Altcoins Talks - Cryptocurrency Forum
Learning & News => For Beginners => Basic Questions about Cryptos => Topic started by: jakeshadows27 on May 25, 2018, 02:22:34 AM
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im just confusing what is some difference between coins and token what is better to have?
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Coins have their own independent blockchain. They can either be bitcoin derived blockchain like Litecoin, Dogecoin or Native Blockchain like Ethereum, Ripple.
Tokens don't have a separate blockchain, they operate on top of other blockchains like the ERC20 tokens operating on Ethereum and NEP 5 tokens on NEO
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Coins have their own independent blockchain. They can either be bitcoin derived blockchain like Litecoin, Dogecoin or Native Blockchain like Ethereum, Ripple.
Tokens don't have a separate blockchain, they operate on top of other blockchains like the ERC20 tokens operating on Ethereum and NEP 5 tokens on NEO
So meaning all ERC20 altcoins are not coins but token and they are using the blockchain of others like eth blockchain? Am I right?
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Tokens are utility that usually resides on top of another blochain but coins are alternative to bitcoin .
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Coins have their own independent blockchain. They can either be bitcoin derived blockchain like Litecoin, Dogecoin or Native Blockchain like Ethereum, Ripple.
Tokens don't have a separate blockchain, they operate on top of other blockchains like the ERC20 tokens operating on Ethereum and NEP 5 tokens on NEO
So meaning all ERC20 altcoins are not coins but token and they are using the blockchain of others like eth blockchain? Am I right?
Yeah, you got it right. If you got doubt check for some ERC20 tokens in coinmarketcap.com (http://coinmarketcap.com). I would suggest you check Tron (TRX), right now it is a token. After June 21, Tron will be migrating to its own blockchain. So TRX will become a coin. Same for EOS.
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Coins have their own independent blockchain. They can either be bitcoin derived blockchain like Litecoin, Dogecoin or Native Blockchain like Ethereum, Ripple.
Tokens don't have a separate blockchain, they operate on top of other blockchains like the ERC20 tokens operating on Ethereum and NEP 5 tokens on NEO
You are right mate about the coins, And if I am not mistaken tokens are called utility token.
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Coins have their own independent blockchain. They can either be bitcoin derived blockchain like Litecoin, Dogecoin or Native Blockchain like Ethereum, Ripple.
Tokens don't have a separate blockchain, they operate on top of other blockchains like the ERC20 tokens operating on Ethereum and NEP 5 tokens on NEO
good, clear explanation :)
concerning what's best, i think that an independent blockchain always gives additional trust and value, nevertheless utility tokens don't need to have an independent blockchain to operate in full...so i guess that it just depends on the coin/token.... there are also lots of useless coins that have their own blockchain and their only purpose is transactions.... and a lot of high value tokens... ;D
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im just confusing what is some difference between coins and token what is better to have?
I think the coin has its own Blockchain, but the token does not have its own Blockchain, so it's like the etherum that houses tokens like lina, savedroid, hot, and more.
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Токены работают по тем же технологиям, что и монеты, но при этом ... Эти жетоны обычно запускаются как ICO как способ финансирования...
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It seems to me that the key is to have your own blockade, but functional. A coin is a dollar in your pocket, and a token is an equity in your safe.
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Tokens are utility that usually resides on top of another blochain but coins are alternative to bitcoin .
You are right but most tokens resides on ethereum network or as we call it ERC-20 tokens.
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The difference between coins and tokens are, coins have its own block chain while token does not have its own.
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Coins are digital money that are fungible,divisible,acceptable,portable,durable and have an encryption techniques that stores value over a period of time.
Tokens are digital asset/share which can be used by a holder as method pf payment inside a project.There is no need for an encryption techniques when creating tokens.
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This very good question in my opinion. because I also don't really understand about the difference in coins and tokens. and I also add the question if the coins with different tokens can be exchanged with coins or not?
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im just confusing what is some difference between coins and token what is better to have?
