Welcome to Crypto Jargon, In this episode we break down the terms: Token Swap, Token Burn, EATER ADDRESS and VANITY ADDRESS All in connection to cryptocurrencies and blockchain technology of course. So let’s start with what is a Token Swap? First, a reminder about tokens (in case you missed the episode where I explained the difference between coins and tokens) these are the cryptocurrencies that are built on top of another platform, in the form of smart contracts, and they don’t use their own blockchain. They utilize the blockchain of the platform they’re built on. like Basic Attention Token (BAT) or OmiseGO (OMG) which are built on the Ethereum platform and they use Ethereum addresses and its blockchain. So in some cases, projects that based their tokens on an existing blockchain decide later on to migrate to their own main net blockchain in order to have more options and control over their currency, like it happened to TRON and EOS last year. After the migration, the token becomes separated and can be used as a payment unit for certain purposes. That token is no longer a token but it can be considered a coin and the old version of the token is not compatible with the new version of the token. Therefore, you need to make a swap of those tokens and usually, the swap would be at 1:1 ratio but it could be different. sometimes, you can be rewarded with more tokens of the new token than you had previously because the total supply might be reduced. some coins do that in order to create more scarcity and raise the value of their cryptocurrencies. so token swap is literally swapping of the old tokens with new tokens. When there is a change migration from a token being based on a different blockchain to the token being based on its own native blockchain. Now the next term is Token Burn and this is the destruction of a certain number of tokens or coins in order to reduce their number in circulation in order to create scarcity. On the whole, token burn is a deflationary measure helping to increase the token value and to retain the confidence of the token holders. First of all, this strategy allows reducing the total supply and thus increasing the market value of tokens. Usually when a company burns or locks a number of tokens it causes the price to increase due to the law of supply and demand. Even just the news about upcoming token burn can significantly drive up the prices on exchanges. Also, this is the way of maintaining stability and minimizing possible fall in the prices. Examples of token burns are Binance Coin (BNB) and Kucoin Shares (KCS) both of which have regular token burning which is public and publicized in order to maintain transparency. The public record of this process is known as Proof Of Burn and is covered in another episode of Crypto Jargon which you will find linked in the description of this one. And here comes the next term Eater Address Well, this is the address used in proof-of-burn algorithms to store the coins that can never be spent. Eater addresses are valid addresses that were generated randomly and not from a specific private key. Since you cannot backward-calculate a private key from a public address, these eater addresses are basically unspendable. so, these are the addresses where tokens are being sent to during the process of token burning Here is an example of an Eater Address and the amounts of tokens that were burnt or locked in it. And this is another example, This is an Eater Address for Bitcoin and these are the bitcoins that were locked in that eater address they can never be spent. so make sure that you do not send bitcoin to that address. Lastly, there’s also something called Vanity Address. it sounds fancy, right? It’s actually a Bitcoin wallet address that contains a number of letters that you can choose yourself. Like this one here, that I created. and I selected “YourName” followed by the rest of the auto-generated alphanumeric characters. The address also has to begin with the digit or else it will not be associated with the Bitcoin blockchain. so I hit to leave that “1” at the beginning of the address. If you want to create your own vanity address, there is a free service and I will drop the link in the description below so make sure you check this out Enjoying this content? Go check out Crypto Jargon : The Ebook out now on Kindle. It’s an Amazon bestseller and it’s the most up to date cryptodictionary with over more than 700 terms, acronyms and trading slang related to cryptocurrencies and blockchain tech. Just go to OJJORDAN.COM/CRYPTOJARGON and grab your digital copy today.