meme coins launch as tokens running on established blockchains like [Ethereum](https://exolix.com/currencies/eth){:target="_blank" rel="dofollow"} , [Solana](https://exolix.com/currencies/sol){:target="_blank" rel="dofollow"} , [BNB Chain](https://exolix.com/currencies/bnb){:target="_blank" rel="dofollow"} , Base, and [TRON](https://exolix.com/currencies/trx){:target="_blank" rel="dofollow"}.

### What Makes Meme Coins Different?

The characteristics of meme coins include:

-   a simple and recognizable brand

-   strong social media presence

-   huge or funny token amount

-   community-based marketing campaign

-   virality and meme culture

-   minimum functionality at first

-   volatility and speculation

While some meme coins will stay community-related and entertainment-driven only, other coins will acquire additional functionality over time, including staking, NFTs, games, gated community access, merch, donations, and DeFi solutions.

In case you are curious about creating a meme coin yourself, then the first lesson for you would be the following one: a token is just a small part of the project.

How to Create a MemeCoin: Main Steps
------------------------------------

In addition to the token contract, other elements are needed to build a meme coin. The process can be straightforward if the coin is created using the pre-existing blockchain; however, overall, many aspects should be considered when launching the coin, including marketing strategies, security, token economy, and community-building.

It should start with the selection of the coin's concept. This might be anything from the joke to an internet meme or mascot to a symbol or cultural concept; however, the concept must be clear, considering the nature of a meme coin.

The next step involves selecting the blockchain for launching the coin. As opposed to creating a new blockchain, launching a coin on an existing blockchain will be less costly and time-consuming. In most cases, Ethereum, Solana, BNB chain, Base, and TRON are used.

### Basic Meme Coin Creation Process

Steps generally include:

-   meme coin concept and branding;

-   choosing the blockchain platform;

-   tokenomics design and supply distribution;

-   smart contract development;

-   contract testing and auditing;

-   liquidity and launch mechanics preparation;

-   website creation and setting up social media accounts;

-   community building prior to the release;

-   token listing on the decentralized exchange.

These are the actual steps required to create a memecoin. Some parts are technical while others are cultural. Technical aspects refer to the specifics of how the cryptocurrency functions. Cultural aspects deal with how interested people are in your token.

### Why is It Important to Plan Everything?

Many meme coins fail since they are launched way too soon. All the person does is to deploy his/her cryptocurrency, add liquidity, publish something in social media and wait for the response. However, if you do not have an identity, launch mechanics, active communication and some level of trust - your project will probably fade away.

Step 1: Create a Concept and Meme Identity
------------------------------------------

Building the concept comes first when learning how to develop meme coin. In other words, a coin requires its identity before getting a token contract, otherwise, it is likely to become another product with nothing special in terms of community engagement.

In general, a coin identity can revolve around an animal, cartoon character, meme that was popular on the internet, trending cultural movement, entire universe of stories, or common approach to life shared by your audience. Moreover, a good idea for a meme coin should be as straightforward, visual, and easily replicable as possible.

Typically, such projects require a name and ticker symbol that is catchy and understandable; a mascot or recognizable visual style; a clear tone of voice; memes and phrases that people can remember and share; social media-oriented design and marketing assets; and some angle to attract a community.

### Why Creating a Meme Is Important

Firstly, it is worth mentioning that meme coins do not usually rely on the initial utility in terms of attracting community members. What really matters in the beginning is how interesting and appealing their brands are to potential followers.

Thus, the more original, unique, and easy-to-remember an idea for a meme coin is, the better chances you have to gain a solid following. Moreover, the concept of the project needs to provide some room for creating posts, stickers, videos, website content, community jokes, and campaigns.

Step 2: Choose the Right Blockchain
-----------------------------------

After that, one needs to choose what blockchain to mint their coin on. Most meme coins do not launch on a novel blockchain but as a token on an existing platform.

The choice of the blockchain will influence transaction fees, speed, liquidity, ease of user access, wallet availability, and how the token is launched. At the same time, the choice will impact what kind of audience your project will have. For instance, a meme coin built on Ethereum will appeal to different investors compared to a coin on [Solana](https://exolix.com/currencies/sol){:target="_blank" rel="dofollow"} , Base, [BNB Chain](https://exolix.com/currencies/bnb){:target="_blank" rel="dofollow"}, or [TRON](https://exolix.com/currencies/trx){:target="_blank" rel="dofollow"}.

### Most Popular Blockchain Platforms

Here are some popular blockchain options for launching a meme coin:

-   Ethereum with its high liquidity and numerous decentralized exchanges (but with gas fees);

-   Solana known for fast and cheap transactions with an active meme coin market;

-   BNB Chain where launches cost less and users have access to a wide variety of retail exchanges;

-   Base which has been building a Layer 2 system and has reduced fees compared to Ethereum mainnet;

-   TRON which is known for being cheap and active with stablecoins; and

-   Polygon that supports cheaper transactions and a good ETH-compatible infrastructure.

The ideal blockchain solution varies depending on the goals of the project.

Step 3: Design Tokenomics and Supply
------------------------------------

Tokenomics is one of the essential characteristics that define how the meme coin will be set up. The token economics include total token supply, circulating and locked/allocated token amounts, liquidity allocations, taxes, burn mechanisms, token holder allocation among others. The issue of tokenomics for meme coins is critical due to the nature of meme coin. 

Meme coins rely heavily on trust, and users might view an ability for the creator to change the fees and have the possibility of removing liquidity as red flags for the project. A funny meme coin requires proper tokenomics from the structure standpoint.

