1 yr. ago
(E)
👉for all the noobs out there the difference between coins and tokens:
👉Coins: In the context of cryptocurrencies, a "coin" refers to a digital currency that uses its own, standalone blockchain. Coins are often used as a means of transferring wealth and are seen as a medium of exchange, just like physical currency. Examples of coins include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and many others. Each coin has its own native blockchain.
👉Tokens: Tokens, on the other hand, are a type of cryptocurrency that do not have their own blockchain but live on another blockchain. They are created using the standard protocols of an existing blockchain like Ethereum or Binance Smart Chain. Tokens can represent a wide variety of digital assets or utilities. For example, tokens can represent voting rights in a decentralized organization, assets in a digital game, or units of value for a service. The most common token standard on the Ethereum network is ERC-20.
👉In short, the primary difference between a coin and a token is that coins have their own blockchains, while tokens operate on an existing blockchain. Furthermore, tokens often represent a wider range of digital assets or utilities, while coins primarily function as digital currencies.
👉Coins: In the context of cryptocurrencies, a "coin" refers to a digital currency that uses its own, standalone blockchain. Coins are often used as a means of transferring wealth and are seen as a medium of exchange, just like physical currency. Examples of coins include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and many others. Each coin has its own native blockchain.
👉Tokens: Tokens, on the other hand, are a type of cryptocurrency that do not have their own blockchain but live on another blockchain. They are created using the standard protocols of an existing blockchain like Ethereum or Binance Smart Chain. Tokens can represent a wide variety of digital assets or utilities. For example, tokens can represent voting rights in a decentralized organization, assets in a digital game, or units of value for a service. The most common token standard on the Ethereum network is ERC-20.
👉In short, the primary difference between a coin and a token is that coins have their own blockchains, while tokens operate on an existing blockchain. Furthermore, tokens often represent a wider range of digital assets or utilities, while coins primarily function as digital currencies.
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