What is the difference between a "coin" and "token"?

[Ertetert]

My jaw drops off because of how confusing you make this topic.

Token (in blockchain context) - unit of blockchain software.

Coin (in blockchain context) - token, used for trade.

All cryptocoins are tokens. Not all tokens are coins. For example, a smart contract in Ethereum blockchain is a token because it is a software unit inside Ethereum virtual machine. But contracts are not used themselves as a trade medium. They are just sets of rules and conditions that distribute Ether coins.

[ArrogantPeacock]

coins and tokens are essentially the same thing, it might be that projects call it another way in order to prevent regulation or not to attract too much attention. How these tokens or coins work is very similar to shares, they are distributed to investors and are trading on exchanges, which is what shares do. No one calls them shares though because that would indicate that they are securities, and securities are by the SEC something that has to be reported, delivered and regulated on. No one wants that so they end up calling the shares tokens or coins. Either way it's the same thing and you won't be right or wrong calling one thing or another.

[giga_999]

here is a good article https://medium.com/startup-grind/understanding-the-difference-between-coins-utility-tokens-and-tokenized-securities-a6522655fb91

[josephdenne]

Many people use these interchangeably - and incorrectly so! A coin is a unit within a cryptocurrency protocol, for example Bitcoin, Eth, XRB, SIA. A token is a unit of exchange tied to an app built on top of a protocol. Both are tradable, which may well be where the confusion comes from.

[skripsup]

According to the article which I've found:
What is a token?
A token is an accounting unit that is used to represent a digital balance in a certain asset. Accounting for tokens is maintained in the database on the basis of blocking technology, and access to them is done through special applications using electronic signature schemes.

And there are different types of tokens: equity tokens, utility tokens, asset-backed tokens.

I do not agree for 100% that coins are like money and tokens not. It depend on the type of token! If it is an equity tokens they are representing the company shares.
If it is an utility tokens they show some value within the business model of the online platform (reputation, scores for certain actions, game currency). And if it is an asset-backed tokens they are like digital obligations for real goods or services (kilograms of carrots, hours of work of the builder, etc.).

[ditinhu]

For the little that I know, coins are coins created from source codes or other currencies with ltc, or even code itself, so it uses its own mining network.

Tokens, on the other hand, use the base of another currency, in which case a currency based on eth or waves is created, and these currencies use the own mining network of those currencies to make their transactions.

[VeeTeaSee]

write in google "difference between coin and token"
you can find a good explanation video in youtube

[WorkPress]

In basic crypto terms, Coin refers to a digital currency whereas Token refers to a digital utility token/points.

[franpote]

So if you all says token is instrument and coin is currency. Why instrument has a price on coinmarketcap?

[Hayek556]

Coin is a cryptocurrency Protocol.
Example:  Bitcoin, Ether, NEO, WAVE, OMNI, NXT, Counterparty

Token is an App that can be built on top of the protocol.
Example: TenX is built on top of Etherum protocol, GAS is built on top of NEO protocol

Hope this helps!

What do you mean by “built on top of”? I understand the concept of gas price and gas limit.
I guess my question really is... are these tokens operating on the same network?
Are token transactions uploaded into the same transaction pools and included in the same blockchain?
Mined/ authenticated by the same nodes?
At the same time as the native coin?
How do I find out if a unit is a protocol or token of what protocol?

I know it’s allot of questions. Thanks for helping understand tokens vs clones.

[h0lybyte]

A token has same aspects of usuage but unless a toke is not listed on exchanges, it couldn't be named as coin.
A coin is an asset that is acceptable in a valid form by most trading platforms, so a token basically has to be eligible for people to accept it before being a coin and the complete coins can be seen on exchanges like etherdelta, coinmarketcap, yobit etcitra

[sotoshihero]

In basic crypto terms, Coin refers to a digital currency whereas Token refers to a digital utility token/points.

Thats also my understanding, and in addition coins like the bitcoin is a single cryptocurrency while a token is under a platform. Under a plat form say for example under Ethereum tere are many tokens that has value too that exists only under the ethereum chain.

[Applechild]

exactly what i have in mind to ask. because I participated in an airdrop, some people were given coin while others were given token and it got me really confused when the manager ask that those who did not receive the token should send their wallet address, i was like ok, but have got some coin here in my wallet. i miss out because i did not understand the difference and even the explanation here is not clear. more light please.

[hiddenmist]

Coin is a cryptocurrency Protocol.
Example:  Bitcoin, Ether, NEO, WAVE, OMNI, NXT, Counterparty

Token is an App that can be built on top of the protocol.
Example: TenX is built on top of Etherum protocol, GAS is built on top of NEO protocol

Hope this helps!

This is the the good explanation of what is the difference between coin and token.

[fuer44]

My jaw drops off because of how confusing you make this topic.

Token (in blockchain context) - unit of blockchain software.

Coin (in blockchain context) - token, used for trade.

All cryptocoins are tokens. Not all tokens are coins. For example, a smart contract in Ethereum blockchain is a token because it is a software unit inside Ethereum virtual machine. But contracts are not used themselves as a trade medium. They are just sets of rules and conditions that distribute Ether coins.

that means, the token is about the contract deal along with the pay (paid) in the etherum virtual machine. then in deposit, and withdraw, and sell to coins (btc, eth, or others). does that mean so?

[cryptotitan]

tokens if the ICO isnt yet finished,tokens will be your coins after the tokens are listed to exchanges like bittrex,poloniex,binance etc.

[mangkanor]

ICOs are offering tokens thats what their unit are being called,pre-ico and ico tokens,once the development and ico has ended they will be listed to exchanges and your tokens will now be your coins,correct me if i am wrong.

[ORiN]

Unlike coin, tokens can be emitted centrally (under the control of one organization) and decentralized (under the control of a predetermined algorithm). Processing and acceptance of transactions can also be performed centrally (all servers are controlled by one organization). The formation of the price of tokens can depend not only on the balance of supply and demand  but also on additional aspects (binding to an external asset, conditional emission rules or remuneration). In addition unlike the coin  token does not have its own block.

[chickenjoy]

As for me i really do not know for now the difference of those two.But on my point of view i think that if you are talking with coins i would say that something that can serve as a payment something used to buy something or something used to trading or doing business while token for me means a share or a given reward for a job or something given by the company as for doing a great job for them.

[sgenuine]

I've heard of some companies offering tokens instead of coins, is this the same thing?

As I understand the token is some kind of security paper. It could be use for buying some things but this is not the main designation. Otherwise coins are more liquid and they exist as a digital cash for trade.