Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Master107 on September 15, 2018, 08:43:38 AM
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Words “coin” and “token” are often used as synonyms and considered by many people as interchangeable. But they refer to two completely different concepts. So why many cryptousers confuse coins and tokens and what is the crucial difference between them?
COIN
Coins have the same characteristics as money: they are fungible, divisible, acceptable, portable, durable and have limited supply. Most ambitious crypto enthusiasts insist that coins will replace conventional money in the future.
TOKEN
Tokens are digital assets, issued by the project, which can be used as a method of payment inside project’s ecosystem, performing similar functions with coins, but the main difference is that it also gives the holder a right to participate in the network. It may perform the functions of digital asset, represent a company’s share, give access to the project’s functional and many more — with the launching of new projects unknown facets of tokens’ functional are discovered. Ticket to a concert, for example, is a “real-life token” — you may use it at a certain time, at a certain place. You can’t go to the restaurant and pay your bill with concert ticket — ticket has its value only at concert hall. Digital tokens are the same — they have certain use case only inside certain project.
SUMMARY
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.
https://medium.com/@bonpay/what-is-the-difference-between-coins-and-tokens-6cedff311c31
https://blog.chronobank.io/token-vs-coin-whats-the-difference-5ef7580d1199
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I also find this in some thread and article :
Coin, They has their own platform or we can say coin can stand alone, but if token, they has an platform from another coin, this like Ethereum, Waves and another coin. So without that coin, the coin can't running.
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good information, I can see both of them are different, thanks for sharing
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I've never even thought there was a difference between coins and tokens. Are they really even different? They mean roughly the same thing.
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if I think if it's still in the form of a Token we can't say coin. but if it's already in the form of a Coin it means that the one that used to be the coin has become a coin. every coin must have experienced tokens. but if the token has never been a coin
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It is considered a token if it runs on a supported blockchain like Ethereum, Waves and Neo. It is a coin if they are developing their own blockchain.
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So true. I agree your opinion about the difference between Coins and Tokens. Coins are only a payment method, while tokens can display company shares, provide access to products or services and perform many other functions. Coins are currencies that can be used to buy and sell things. From the information you have provided so I can distinguish them both well. Thank you for the information.
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thanks for information.
tokens can't exist without coins i believe.
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Coins are coins that have their own platform since birth. Whereas tokens, tokens are coins that do not have their own platform because that is the token attached to the coin platform.