Let's discuss the difference between Coin & Token
Assalamu Alaikum
How are you? I am also very well by the grace of Allah. Today, the topic I want to discuss is Coin & Token.
There are many types of cryptocurrencies in the crypto market. However, cryptocurrencies can be divided into two categories. One of these is called a coin and the other is called a token. Coins are operated through the block chain system. For example, Ethereum has its own block chain and Ethereum's coin is called Ether. Similarly, if we talk about other coins, then Bitcoin has its own blockchain. When these Bitcoin or Ethereum coins are traded, they go through their own blockchains.
Suppose you give Ether to a person then your transaction will go through the Ethereum blockchain. In the same way if another person gives you Ethereum or Bitcoin or any other coin then the coin will go to that person's blockchain. So now the question is what is that coin? The main function of coins is to act as currency. Means you can exchange anything. Ether, Bitcoin, solana, bnb, dot etc are coins. There are many other types of coins but these are popular coins. You can earn bitcoins by mining bitcoins but currently the number of bitcoins is decreasing so much bitcoins are not available by mining and after the last halving.
So now let's discuss the token among you. Tokens do not have their own blockchain like coins, tokens are controlled on other coins' blockchains. For example, Ethereum has its own blockchain and the name of the coin is Ether and the token that operates on the Ethereum blockchain is BAT,BNT. The notable difference between coins and tokens is that coins do not move from one place to another, only the amount of coins changes, but tokens move from one place to another.
Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.
Upvoted! Thank you for supporting witness @jswit.
Twitter post link
Although I have a lot of experience with the difference between Coin and Token, I appreciate your presentation! Thank you.
You explanation with example should be really helpful for newbies to understand the topic well.
You have explained it very well that what is the difference between a coin and token but surprisingly majority of people think that both are same where as the reality completely opposite..
Honestly there are many of us who don't know the difference between coins and tokens. Thanks for explaining things beautifully.
Very good explained. I look forward to more good articles from you in the future.
Nicely explained. I was also very confused about the difference between coin and token in my early days of crypto.
Nice post about Coins and Tokens bro. I used to think that coins and tokens are the same thing. Your post changed my misconception. Thanks for sharing such a helpful post.