Coins vs Tokens - What's the difference?

OpeningVN

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Quote from: Peanutswar on July 14, 2020, 09:17:34 AM

I will give my insights with the use of the difference of coins and tokens.

Coins are a independent operates in any platform. The example of the coins are :

Bitcoin
Bitcoin Cash
Ethereum
Ripple

Tokens are dependent that requires other platform to operate

Ethereum:

Tether
Chainlink
Maker

Binance coin:

WazirX
Elrond
Kava

Also you can visit the Coinmarketcap for more coins

Tokens :

Code:

https://coinmarketcap.com/tokens/

Coins :

Code:

https://coinmarketcap.com/coins/

Very easy to understand. I have been wondering this for a long time and I really think they are just one, just different names.
With your post, I was able to distinguish them.

CryptocurencyKing

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In simple word Coins is an assets of its native blockchain whereas tokens run on those blockchains. Another way to identify a coins is check whether it is mineable. Almost all coins are mined except POS coins. Whereas tokens cannot be mined.

[/quote]

I never saw this terms to be of any difference. I thought, the term has equal meaning and can be used interchangeably. Better explained. Thanks.

khaled0111

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Quote from: LoyceV on July 16, 2020, 09:56:46 AM

....

Not sure if I understood this correctly but it just makes things more ambiguous to me!
So are you saying that BTC is a coin and Satoshi is a token?! If so, what if I refer to Satoshi as MicroBitcon!
I think I'll simply stick to my beliefs and to the common definition: a coin has and operates on its own blockchain whereas a token operates on another coin's blockchain.

LoyceV

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Thick-Skinned Gang Leader and Golden Feather 2021

I'm with theymos on this one:

Quote from: theymos in October 2017

A cryptocurrency is self-sufficient, not relying on any other cryptocurrency to function (not including merged mining), and requiring its own software. A token works like a cryptocurrency at a high level, but relies on some other cryptocurrency's infrastructure in order to function, and often (but not necessarily always) lacks its own software.

Example 1
You create an Ethereum asset. This asset is entirely reliant on Ethereum's block chain to function. It is a token.

Example 2
You pick out 1 BTC and split it into 100 million satoshi. Each satoshi represents some part of a real-world thing, and gets a special ticker symbol. This is a token because it is completely reliant on Bitcoin's block chain to function.

Example 3
You create an Ethereum contract which allows anyone perpetually to trade 0.1 ETH for 1 YOURTHING and vice-versa. This is ambiguous, and may require moderator discretion. It may be considered a token, or it may be considered merely a flavor of ETH, belonging in Ethereum threads, etc.

20kevin20

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Quote from: -CryptoViking- on July 15, 2020, 04:09:32 AM

When we are talking about use cases, why not mention ETH? Or you think that ETH has less use cases then BTC or not enough to be mentioned?

I personally believe ETH has more use cases then BTC and it looks that this will become even more obvious in future.

The biggest use case of ETH is probably right now being the helipad of more than two thirds of the currently existing shitcoins.

Besides this one, what else do you have? You only get to own a single address per wallet which significantly decreases your privacy, you have a community and price that is very highly influenced by Vitalik's words, we have a PoS system that is still inferior to PoW and some people fear it might not be a success in the end, we have infinite supply etc.

Imagine what happens to the price if Vitalik announced tomorrow that he's quitting the Blockchain life. It'd plummet the same way Charlie Lee's announcement did.

Honest opinion: the coins that will thrive the most will be those which are constantly developed by the community without the need of a team behind it - the same way Bitcoin is developed today. This is supposed to be a completely free thing. I completely understand the existence of teams that work together on coming up with something very interesting and innovative, but putting those teams in front of the coin most of the times will equal failure.

hugeblack

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If this is your way to promote the blog, it is best to change it, and many will ignore clicking on the link.
I read the article, it is beautiful, tidy and rich with useful information. I hope you share it.