### Key Tokenomics Decisions

As soon as you decided to build your own meme coin, you have to take several important decisions:

-   Total amount of tokens created

-   Circulating token supply at the time of launch

-   Allocation for team or creator of the meme coin

-   Allocation for community

-   Liquidity pool allocation

-   Marketing fund or ecosystem development

-   Burn mechanics

-   Transaction tax

-   Lock or vesting mechanism for tokens

-   Ownership and smart contract permissions

Meme coins use an extremely big total supply of tokens because of the meme concept itself, which often leads to a very small price per token. Despite that fact, it is essential to ensure that the supply is not overly complicated because of the difficulty of market cap calculation.

### Keep It Simple

In general, the best tokenomics for meme coins tend to be quite simplistic. When building a meme coin, it has to be clear how many tokens exist, who owns them, and whether there is a possibility of changing the supply. Some meme coins add transaction taxes for buys and sells; however, it might cause problems since high transaction taxes will discourage the trading on the token.

Step 4: Develop and Audit the Smart Contract
--------------------------------------------

With the concept, blockchain, and tokenomics defined, it is time to move on to the creation of the smart contract. It will be the key part of the whole project as the contract will contain all the necessary details about the meme coin, including token transfers, their supply regulation, and the permissions granted to the creator of the coin.

In most cases, the development team uses the existing token standards rather than developing a coin from scratch. So, for Ethereum, Base, Polygon, and BNB Chain networks, the developers should design an ERC-20-compatible contract. The principle will be similar for Solana or TRON, and so on, although the contract might differ.

### What the Contract Should Contain

The main elements of a typical meme coin contract include:

-   coin name and ticker symbol

-   supply of tokens

-   decimals

-   token transfer functionality

-   wallets' balances

-   approval logic

-   permissions to mint/burn tokens

-   coin ownership control

-   token tax settings, if applied

-   liquidity/anti-bot features, if used

The best way to develop a secure and successful smart contract is to make it as simple as possible. Complex mechanics can cause bugs and distrust. For example, any smart contract with owner permissions, blacklisting options, uncontrolled minting, and tax changes will be regarded with great suspicion.

Step 5: Launch Liquidity and Distribution
-----------------------------------------

Once the smart contract has been created, the next step would be the creation of liquidity and how the token will get into the hands of its users. This is arguably the most delicate process in understanding the creation process of a meme coin, as any weak design will undermine credibility right away.

Meme coins tend to be first listed on DEXs. On Ethereum and other EVM compatible blockchain ecosystems, this typically involves setting up a liquidity pool on the DEX, including Uniswap and PancakeSwap. For Solana blockchains, meme coins are usually launched via their own set of DEXs or through launchpad-type sites.

The presence of liquidity allows people to trade the token. Lack of sufficient liquidity leads to price volatility whenever transactions occur.

### Launch Options

Common launch strategies for meme coins include:

-   Fair launch: no presales or allocation

-   Presale: tokens are provided to early participants before listing;

-   Airdrop: providing tokens to selected parties or community members

-   DEX launch: tokens are available on decentralized exchanges straight away

-   Launchpad: using platforms to help with coin generation and listing

Each option has its own advantages and disadvantages. While the first one looks more friendly toward the community, it may require a lot of marketing effort without initial funding. A presale may attract investment, but it can become an obstacle due to potential insider selling.

### The Importance of Liquidity Trust

It is important to understand that when it comes to meme coins, there should be clarity about liquidity pools. It is crucial to inform about whether it will be locked, how many liquidity tokens will be provided, who manages them, and whether the owner can withdraw them.

Having such opportunities means being able to pull off the rug from under investors' feet. That is why most projects have liquidity locked for a certain amount of time or use additional tools for better visibility. Moreover, it is important to know about the distribution of tokens.

Step 6: Build Community and Marketing
-------------------------------------

The success of the meme coin largely depends on community engagement, which is higher compared to other crypto project types. While the smart contract generates the token, it is the community members that form the movement around the coin. Therefore, marketing efforts have to be launched prior to coin release, and not afterwards.

When thinking about meme coin creation, one needs to consider it as building a social brand that requires followers to participate in the movement, spread memes, discuss project ideas and developments, and engage in various community activities. Without forming such emotional attachment, a coin is likely to remain an illiquid token without any market presence.

Typically, the most successful communities have a distinct tone -- some are humorous and chaotic, some ironic, while others are centered on their mascot or common mission, inside jokes or branding. 

### Core Community Channels

Most meme coins involve several social media channels at the same time:

-   X for greater reach and memes

-   Telegram for instant messaging within the community

-   Discord for organizational aspects

-   website with basic information about the coin

-   DEXTools, Dexscreener, and other similar tools for trade reach

-   various meme contests and other campaigns

-   collaboration with influencers and KOLs

-   content created by community members

In essence, the goal is not only to generate posts, but also to involve the community into participation. As a rule, meme coin owners are actively involved in the marketing process creating all kinds of posts and meme content.

Risks and Legal Considerations
------------------------------

Although it may not be difficult to start meme coins, they are also very dangerous for some reasons. One such reason is that the majority of the projects have been unsuccessful owing to their sole concentration on marketing without giving due attention to issues such as security, transparency, liquidity, and accountability.

In order to initiate your own project, one thing needs to be considered that although the meme coin is launched for fun, the people may invest money in the tokens. In other words, the creator bears responsibility for communicating transparently.

### Main Risks for Meme Coin Creators

Common risks associated with the meme coins creation process involve:

-   Smart contract flaws - faulty coding may result in failure to transfer funds, exploits or tokens lost.