Coins have their own blockchain while tokens do not have. Tokens are used in a bounty as payment for the bounty hunters
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great question. As my beginner, I also don't really understand the difference between tokens. as I know, if the coin is like bitcoin and an alternative coin. and tokens are rewards that will be given by the ICO for the bounty and airdrop. if I'm wrong, please correct my answer.
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Coins have their own independent blockchain. They can either be bitcoin derived blockchain like Litecoin, Dogecoin or Native Blockchain like Ethereum, Ripple.
Tokens don't have a separate blockchain, they operate on top of other blockchains like the ERC20 tokens operating on Ethereum and NEP 5 tokens on NEO
Thanks for an opportunity to learn with you my friend because im also confused the difference between coins and tokens.
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I have been confuse by these two before two and it seems others were able to answer the question and I have some additional information as well from this article. https://medium.com/@bonpay/what-is-the-difference-between-coins-and-tokens-6cedff311c31
To quote from this article if you don't want to open it.
Coins are just method of payment while tokens may present a company’s share, give access to product or service and perform many other functions. Coins are currencies that can be used for buying and selling things. You can buy a token with a coin, but not vice versa. Coin operates independently, while token has a specific use in the project’s ecosystem.
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Coin, you can have it by buying or mining.
Tokens, made by ETH smart contracts, are very risky to buy tokens but if you have a great analysis you can buy them.
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"I think Coins are digital money that can be exchanged, can be shared, received, and can store value for a certain period of time.
As well as Tokens are digital assets used by their owners as payment instruments in a project in the Crypto world."
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Coins have their own independent blockchain. They can either be bitcoin derived blockchain like Litecoin, Dogecoin or Native Blockchain like Ethereum, Ripple.
Tokens don't have a separate blockchain, they operate on top of other blockchains like the ERC20 tokens operating on Ethereum and NEP 5 tokens on NEO
Great explanation mate. That was brief and understanding.
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Tokens and coins are different. The coin already has its own platform when launched. Whereas tokens are attached to other coin platforms to get prices. Therefore, making a token is easier than building a coin that we build on our own blockchain or platform.
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Coins, since its inception, have their own platforms. This is very different from tokens. Which is a token is a coin that depends on the coin. Therefore, these tokens are easier to make, while coins are not easy to make.
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This difference in coins and tokens is from the platform. Coins have their own platform, while tokens don't have a platform. Tokens stick to coins that have a platform. That's why tokens are easier to make.
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Tokens are all on Ethereum’s wallet, and everything else is coin
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im just confusing what is some difference between coins and token what is better to have?
For me, tokens and coins are most likely the same and it differs only on the understanding of each and everyone.
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im just confusing what is some difference between coins and token what is better to have?
The token is the way that projects use to take capital from investors. Every people has a private token and usually base on Ethereum platform and use ETH wallet to contain token.
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Some bounties reward bitcoin or eth but mostly are rewarded with tokens.
Actually coins and token are the same which both are cryptocurrency but of course there's also a difference between the two in which coins had it's own blockchain in which the tokens doesn't have and only dependent on ethereum platform in most cases.
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Differences between Cryptocurrencies: Coins and Tokens
1. Structure
Coins are essentially digital financial assets. They are currencies in the real sense of the word because they are capable of being exchanged and used for trading. Tokens are also digital financial assets. But rather than being the actual assets in themselves like the coins, token is a representation of the actual financial assets, reflecting value upon entering the blockchain; they are separate entries on the blockchain and facilitate largely the creation of several other applications that are decentralized.
2. Infrastructure
While the Coins use a unique and independent blockchain for each of their variety, the Tokens can have several entries into the same blockchain. In essence, each Coin has its blockchain completely independent of any and all other Coins. This is not the same with the Tokens. We can find instances where several Tokens are built upon and entered into the same blockchain.
