Bitcoin Forum

I have certain doubts about Coins and Tokens and  are following:
1.Difference between Coin and Token.
2.Can Coin act as token for the transactions within the ecosystem of a particular project like giving rewards and loyalty points?
3.Coins are securities or Utility?
4.Can Token act as a coin and can be used for transaction other than the platform?

In my understanding a token and coin has no vast difference, only a little difference makes names as coin and token.
When an asset is in sales/Ico mode, it is called a tokens.
After it is fully launced and listed on an exchange, it becomes a coin.

Basically, as a function, coin act like money, they may be sent, received nor mined by the miners (act like money). While tokens have a different function besides can be sent or received, such as offer a product or service that a part of the project. Both can use for payment/rewards.

1 Coin builds on its platform called blockchain and token is an asset that created in the platform itself.
2 it can as long as there will be a future roadmap that token will be swap into the coin and then use its own blockchain
3 AFAIK the only coin that i know that not as a security is only bitcoin and ethereum.
4 It can't because the token can only be used on its own platform.

I also don't know before, actually coins and tokens is no difference, only if the coins are full listing on the market and full using the platform, while tokens are usually still in the introduction on ICO and non ICO project

Wrong!

Coin and token both were different read the above most to know their difference!

Coin is built on their own blockchain whether the token just created on other coin's blockchain.

The coin is a virtual currency that can operate individually. The token is a virtual currency that must be based on another virtual currency to function. For example, the Ethereal, NEO, NXT platform can be used to build different types of tokens. The coin was created for use as a currency, a unit of value storage and for transactions. The token is more widely used (of course it can also be used for payment). The token can be a fuel for a network of operations (GAS) or a unit of exchange in an application (CMT).

when it comes to usage there is absolutely no difference between a coin and a token. you can use both in to achieve the same result because they both have value and can be transferred. for example when you want to buy a cup of coffee, you can use fiat, or you can use bitcoin or you can use some shitty ICO token.

but the difference is in how they each work. for example bitcoin is a stand alone blockchain that doesn't rely on anything else. it is also secure and tested properly so that it doesn't have any bugs. it is also accepted and known by most people.
but a token is relying on another blockchain so it  can never be stand alone. if that third party blockchain has issues then the token also has issues. for instance you can see as ETH network clogs up, you can no longer use any tokens either because the network is congested! there is also the problem that nobody knows or uses them and also they are not tested and contain lots of bugs that can and are being exploited.

The coin uses its own platform and functions absolutely independently. The token is created over the existing blockchain or protocol. Typically, tokens represent an asset or function. Since tokens are created as an add-on to the existing blockchain, it's easier to create them. Coins serve as the basis for tokens

This almost got my definition except the part where I get to add that coins have their own blockchain and not rely on the blockchain of another existing cryptocurrency. It is in this view that I refer to all ERC cryptos as tokens because they are either built on the ethereum or Waves blockchain. It doesn't matter if the market price is high or not.

nah that's wrong, token usually deployed under smart contract platform provided by project like ethereum, eos and many more. But coin usually have its own mainnet, blockchain and it's far more complicated to be developed than just deploying an instant and easy token under smartcontract like erc20
also it usually takes few months for developers to release or launch their coin,before that they will test the mainnet until it's secure enough.

If it is not a token but coin then it is not necessarily and mostly security. Ethereum and bitcoin is not a coin, also they are not a security.

Coins has own blockchain and dont use any third party.
Tokens are renting a third party blockchains like NEO and ETH platform

Coins cannot act as token because it is the main product of the projects. unlike tokens are created for other purposes.

a security, as i said coins are created with own blockchain and it is the main product of the projects, it cannot be use as utility particularly for those projects that giving rewards and loyalty points.


tokens can be use for transactions, but cannot be act as coins, most of the tokens created in smart contracts are being swap, or projects decided to create their own coins to be swap to their early created which is tokens to be use to their own platform.

The coin is a crypto currency, which uses its own platform, within the framework of which it is in independent circulation. Coins do not require a different platform, they function on their own block, where they are the home currency. Bitcoin, lightcoin, ethereum are examples of this type. Token (token) - crypto currency, built on the basis of the existing blockade or protocol. Tokens are usually an asset or utility.

Coin is which has own blockchain and dont dependent on other blockchain. such as Btc, dgb ,waves,dash, xcp , xrb,ltc  are the coin.
And token is that discover by the other blockchan/ platform. such as pundi x, tron,golem, etc that are discovered by eth platform.

In my views, Coins are being used for buying and selling things while tokens are used for the platform that can be divided base on it's structure and case. Moreover, tokens are used for ICO payout once bounty campaign is over and will be paid to the bounty hinters as token rewards.

Can you please elaborate why coins cant be used as rewards and loyalty points? Like why they lack that feature?

I have another question
Can we mine tokens? For instance I want to mine Zil. Is that possible?

1)Coins are built on their own blockchain ( example ETH, NEO, Stellar etc) while tokens are generated on coins blockchain platforms.
2) No coin does not act as a token in other ecosystem of the project. But if that other ecosystem of the project have design to give rewards like dividend than you can earn the rewards take example of KUCOIN Shares.
3) about Utility and Security tokens or coins you can find information here https://www.google.co.in/amp/s/cointelegraph.com/news/legitimising-the-ico-token-finding-utility-over-security/amp
4)Depends on the roadmap some tokens are launched on other blockchain platform to raise the funds but later they come up with their own blockchain as per their roadmap example Zilliqa, Quarkchain etc.

I don't know it can or not but I think mining does not provide benefits for tokens because they are built on third party Blockchain, and it has acted as their network, So they don't need to be responsible for securing networks with mining activities

So, a Token cannot be mined, its creation is an organizational process. The coin can be minted. A token is a private monetary unit in a particular ecosystem. The coin has its own blockchain. A token is like a debt, and a Coin is a reward for mining.  Coins can be the basis for creating tokens, but tokens have more features.

Unlike the main crypto currency, the token does not have its own block-chain.
The volume of using the token is smaller than the crypto currency, since the token is originally an element of a closed ecosystem. In this respect, the crypto currency value can be compared with US dollars, and the token - for example, with metro markers.

Token, unlike crypto currency, can be released not only decentrally but also under the management of one organization.
Although the crypto currency is intended for payments and transactions, the token has a much larger scope - it can be used to obtain services or purchase goods as a representation of a shareholder's share in a particular project as the basis for loyalty program, etc.