-   Liquidity problems - low liquidity may hinder trading of the token.

-   Rug pull suspicions - unlocked liquidity pools or big balances in the creators' wallet harm trust in the project.

-   Unclear tokenomics - hidden token distribution or adjustable tax rates are considered alarming.

-   Brand protection violations - using trademarks, logos, copyrighted images, names, characters may trigger legal action.

-   Regulatory risk - making claims regarding token prices in promotional materials may be risky.

-   Community backlash - memecoin projects rely much on good communication.

-   Exchange listing - a vast number of cryptos will not be traded on centralized platforms.

### Legal & Compliance Considerations

Legal considerations depend greatly on the jurisdiction, token structure, marketing language and user experience of the project.

Meme coin will be under higher scrutiny if promoted as investment, guarantees profits, uses presales for token sales and gives much power over token liquidity/supply to the development team. That is why developers are recommended not to use such statements as "guaranteed profit", "next 100x" or "safe investment".

In case you need to learn how to start a meme coin cryptocurrency, you need to be transparent regarding the website, tokenomics, contract, roadmap and other elements.

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How do you create a meme coin? Learn the complete process of launching a meme token, attracting a community, adding liquidity, and growing your project in the crypto market

How to Create a Meme Coin? Full Guide

TRC-20 and ERC-20 are among the token standards which are widely used in cryptocurrency transactions. These tokens are crucial for the operation of stablecoins, as [USDT](https://exolix.com/currencies/usdt){:target="_blank" rel="dofollow"} can be found on both platforms. For this reason, comparisons such as TRC20 vs ERC20, USDT ERC20 vs TRC20, and USDT TRC20 vs ERC20 are frequent.

The basic principle behind these standards is easy to grasp: ERC-20 tokens function within the Ethereum platform, whereas TRC-20 tokens belong to the TRON platform. These token standards include the description of the behavior of tokens, i.e., transferring, balance, approval, and wallet/exchange compatibility of the tokens. According to Ethereum's ERC-20 standard, tokens should be made interoperable throughout the Ethereum network. In its documentation, TRON states that TRC-20 is a standard for creating token contracts for the network.

However, for ordinary people, the difference between the token standards lies in price, speed, and network. Transactions using TRC-20 tend to be faster and more affordable. At the same time, ERC-20 benefits from the larger Ethereum DeFi space, liquidity, and developed infrastructure. Guarda's comparison also reveals that USDT on TRON is faster and cheaper, whereas USDT on Ethereum relates to the existing infrastructure of the network.

What Is TRC-20? TRC-20 Meaning Explained
----------------------------------------

TRC-20 stands for token standards that are implemented on the TRON platform. From a simple perspective, the TRC 20meaning denotes an established set of guidelines, enabling developers to issue tokens compatible with the TRON platform.

The token standard plays an essential role as it enables predictability in the usage of tokens. It means that wallets, exchanges, smart contracts, and blockchain software require an established format to identify balances and execute transfers of funds between different entities. TRC 20 token standard offers such a format for those tokens issued using TRON infrastructure.

One of the examples of the usage of the TRC-20 token standard is USDT TRC 20. The reason is that numerous individuals prefer to perform transactions using TRON platform due to fast processing and reduced fees comparing to Ethereum-based payments.

### How TRC-20 Works

TRC-20 tokens are created using smart contracts operating on the TRON platform. The contract establishes terms of transaction, balance monitoring, and user interaction.

The main practical use cases for TRC-20 include:

-   stablecoin transfers

-   deposits and withdrawals from exchanges

-   cryptocurrency transactions

-   transfers between wallets

-   Decentralized Finance operations on TRON

-   token issue on TRON

For ordinary users, the key point is that the tokens should be sent through the TRON platform only. TRC-20 address begins with "T," and both participants in the transaction have to support TRC-20 tokens.

What Is ERC-20?
---------------

ERC-20 is the most recognizable token protocol on Ethereum. ERC-20 provides a common framework that helps create a set of guidelines for creating a common interface for any tokens generated on the Ethereum network, which will allow them to interact with wallets, exchanges, decentralized applications, and smart contracts.

Prior to the introduction of ERC-20, the process of creating tokens was not as organized as it currently is now. Token developers had to write their own logic in order to develop token features. However, ERC-20 helped introduce a unified framework through which token developers can develop token functionality such as transfer, balance, approvals, and supply management among others.

This is why many cryptocurrencies chose ERC-20 as a platform for launching their tokens.

### How ERC-20 Works

The creation of ERC-20 takes place using smart contracts built in the Ethereum blockchain. It defines the behavior of the token and interactions that are possible with it.

Use cases of ERC-20 include:

-   stablecoins, e.g., Tether (USDT) and USD Coin (USDC)

-   DeFi tokens

-   governance tokens

-   utility tokens

-   tokens issued by exchanges

-   real-world asset tokens

-   blockchain-based financial applications

From the perspective of users, it is essential to know that transactions with ERC-20 take place via the Ethereum blockchain. Thus, gas is paid in ETH, and you will need to send the token to an Ethereum address.

In the context of ERC20 vs TRC20, one of the main advantages of ERC-20 is related to liquidity and compatibility with the DeFi and other Ethereum-based ecosystems. The drawback of the protocol, however, is its cost due to expensive gas fees in congested periods.

