Cryptocurrency Glossary: Serum
What is Serum (SRM)?
Serum is a decentralized cryptocurrency exchange and its associated utility token. The Serum token runs natively on the Solana blockchain, meaning that transactions take place very quickly. The token is also cross-listed as an ERC-20 token on Ethereum. Serum is also available in a 1 million-token denomination, the Mega Serum. Users can convert SRM to MSRM and vice versa. The Serum Foundation has created a supply cap of 1,000 MSRM, and holders of MSRM tokens are granted special privileges in the Serum ecosystem governance, allowing them to shape the future of the platform.
SRM’s main purpose is to serve as the utility token of the Serum decentralized cryptocurrency exchange, with the Serum DEX being the primary application for which Serum tokens are used..
How Does Serum Work?
Serum works much the same way Ether does. It can be held, traded, and exchanged like any other currency. The Serum team even takes advantage of Solana’s virtual machine to support the execution of smart contracts. Its cross-listing as an ERC-20 fungible token means that it can collaborate in native exchanges with tokens based on the Ethereum blockchain. Due to Serum being implemented on the Solana blockchain, transactions occur at an incredibly fast rate – up to 50,000 or more transactions per second, significantly faster than the 15 to 30 transactions per second on Ethereum.
The Serum Foundation has also developed a specialized version of Serum called MegaSerum. This version of Serum has a maximum supply of 1 million tokens, which are used for governance purposes. Mega Serum holders enjoy special privileges in the Serum ecosystem, such as voting rights, access to exclusive features, and other benefits.
In addition to its utility as a currency, Serum also serves as a platform for decentralized applications (dApps). Developers can use the Serum platform to create and deploy their own dApps. This allows developers to create applications that are secure, fast, and cost-effective.
Serum is a powerful platform that has the potential to revolutionize the way we use cryptocurrencies. It is a secure, fast, and cost-effective way to trade and exchange cryptocurrencies. It also provides developers with a platform to create and deploy their own dApps. With its cross-listing on Ethereum, Serum is well-positioned to become a major player in the cryptocurrency space.
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Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. I am not a financial advisor. All statements are my own opinion.