If you are crypto investors or just crypto enthusiast then you heard about Tokens
Everyone is familiar with Bitcoin and almost cryptocurrencies but only crypto enthusiasts know about Tokens existence.
If you already know about Tokens and still confusing what actual difference between Tokens and Cryptocurrency Coins then this article is for you.
Ok, now let’s dive into actual differences.
Coins are independent because they have their own blockchain to function.
Like Bitcoin and Ethereum both have their own blockchain for working but Ethereum is open to creating a token using their blockchain.
On the other hand, the
Token creation option is in the hand of Coin also they can set some parameters to create a Token.
But creating a token is easier than building a
The best example is Ethereum based tokens (ERC-20) if you want to create an ERC-20 token than you just need to develop a smart contract if that contract passes some parameters than you are the creator of a new token within 2 or 3 days!.
Coin main function is. It is a medium of exchange like your paper money.
You can use coins to buy or sell any goods or services.
Tokens can be used as coins but they have broader usages than a coin.
For example, a token can perform the functions of the digital asset, represent a company’s share, give access to the project’s functional and many more.
Obviously, when a coin has it’s own blockchain network then it is open to everyone to m
You already know that tokens are built upon the coin blockchain that’s why they don’t have mining power.
Coins can be forked.
That means coins blockchain network can be split in.
Basically, there are 2 types of fork one is Hard Fork another Soft Fork.
they can do that by exiting coin blockchain and build there own.
Above are some major differences between cryptocurrency Coin and Token.
But here in t
For example, Ripple. In my opinion, Ripple is a coin because it had its own blockchain network.
One major difference is it is not mineable, rather than mining, Ripple works by consensus.
I am not going to write about Ripple working process, but majority people confuse about tokens and coins like in ripple case.
An easy way to see which is Token and which is Token is coinmarketcap.com website.
This website tracks all details about coins and tokens, with the help of website you can check full details about coins like Ripple and also it shows it is Coin or Token and Mineable or Not.
Below image shows a Ripple detail.
This image shows Bitcoin details.
From the above images you can clearly able to see which coin is mineable and which is not, also you can find out which is a coin and which is token.
In below image, you can see details about Augur token.
With the help of coinmarketcap, you can easily find out which is Coin and which is Token.
Still in confuse??
If you’re still in confuse what is a difference between coin and tokens then I have a simple example for you to explain the
Let’s imagine Blockchain is the Internet, if you want to connect to internet then you need a device like Mobile or PC and then you need a browsing software or app to connect your device to the internet.
Devices you use to connect to the internet is called as Coins in crypto space and software or app that installed on the
One thing is, coins have their own Blockchain but only one Internet is connected the whole world.
From below examples, I believe that you’re able to find which are the tokens in the crypto world and understood the difference between Coin and Token.
There is no big difference between coin and tokens but both are needed to grow crypto world bigger and better.
Because Coin is providing a Blockchain platform for creators to use this revolutionary technology to help mankind.
That’s why most of the Blockchain startups are using Token as their financial fuel.
If you have any suggestions or any points to add then feel free to mentions those in comments.