TRC20 vs ERC20: Main Differences
--------------------------------

The key distinction between TRC20 and ERC20 is a blockchain network used by each protocol. TRC20 uses the TRON blockchain, whereas ERC20 uses Ethereum. It means that the price, speed, format of addresses, availability of the blockchain environment, and user experience when sending or receiving assets like USDT differ.

Despite being completely different, TRC 20 and ERC20 both perform similar tasks. The two protocols provide a way of using tokens within the specified networks. However, the peculiarities of both the environments affect user experience significantly.

### Differences Between TRC 20 and ERC20

The following are the critical distinctions of the two:

-   Blockchain Network: TRC20 works within TRON, while ERC20 operates within Ethereum.

-   Fees: Transfers within TRC20 are more affordable; ERC20 fee varies based on the gas price within Ethereum.

-   Speed: TRON has high transaction speed, and Ethereum has an undefined transaction speed, depending on the current network conditions.

-   Gas Token: TRC20 transfers require TRX gas; ERC20 transfers require ETH.

-   Address Format: TRON addresses start with T, while Ethereum starts with 0x.

-   Ecosystem: ERC20 tokens have better access to Ethereum DeFi environment; TRC20 tokens are actively used for stablecoin transfers.

-   Liquidity: ERC20 tokens are more liquid regarding the involvement in Ethereum DeFi; TRC20 USDT are popular for cheap and quick transfers.

Among all differences listed above, only the cost of transaction may be important for a regular person who needs to transfer USDT. As a rule, TRC20 is chosen because the cost and speed are lower. That's why people compare USDT ERC20 vs TRC20.

ERC20 tokens are still valuable because of Ethereum blockchain ecosystem with its decentralized exchanges, wallets, and other protocols.

USDT ERC20 vs TRC20: Which One Should You Use?
----------------------------------------------

Probably the best practical question about USDT ERC20 vs TRC20 would be to understand the difference between the two types of coins. Even though both USDT ERC20 and USDT TRC20 belong to Tether, they operate on different networks. The first type operates on the Ethereum network, while the second one operates on TRON.

The main difference between them is their respective blockchain network, meaning that other differences will follow from the network difference. Fees, speed of transactions, address formats, and even functionality might become very different because of that, thus, making your mistake choosing between the two potentially fatal. It is extremely important that the network of the coin matches the network of the wallet or exchange where it will be deposited.

For each person, the decision should depend on what they want to achieve in terms of cryptocurrency transactions.

### Why Might USDT TRC-20 Be Preferred?

In general, USDT TRC-20 is preferred by many users because of its cheaper and faster transactions. It is good when you want to transfer USDT to someone else or use stablecoin in everyday crypto payments.

Using TRC-20 makes sense in these cases:

-   when you are going to deposit USDT into a TRON-compliant exchange or wallet

-   when you want a less expensive transfer

-   for a regular and simple transfer

-   when you do not plan to use Ethereum DeFi services

### When USDT ERC-20 May Be Better

For most cases, USDT ERC-20 will be better if the user requires using Ethereum-related applications. The DeFi system on Ethereum is more profound than the DeFi system in other blockchain networks.

ERC-20 might be better in situations where:

-   receiver needs DeFi related to Ethereum

-   receiving platform supports ERC-20 USDT

-   user has enough ETH for gas

-   transaction involves smart contracts/dApps

In summary, TRC-20 will be better in cases requiring cheap transactions while ERC-20 will be better in cases where access to the Ethereum ecosystem is needed. It is imperative that the user should verify which type of USDT the receiver can support before any transaction.

Fees, Speed, and Network Compatibility
--------------------------------------

The most prominent factors that drive the comparison between TRC20 and ERC20 would be transaction costs and speed. Despite the fact that even with the same token the choice of network completely alters the entire process.

In the case of ERC-20, the transaction would take place on Ethereum, which would require the user to have some Ether to cover the necessary fees. The cost may be low at times of decreased network activity and quite high when Ethereum network experiences spikes in activity. Especially for small amounts, the fees may make up the bulk of the transaction itself.

Transactions on TRC-20 occur on TRON, where the user will have to use either TRX or the network's resources to make transfers possible. TRON is widely popular for USDT transfers, where the fees are significantly cheaper and the transactions are processed faster.

### Why Network Compatibility Matters

This point holds true on both sides of the transfer. It is considered one of the major rules for transferring crypto tokens.

For instance, if an individual decides to send their USDT TRC-20, the receiving wallet or exchange should have an option to accept USDT via TRON. Similarly, sending of USDT ERC-20 means that the receiving party would have to accept this token via Ethereum.

A token might be present on several networks at once. However, each token would be different from one another due to being issued on a different blockchain platform.

### Practical Difference for Users

In general:

-   TRC-20 tokens are used when you want fast and cheaper stable coin transfer,

-   while the ERC-20 tokens are used in DeFi applications on the Ethereum Network or for dApp applications,

-   the TRC-20 network will need the TRON network,

-   ERC-20 network will require the Ethereum Network,

-   and any transfer to the wrong network may lead to delays or loss of funds.

And that's why choosing between USDT ERC20 and TRC20 does not involve just costs comparison.

Wallets, Exchanges, and Address Formats
---------------------------------------

Transaction address can easily differentiate TRC-20 from ERC-20 transfers.

Transactions made via TRC-20 are made through the TRON network, while addresses within this network begin with T. Transactions of ERC-20 type take place on the Ethereum network, and all Ethereum addresses have a prefix 0x. This distinction is important due to the fact that the format of the address reveals what blockchain network a particular wallet uses.

In case a user intends to transfer USDT TRC-20, he/she should get access to a TRON address starting with T. In case of a USDT ERC-20 transfer, the recipient's Ethereum address will start with 0x.