3. Creation
In creating Coins, there has to be a complete modification of the protocol from scratch to accommodate the unique features of each coin. This is not so with tokens. Creating tokens is much easier. To create new tokens, one does not have to create new blockchains from scratch or begin to modify the codes that exist on the particular protocol. All of the tokens, being but representations of digital assets, use the same codes and protocol upon entry of their values on the blockchain. One can create token with merely a few negligible modifications to the protocol, and this is only in very few circumstances.
4. Ease and difficulty of creation
Due to the need to have a separate set of codes and particular protocols, be they new or modified, in the creation of cryptocurrency Coins, the level of difficulty involved is comparatively higher. With the easily adaptable nature of Token codes and protocols, and the ability to have each new Token entered on the blockchain using the same standard protocol/template, creating tokens is far more easy and convenient in general.
5. Platform for Operation
Coins by their nature and mode of creation are designed to operate by themselves independently. Coins share this unique feature with the everyday currency bills we find in our society. The ability to use the cryptocurrency Coins to trade as well as a unit of measure and exchange of financial assets is what makes it unique and gives it satisfaction of the appellation of ‘cryptocurrency.’ The Tokens, on the other hand, are not capable of being operated in isolation. They are not in themselves direct financial assets. They are rather a representation of digital financial assets as discussed. Thus, the tokens have to be based upon another platform, such as Omni and Ethereum, for them to exist and operate. They are not capable of direct entry on the blockchain.
Source: The Differences Between Cryptocurrency Coins and Tokens (https://cryptoverze.com/the-differences-between-cryptocurrency-coins-and-tokens/)
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Token is using erc20 by etheteum blockchain, but coin usually they have own or native blockchain, truly erc20 is part of coin
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In my opinion Coins can be use in any minor transaction while token is just for a major one. But sometimes it is use interchangeably.
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Coins have their own blockchain, tokens do not have it.
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coin; own block blocker and mining is a name that can be done. for example neo, waves, bitcoin, btw. and token are the projects that use their infrastructure. coins with their own block chain are more valuable than tokens.
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The difference between coins and tokens are, coins have its own block chain while token does not have its own.
i like this comment, simple but very solid. token below the coin, and coin have its blockchain such ethereum and ethereum token for example XYO, MIDEX, and many other
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Actually coins and tokens are the same as both cryptocurrency but of course there is also a difference between the two where coins have their own blockchain where tokens do not have and only depend on the ethereum platform in many cases. Some prizes reward bitcoin or eth but are mostly valued by tokens .
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Coins have their own blockchain, tokens don't have it. There are 2 kinds of tokens which are utility and security token. Utility token is born for the specific purpose of a project, a security token is considered as electronic stock.
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The token is usually called the Ethereum ECR-20 Asset, while the coin is a coin. The advantage of tokens compared to coins is that transactions are faster than coins because tokens are ethereum assets.
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Coins have their own independent blockchain. They can either be bitcoin derived blockchain like Litecoin, Dogecoin or Native Blockchain like Ethereum, Ripple.
Tokens don't have a separate blockchain, they operate on top of other blockchains like the ERC20 tokens operating on Ethereum and NEP 5 tokens on NEO
So meaning all ERC20 altcoins are not coins but token and they are using the blockchain of others like eth blockchain? Am I right?
Yeah, you got it right. If you got doubt check for some ERC20 tokens in coinmarketcap.com (http://coinmarketcap.com). I would suggest you check Tron (TRX), right now it is a token. After June 21, Tron will be migrating to its own blockchain. So TRX will become a coin. Same for EOS.
Good clarification. So now we know what is the difference between tokens and coins we can determine why it is use token or coins in some particular project.
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Of course there is also a difference between the two where coins have their own blockchain where tokens do not have and only depend on the ethereum platform in many cases. Some prizes reward bitcoin or eth but are mostly valued by tokens.
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Coins are Cryptocurrencies that has their own Blockchain while Tokens are Cryptocurrencies that do not have their own blockchains but instead is based on an existing Blockchain, just like all ERC-20 tokens, all of them are tokens while Ethereum is a Coin.
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To my understanding, tokens are what investors buy from ico projects and as soon as those tokens are listed on an exchange it automatically becomes a coin.