Difference between Coins and Tokens on different Blockchains.
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I have been studying about Tron Blockchain,cryptocurrency,trading and etc for a few days now.
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In today's post we are going to learn Difference between Coins and Tokens on different Blockchains.
The difference between coins and tokens at first glance a crypto coin and a token may look like the same thing .but they are different at their core .All crypto coins are tokens but not all tokens can be crypto coins.
The biggest difference between a crypto coin and a crypto token is that ,the first ones mentioned are virtual coins native to the blockchain .They were created for which means they have a use case for that blockchain.
Meanwhile a token is relying on an already existing blockchain network in order for its crypto users to benefit from its features , in order to understand what a cryptocoin is we can think of the ethereum blockchain.
Which has eth ether this is the native cryptocurrency and has a use case for blockchain offering a reward for all those invested in maintaining the ethereum blockchain and validating the transactions on it. Aside from its utility for its blockchain it can also be transferred from one wallet to another being also used as a store of value ether on ethereum is not the only example.
We can also mention bitcoin .It's equivalent for the bitcoin blockchain other popular crypto coins tokens use the network of an already existing blockchain in order to be transferred or used within it they can have a wide range of purposes such as store of value crypto assets to receive passive income or as governance token.
It is worth mentioning that the fees for transacting tokens are always paid in the cryptocurrency native to that blockchain and there are plenty of examples of tokens that can be found on multiple platforms such as usdt .This is a stablecoin type of token that has the goal of maintaining value with the american dollar .It can be found on the ethereum blockchain ,but also on tron algorand and solana and other popular blockchains.
Examples of tokens on the ethereum blockchain are uni of uni-swap and link of chain-link .we can also mention popular variants on the solana blockchain such as the srm token the utility token for the serum decks are people the governance token of constitution dao.
And launching new blockchain is first to create the token on an already existing blockchain with plans to later move it on its own one meaning it will become a crypto coin so it will have the needed utility for that blockchain the difference between a crypto coin,
and a token is that crypto coins have an essential utility for the blockchain on which they are native while the token is using the already existing infrastructure of a blockchain on which it has a secondary utility but can be found on different networks.
Source: Crypto Coin vs. Token: Understanding the Difference
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Gave some good facts about the difference between coins and tokens. Your post was very effective. Many thanks sister for sharing.
Thank you for reading my post too.
You have shared with us something very important about Blockchain. I learned a lot about this blockchain. In fact, we all need to know about blockchain. Because blockchain is bringing something good between us. So it is good for all of us to know.You have shared with us something very important about Blockchain. I learned a lot about this blockchain. In fact, we all need to know about blockchain. Because blockchain is bringing something good between us. So it is good for all of us to know.
it's really important .welcome.
https://twitter.com/nusuranurnowrin/status/1514491392906903553?s=21&t=OeUzd4hVGCAaoJ6D9iRsaw
Many of us do not understand these two issues in cryptocurrency, we do not try to understand different issues. One is token and one is coin. You have presented the difference between the two in a very nice way.
Sister, you have beautifully explained the difference between coins and tokens between us. This post looks very good and seems very important. Thank you very much.