### Why Exchanges Show Multiple USDT Networks

USDT is available on many exchanges using multiple networks such as Ethereum, TRON, BNB Chain, Solana, Polygon, and more. This is an advantage, although it also presents opportunities for errors.

When withdrawing and depositing USDT, users must select the network manually. This is where it is crucial to remember about the differences between USDT TRC20 and ERC20.

Always make sure to:

-   selected network during withdrawal

-   deposit network on the other side

-   wallet address format

-   needed gas token

-   exchange deposit instruction

-   minimum deposit amount

-   withdrawal fee

-   network maintenance information

### Wallet Compatibility

However, not all wallets are compatible with all blockchain networks. There could be one that works with Ethereum and ERC-20 tokens but not with TRON and TRC-20 tokens. Or there can be another that works with both but needs users to change the network on the application interface.

This is why people should never take for granted token names alone. Even if it reads USDT, that is not enough, as one has to check the network as well.

In terms of usage frequency between the ERC20 and TRC20 tokens, ERC-20 is popular on Ethereum wallets and DeFi apps, whereas TRC-20 can be seen almost everywhere when dealing with exchange services due to low costs.

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The difference between TRC20 vs ERC20 protocols is basically the network where they are operated. That's why there are differences in fees, speed, address format, and even wallet support, and access to the ecosystem of the platform. 

TRC-20 vs ERC-20: What Is the Difference?

TRC-20 and ERC-20 are among the token standards which are widely used in cryptocurrency transactions. These tokens are crucial for the operation of stablecoins, as USDT can be found on both platforms. 

On June 3, 2026, Exolix organized an X Space involving the Numbers Protocol with the help of a Numbers Intern to discuss provenance infrastructure, the genuineness of digital content, AI-generated media, and blockchain for ensuring the source of content found online. The entire Space can be viewed at the following link: <https://x.com/exolix_com/status/2061457327576817785?s=46>. 

The main topic for discussion was a very common question in the present-day digital world. It revolved around how people could determine if a particular online piece of content was authentic, produced by an AI program, edited, recycled, or taken out of context. Numbers Protocol explained that the infrastructure they had built helped users find the full history of a particular digital item.

### What is Numbers Protocol in simple terms?

Provenance Infrastructure development goes on for both Human and AI. Even though the concept of provenance seems complicated for some, it simply means that it refers to the full history of any object. What we need to pay attention to is the full history of the digital content, be it a photo, video, or any kind of media file available online.

These days, it becomes harder to know if any given content was created by humans, by artificial intelligence, or even using both of these methods simultaneously. Several years back, one could easily distinguish between the content created by AI and human-generated media. Nowadays, however, artificial intelligence has become capable of creating highly realistic images and videos quickly enough, and this ability will only develop further.

Numbers Protocol allows following the full history of any content. One can learn if it was created by a person or artificially, when it was done, which tools have been used, and what edits have been done during that period.

It does not only go about knowing if any content was artificially created. This helps people understand the background completely. For example, if anyone posts an old video and claims that everything happened today, one will be able to check if this statement is true.

### How did Numbers Protocol begin?

We began our work in 2019, before the AI-generated content became ubiquitous. For the first phase, we offered the simplest application - Capture. The idea behind it was rather simple - a user captures a photo using the application and then traces its story since its creation. After the capture, all the changes done to a photo can be recorded as well.

Within the NFT trend, it naturally worked perfectly because it helped people determine ownership and track the story of their digital property, thus enabling them to record content provenance and transform it into NFTs.

Yet, gradually, it became clear that NFTs were only a small portion of a larger goal. Provenance is important not only for collecting items but also for the entire Internet as such. Since our activity takes place online, we need ways to determine the origin of digital content, trace its changes and present it in the proper context.

Therefore, we expanded our goal beyond NFTs to a much bigger challenge of creating a foundation of digital trust.

### Why did AI make provenance more important?

AI has changed the nature of the problem. AI is now capable of producing images, videos, text, and other content much faster than any human being, and it becomes more realistic with each iteration. As a result, there are ever-growing amounts of fake content online, where you cannot tell real from fake or even edited photos and videos.

What we are saying here is not that the AI-created content is inherently bad. AI is extensively used today, and we use AI in our daily routine as well. The problem here is that of transparency.

It should be possible to distinguish whether a piece of content has been created by a human, by an AI, or jointly with the help of an AI and a human being. The problem is of even greater importance for creators. In case one creates something worth his/her attention, be it an image, design, written material, video or social media posts, there needs to be a way to prove one's authorship over the creation.

As AI develops further, human-created content may start to become more valuable, but people should have the ability to prove that they created something and that their content is valid.

### How does Numbers Protocol work?

This can be explained concisely in three steps: capture, certify, and verify.

To begin with, one must capture the content. In this example, the content would be captured by taking a photograph using the application "Capture". As soon as that is done, data like the device used, timestamp, location, among other contextual data would have been captured.

To certify the content, one should make sure that the content is registered on Numbers Network. This creates an immutable log of that information. This gives the content an easily traceable chain of events.

To verify the content, when someone views a photo or video online and wishes to know its origin, they could use our Verify tool. They will upload the content and be able to check details like the author of the content, the time it was created, and its history.

Therefore, there is no need to guess if the content is authentic, modified, AI-generated, or misquoted.

### What makes this different from ordinary metadata?

While normal metadata might be valuable, it can also be removed or tampered with. For example, there are certain platforms that are capable of detecting AI-made content according to C2PA standards. The upside is that this allows recognizing that an image has been created using some kind of AI model.

