Difference between a token and a coin
christyolivia last edited by
A majority of people, this is inclusive of investors, assume that coin and token are indicative of the same thing. There is a pressing need to clarify the difference between coins and tokens. Though they are often viewed as being the same, they are not.
While both are theoretically crypto, they were never intended to be categorized as the same. The perception that coins and tokens are the same is a gross misconception.
Coins are created with encryption techniques that change in value over time. It is essentially a digital equivalent to money. They are just like the coins in your wallet, or in your piggy bank. Bitcoin, based on the blockchain, with its public and distributed ledger, is the most popular example.
These are coins based on Bitcoin’s original protocol, developed by Satoshi Nakomoto, and opened to the public. Examples of coins that are based on Bitcoin’s original protocol are Litecoin and Namecoin. An example of a coin that operates on the blockchain, developed specifically for it, is Monero.
The primary traits of coins are:
They are connected to the public blockchain. Anybody can join and participate
They can be sent, received, and mined
Below are a few use case scenarios with Bitcoin (BTC) as an illustrative example.
BTC can be utilized to make payments for services all over the internet as well as in real-world business
It can be stored for protracted periods of time with nothing happening to it; you can subsequently exchange it for something of equal value later
The things that you purchase can be paid for in BTC as well....Read More