Token and Coin

[livingancient]

Guys help.
I thought before that the tokens and coins are the same bec both are cryptos, but I read somewhere in this forum that coins and tokens are different. And I was confused so i made this thread to hear more answers from different higher rank member here. Thank you so much.

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[mk4]

To summarize both:

• Coin: a cryptocurrency with it's own blockchain
• Token: a cryptocurrency that resides on top of another blockchain(e.g. Ethereum ERC20 tokens)

For an in-depth answer: https://www.cryptocompare.com/coins/guides/token-economies-101-the-difference-between-tokens-and-coins/

[iWGC]

A token is built on an existing chain such as Ethereum, Stellar, Qtum or any other

[shahin_ameen]

here your answers.

It's very important to note that all coins or tokens are regarded as cryptocurrencies, even if most of the coins do not function as a currency or medium of exchange.

"Tokens:
Tokens are a representation of a particular asset or utility, that usually resides on top of another blockchain. Tokens can represent basically any assets that are fungible and tradeable, from commodities to loyalty points to even other cryptocurrencies!

Creating tokens is a much easier process as you do not have to modify the codes from a particular protocol or create a blockchain from scratch. All you have to do is follow a standard template on the blockchain – such as on the Ethereum or Waves platform – that allows you to create your own tokens. This functionality of creating your own tokens is made possible through the use of smart contracts; programmable computer codes that are self-executing and do not need any third-parties to operate. It really is super cool!"

Altcoin:

"Alternative cryptocurrency coins are also called altcoins or simply “coins”. They’re often used interchangeably. Altcoins simply refers to coins that are an alternative to Bitcoin. The majority of altcoins are a variant (fork) of Bitcoin, built using Bitcoin’s open-sourced."

[livingancient]

here your answers.

It's very important to note that all coins or tokens are regarded as cryptocurrencies, even if most of the coins do not function as a currency or medium of exchange.

"Tokens:
Tokens are a representation of a particular asset or utility, that usually resides on top of another blockchain. Tokens can represent basically any assets that are fungible and tradeable, from commodities to loyalty points to even other cryptocurrencies!

Creating tokens is a much easier process as you do not have to modify the codes from a particular protocol or create a blockchain from scratch. All you have to do is follow a standard template on the blockchain – such as on the Ethereum or Waves platform – that allows you to create your own tokens. This functionality of creating your own tokens is made possible through the use of smart contracts; programmable computer codes that are self-executing and do not need any third-parties to operate. It really is super cool!"

Altcoin:

"Alternative cryptocurrency coins are also called altcoins or simply “coins”. They’re often used interchangeably. Altcoins simply refers to coins that are an alternative to Bitcoin. The majority of altcoins are a variant (fork) of Bitcoin, built using Bitcoin’s open-sourced."

Hi,  thanks for the helpful insights. One more can you explain to me what is utility token?
Sorry for many questions I am almost tempt to make another thread for this.

[livingancient]

To summarize both:

• Coin: a cryptocurrency with it's own blockchain
• Token: a cryptocurrency that resides on top of another blockchain(e.g. Ethereum ERC20 tokens)

For an in-depth answer: https://www.cryptocompare.com/coins/guides/token-economies-101-the-difference-between-tokens-and-coins/

Thank you mate for the link you shared, this is a big help for me.

[neo444]

Tokens require another platform such as Ethereum or Omni to exist and operate but Coin is a crytocurrency type which operates independently of any other platform

[Tektesh]

A Coin is a Cryptocurrency which operates independently of any other platform an example of this is Ethereum whereas a Token like golem requires another platform in this case Ethereum to exist and operate.

[Cordenne]

I also have another question to pose, What is an ERC20 tocken? What is it used for? I see this word thrown around allot but I'm not understanding?

[T.Perry123]

I also have another question to pose, What is an ERC20 tocken? What is it used for? I see this word thrown around allot but I'm not understanding?

They are tokens which can be bought, sold, or traded and may also be used in conjunction with Ethereum and represent digital assets that can have a variety of values attached. These tokens don’t have their dedicated blockchain and thrive on Ethereum’s blockchain instead, much like any other token described above.

[trueman1]

tokens are totally different then coins.

token are a virtual coins that are on top of another virtual coin.

for example ethereum have many token that use the etherium network coin to operate.

also you will need to pay gas price to the main coin before you can buy tokens.

[inooll00]

I also have another question to pose, What is an ERC20 tocken? What is it used for? I see this word thrown around allot but I'm not understanding?

ERC20 is a technology based on ethereum using smart contracts. So any transfer the token that supports ERC20 requires some fees and GAS of ethereum and that depends on how many tokens will be transferred.

[bkrobottc]

thank you for all your share. Before I don't care what is coin, what is token. I always call "token" in general. Now I can seperate them

[Yudi96]

The difference is that Coins have their own platform. For example Bitcoin, XMR etc.
While Token is a coin that board platform on a coin. For example ebtg, exrn, ebtc and many others. In essence, if both have their own smart contract.

[ghermghuda]

I learnt tge tokens don't run on their own transactions, that is- they're notbhaving their own blockchain but a coin has

[madlen2018]

At first, I also did not understand the difference between a token and a coin.I was explained that the coin has its own blockchain your desktop wallet. And tokens do not have their own blockchain. For example, all that is stored on ETH wallet or  on the WAVES  wallet  so on is all tokens.