 On the downside, such data can sometimes vanish after a file undergoes any process, such as uploading and then downloading it again through another software program.

That is why blockchain technology has to be incorporated into our infrastructure as well. Specifically, we use ERC-7053, which makes it possible to append additional data to the history of content creation and upload in a blockchain record. As a result, the reliability of the provenance layer can be improved due to the nature of blockchain records.

We aim at complementing rather than replacing current practices. While C2PA provides description of the content, on-chain data will allow preserving its history.

### Who needs provenance infrastructure the most?

All users of digital content creation will benefit from provenance. Artists, writers, photographers, journalists, or people who are creating digital media need a way to prove the ownership of their creations.

There were users we worked with who had problems due to their works being used without permission. In cases where there was proof of copyright infringement, it is still difficult to prove ownership in legal settings. There were even claims that works were used in order to train AI models.

Provenance allows registering the media from the time of its creation, making the process of proving ownership much easier.

AI companies also need provenance because new regulations will require them to show where the data came from, and whether the creator was compensated for their work.

Provenance is also needed in the field of journalism. Although it is a photograph taken at the right place and at the right time, it does not make it true if the context of its usage is false.

### How can Numbers Protocol help journalists and media teams?

The other crucial scenario for the use of provenance is journalism.

When dealing with breaking news, political elections, social protests, war zones, and conflicts, pictures and videos can be distributed rapidly. But there are always some risks when you want to use the actual content, as the latter can be manipulated easily. For instance, an old picture can suddenly become relevant to current news, while a video shot somewhere else can pretend to capture recent happenings.

Provenance allows journalists to establish the source and history of media files. It can identify the author of content and provide information about when and where the particular image was created.

It can be really helpful for photojournalists who have to document events in war zones because they need to confirm authenticity and integrity of the created content.

In our collaboration with photojournalists and other media organizations, we have seen how powerful provenance could be to support integrity and reliability of news stories.

### What partnerships or ecosystem initiatives are important for Numbers Protocol?

We collaborate with content creators, media firms, copyright societies, and infrastructure builders.

One such effort was called the Creative Origin Alliance. The effort involves associations that value content provenance, creators' rights, and authenticity of media content. A good example is the Design and Artists Copyright Society of the UK.

Our efforts include collaboration with photojournalists, media associations, and even firms based in Taiwan. Provenance is especially valuable to news organizations since their content is usually repurposed by other firms.

Finally, we have made great efforts in expanding upon our Numbers Network infrastructure. Specifically, there is a program geared towards innovative ideas and products that use our infrastructure. The first iteration required relatively strict conditions, focusing primarily on provenance.

However, we expanded this initiative significantly. Today, anyone who can demonstrate the utility of working with Numbers Network can join the program. This is important since the provenance infrastructure gets reinforced when used by many people.

### What role does the NUM token play in the ecosystem?

NUM is employed internally by Numbers Network.

Anything that involves working with the protocol requires the use of NUM. For instance, capturing photos using Capture, registration of contents, appending metadata using ERC-7053, editing, or engaging with the Verify engine may need NUM.

Therefore, this token is involved in activities within the protocol. It is not just limited to being a marketable token. It facilitates activities within the infrastructure for provenance.

Finally, Numbers Protocol itself has existed for quite some time now, meaning that the majority of the vesting for the original tokens have taken place. We also burn NUM quarterly until the number of tokens drops to 50% of the original number of tokens.

There is also staking available, and sometimes, we organize community-based events where participants can win NUM tokens.

### How do you see the future of Numbers Protocol?

The future is in terms of provenance infrastructure for humans and AI alike.

In today's world, it may be tempting to focus on provenance in terms of creators, media houses, and content in general. However, in the coming years, AI agents too will require some sort of provenance in order to prove their credentials.

As automation increases and more work is done through AI, humans will have to know how an AI agent got to its conclusion or came up with whatever result it did. The whole process needs to be clear and provable if the AI agent is doing anything, from producing content to making decisions.

This is why Numbers Protocol could be considered an audit layer for AI agents. While humans may still make choices themselves, those choices will benefit from understanding how the AI process led up to those decisions.

### What is the main message you want users and creators to remember?

If you add value, then you should be able to show that it's your value.

After all, every single person in the audience is human -- not some AI agent. People make stuff. They write stuff, design stuff, and capture stuff through photographs and designs. All of that is valuable.

However, the problem is that the increasing adoption of AI technology makes it increasingly difficult to prove the difference between human-made and machine-made content. And this is why it is necessary for the creator of this content to start thinking about provenance.

Numbers Protocol is just one way out of many. The point is, you need to do something.

And, if you truly value the content you've created, then find a way to prove that it's yours.

Final
-----

Both Exolix and the Numbers Protocol X Space demonstrated the importance of provenance infrastructure in the era of AI-generated content.

With more content being created with the use of AI, edited photos, and synthetic media being used and shared online and even AI-generated posts, users require better solutions that will help them validate the content they consume. This is what Numbers Protocol attempts to do with its development of infrastructure enabling certification and verification of content provenance.

Special thanks to Numbers Intern for participating in our session and sharing information about Numbers Protocol, the importance of content provenance, and how blockchain can be used to guarantee authenticity and transparency.

Don't miss any further Spaces, ecosystem news, token integrations, campaigns, and discussions by following Exolix and Numbers Protocol on X.

There's more coming.

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Exolix organized an X Space involving the Numbers Protocol with the help of a Numbers Intern to discuss provenance infrastructure & the genuineness of digital content

Numbers Protocol & Exolix X Space Recap

On June 3, 2026, Exolix organized an X Space involving the Numbers Protocol with the help of a Numbers Intern to discuss provenance infrastructure, the genuineness of digital content, AI-generated media, and blockchain for ensuring the source of content found online.

Tokenized stocks are one of the topics in the real world asset space which is getting the most attention now. With traditional finance coming increasingly closer to blockchain technology, more platforms are researching how they can tokenize their stocks on the blockchain.

In its simplest form, tokenized  stocks are tokens issued using blockchain technology which give exposure to various stocks of companies like Apple, Tesla, Nvidia, and Microsoft. Instead of purchasing stocks through an exchange from a broker, users would purchase a token which tracks the value of the stock.

It should be noted that not all tokenized  stocks have the same nature. Some may hold actual company shares with a custodian/broker whereas some may offer purely price exposure to the stock without the holder owning it. The distinction is crucial since it has a big impact on shareholder rights, dividends, custodianship, regulation, and risks involved.

Tokenized stocks crypto products aim at creating greater accessibility, programmability, and liquidity for stock exposure through the use of blockchain technology.

What Are Tokenized Stocks?
--------------------------

Tokenized  stocks are cryptocurrency tokens that represent ownership interest in the shares of publicly listed corporations. In place of purchasing a particular stock via a normal trading account, one might invest in a crypto token representing ownership interest in a stock.

For example, the token could represent the value of a Tesla, Apple, Nvidia, or some other listed stock. The token would trade in a venue capable of handling tokenized stock, sometimes with advantages not offered elsewhere, including fractional shares or extended trading hours.

Thus, when considering buying a token, the buyer must ask the most basic questions about its value:

-   Is the token actually based on real stock?

-   Who owns the actual stock?

-   Can the token be cashed out?

-   Do dividends exist?

-   Do the holders have any shareholder rights?

-   Under whose law is the product regulated?

In simple terms, tokenized stocks attempt to bring exposure to the stock market into the crypto world. Nevertheless, how valuable, secure, and regulated this exposure might be is contingent upon the exact structure of the product.

How Do Tokenized Stocks Work?
-----------------------------

In a traditional stock market, an individual buys stocks via a broker who provides access to the exchange and takes care of custody, settlement, and shareholder management through an infrastructure provided by finance regulators.

With tokenized stocks, the scheme changes. On a certain platform, an issuer lists or creates a blockchain token, which serves to reflect the value of the physical stock. Again, depending on what kind of product we are dealing with, the token can represent shares kept by the custodian or serve as some kind of synthetic asset tracking the underlying price without holding any actual securities.

The simplest way to illustrate such a model would be:

-   there is a physical stock of the company

-   there is a platform or a service provider creating a token associated with that stock

-   the token is created on the blockchain

-   the token is bought and sold on the platform

-   the token reflects the price of the underlying stock

-   custody, redemption, and rights depend on the structure chosen by the issuer

Thus, the question of how tokenized stocks work has no universal answer because it is dependent on the particular type of product.

### Backed vs Synthetic Tokenized  Stocks

Tokenized  stocks that are set up in such a way that they have backing from real shares require that the stock itself should be held and then tokens issued from them. Ideally, the user needs to know how he can validate the backing, custody issues, and also redemption possibilities.

In other cases, tokenized stock may not necessarily have underlying stock backing but only give price exposure to the holder of the tokens. This may prove to be beneficial for trading purposes.

Tokenized Stocks vs Traditional Stocks
--------------------------------------

Tokenized stocks are different from traditional stocks in that both allow for the trading of public company stocks but remain different securities.

The traditional stock refers to the regulated security where a buyer acquires legal stock exposure after purchasing the stock using a broker. Additionally, they get the possibility of having other rights such as shareholder and dividend rights.

In contrast, the tokenized stock refers to the stock whose existence is based on the blockchain technology. This means that the buyer might either have backing of the shares in their purchase or not.

This difference matters significantly in evaluating both advantages and disadvantages of each product.

### Main Differences

Tokenized  stocks come with capabilities that conventional stocks cannot guarantee, which include:

-   fractional ownership through tokens on blockchain

-   opportunities for 24/7 or extended hours trading

-   quick transaction settlement between the parties involved on the platform

-   seamless connectivity to cryptocurrency wallets

-   opportunities for investors from countries where there is restricted availability of brokerage services.

On the other hand, regular stocks are more associated with legal certainty due to factors such as:

-   proper regulation by brokers

-   investor security measures in place

-   established markets for stocks

-   voting in some instances

-   dividends paid out through the traditional process

-   proper record of ownership.

In conclusion, although tokenized stocks and other crypto-based investments can be highly beneficial, they cannot be regarded as alternatives to regular stocks.

Why Tokenized Stocks Are Becoming Popular
-----------------------------------------

Tokenized stocks are on the rise because they reside at the crossroads of conventional stocks and the world of cryptocurrencies. They combine the familiarity of stock investments with the adaptability of blockchain-enabled assets.

It comes down to common sense for most investors why that would be a good thing. Stocks are easy to understand, but accessing brokers' services might be complicated due to geographical restrictions, account requirements, market opening hours, minimum trades, and settlement procedures. In this regard, tokenized  stocks strive to make equity investing more adaptable and convenient.

This is especially important to keep in mind when considering users who are crypto native, either because they have stablecoin, trade digital assets, or use wallets built on blockchain technologies. These people might see tokenized  stocks as an integral part of the cryptocurrency market rather than going through the effort of withdrawing money and accessing brokers.

### Key Reasons Behind the Growth

The need for tokenized stock is caused by the following:

-   The desire to gain fractional exposure to large public corporations

-   The interest in continuous trading throughout the day and night

-   The rise of real-world asset tokenization

-   Liquidity of stable coins and native crypto capital

-   Faster settlement compared to other models

-   Increased accessibility for those who are not part of conventional brokerages

-   Future integration into DeFi platforms

The trend toward real-world assets has also made tokenized  stocks more relevant among crypto products. There are numerous examples of tokenized treasury bonds, tokenized funds, and credit markets on chains. Stocks appear to be the next logical step for these projects.

Tokenized Stocks Crypto: How They Fit Into the RWA Narrative
------------------------------------------------------------

Tokenized  stocks form part of the larger RWA story. As for cryptocurrencies, RWAs refer to physical and traditional financial assets digitized through blockchain. Some examples of RWAs include government securities, private loans, real estate, commodities, funds, and equities.

On this note, tokenized stock crypto assets are among the easiest-to-understand RWAs. The asset in question is known to most people, what is new here is the method by which access and ownership management are achieved.

Unlike conventional stocks, tokenized  stocks provide access to stock holdings not only through brokerages but also across the entire spectrum of the crypto space. In doing so, it makes possible the easier application together with stablecoins, wallets, DeFi projects, and other on-chain products.

### Why Tokenized Stocks Matter for RWAs

The importance of tokenized stocks crypto is that they demonstrate how finance and cryptocurrency worlds overlap practically. They:

-   Connect stocks of publicly held companies with blockchains

-   Allow exposure to expensive stocks by buying portions of them

-   Make fast settlements possible among users

-   Expand possibilities of trading for cryptocurrency-only users

-   Provide additional options of collateral in DeFi

-   Extend on-chain finance principles to assets that are not native to the world of cryptocurrency.

Tokenized stocks are often compared to tokenized Treasuries and stablecoins since all of them seek to bring financial assets into the realm of digitalization.

### The Bigger RWA Opportunity

Mainly, the primary opportunity does not just end at the level of simple trading. Should there ever be assurance, regulations, and liquidity regarding tokenized stocks, it is possible to include such tokens in complex financial instruments in time.

For example, people can use tokenized stocks crypto in digital wallets for collateral, as well as trade them against stable coins, among others.

Where to Buy Tokenized Stocks
-----------------------------

Tokenized  stocks can be bought from platforms that have been regulated, designed, or are otherwise authorized to trade such assets in their own jurisdictions. Tokenized  stocks are not universally available to everyone and vary depending on the country of operation.

Take Kraken, for example, has xStocks, which include tokenized  stocks and exchange-traded funds open to qualified investors, where it promotes round-the-clock trading operations on workdays. In addition, Kraken says that its xStocks have been issued by Backed Assets through Payward Digital Solutions Ltd, a Bermudan-registered digital asset company.

Robinhood recently rolled out stock tokens to its EU investors to gain exposure to American equities through its European crypto platform. It highlighted the launch of stock tokens as one of its tokenization ventures that involved real-world assets and its future Layer 2 blockchain.

### What to Check Before Buying

When determining where to acquire tokenized shares, the user must first ensure that:

-   The service offers support for the chosen country

-   The security is collateralized or synthetic

-   It is the issuer of the tokens

-   Who owns the underlying share certificates

-   The ability to redeem

-   If dividends are paid

-   Trading hours are known

-   Commission and spread costs are provided

-   Any investor protections are available.

It is critical to note that tokenized shares do not guarantee the same legal benefits and advantages offered by traditional securities. While a token can track the price movements of companies like Apple, Tesla, Nvidia, or ETFs, it does not provide voting rights or ownership of the underlying share certificates.

Main Risks of Tokenized  Stocks
-------------------------------

While the tokens provide more flexible ways of exposing oneself to equity, there are risks involved that stock investors are perhaps unaware of and unprepared for. In particular, there is no guarantee that one will own a regular stock when buying a tokenized version of the latter via a regulated broker.

One needs to know about tokenized stock in advance, as to whether it offers actual ownership, how it is issued, and under what conditions. Does it provide an actual backing from physical shares, and what happens if the issuer or the platform is shut down or faces problems?

This is important since a tokenized stock requires a number of trust elements, such as those of the issuer, custody holder, broker, blockchain, exchange, and so on.

### Key Risks Associated With Tokenized Stocks

The main risks involved in owning tokenized stocks crypto are:

-   Custody risk: the underlying stock is held by another entity, therefore users' security depends on its trustworthiness

-   Issuer risk: failure or freeze in activities, improper management of backing, can cause losses or delays for the owners of tokens

-   Legal risk:  tokenized  stocks may not provide all the same rights as regular shares

-   Redemption risk: users are unable to redeem tokens for their underlying stocks

-   Liquidity risk: lower trading volumes can make it hard to trade

-   Price-tracking risk: prices may diverge from the stock prices

-   Regulatory risk: restrictions can prevent access to certain markets or products

-   Dividend and voting risks: tokenholders might be disadvantaged in relation to other shareholders

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The tokenized stocks crypto are blockchain tokens that provide exposure to publicly traded stocks. 

Tokenized Stocks: What is it?

Tokenized stocks crypto products aim at creating greater accessibility, programmability, and liquidity for stock exposure through the use of blockchain technology.


The Exolix cryptocurrency blog is dedicated to providing useful trading tips, guides. More guides, trading tips and latest crypto news.

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