I noticed a small mistake in the blog, which is that you set up this table to describe currencies.
It is a mistake and contains coins and tokens, so it is better that you avoid it.

A small adjustment is that tokens can be found in more than one blockchain.

royalfestus

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Sometimes is good to know some things maybe for the knowledge but I feel knowing the difference between Coins and tokens may not be that important to traders to make profit as he feel. If he decides he want our attention on such topic or our money, we might rather put it on google. All I need to know now is the right position to take good profit at the bull market

Blank-Head

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To be simple Coins have own block chain and Tokens don't have their own block chain and they are being operated with other coin's block chain.

As an Example: Ethereum is a coin which is running on Ethereum block chain.

BAT is a token which is running on Ethereum Block chain not in their own block chain.

-CryptoViking-

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Quote from: 20kevin20 on July 14, 2020, 09:16:17 AM

I'd personally advise you to at least write a summary of your article here instead of repeating "I will be showing [..] and I will also tell you [..] and then I will talk about [..]". Before you get to the article, you get exhausted by these wills.

I would argue that the following quote from your article isn't very true:

Quote

Also, coins are often referred to cryptocurrencies with a much narrower use case, most coins are seen as digital payment coins. Like Bitcoin, Litecoin and Dash. Used much like digital coins.

I honestly think Bitcoin has many more use cases than any other token currently has. Tokens are usually taken up high in the sky and praised just for their price to rise - only very, very few actually get to accomplish their goals and the amount of people using these tokens the way they were meant to be used is close to zero. With future updates, Bitcoin will get even better - and stronger, of course.

When we are talking about use cases, why not mention ETH? Or you think that ETH has less use cases then BTC or not enough to be mentioned?

I personally believe ETH has more use cases then BTC and it looks that this will become even more obvious in future.

pakhitheboss

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Quote from: Peanutswar on July 14, 2020, 09:17:34 AM

I will give my insights with the use of the difference of coins and tokens.

Coins are a independent operates in any platform. The example of the coins are :

Bitcoin
Bitcoin Cash
Ethereum
Ripple

Tokens are dependent that requires other platform to operate

Ethereum:

Tether
Chainlink
Maker

Binance coin:

WazirX
Elrond
Kava

Also you can visit the Coinmarketcap for more coins

Tokens :

Code:

https://coinmarketcap.com/tokens/

Coins :

Code:

https://coinmarketcap.com/coins/

In simple word Coins is an assets of its native blockchain whereas tokens run on those blockchains. Another way to identify a coins is check whether it is mineable. Almost all coins are mined except POS coins. Whereas tokens cannot be mined.

CucakRowo

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aka JAGEND.

If you want to promote your website. imo, the thread that you created in here is less interesting.
You should create a thread that contains comparisons, strengths, weaknesses, benefits and so on between coin and token. So that your thread will be more interesting.
You can put a click-bait sentences in your threads, so members in here will be curious to read the whole article COMPLETELY in your website.

JeromeTash

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Heisenberg

Some small corrections;

Quote from: Peanutswar on July 14, 2020, 09:17:34 AM

Coins are a independent ~~operates in any platform~~.

A coin in cryptocurrency terms has its own blockchain it operates in. It doesn't operate in any platform/network.

Quote from: Peanutswar on July 14, 2020, 09:17:34 AM

Ethereum
Ripple

Ethereum is the network or blockchain, Ether is the coin
Ripple is the network/parent company, XRP is the coin/digital asset

Quote from: Peanutswar on July 14, 2020, 09:17:34 AM

Binance coin:

Not Binance coin but rather Binance Chain, Binance Coin(BNB) is the native coin of Binance chain.

sujonali1819

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Need Campaign Manager?PM on telegram @sujonali1819

So I have to visit the site link to read more it? So you are promoting your site in this forum in this way? I have checked the op's post history. Most of the posts on the first page that is included the site link. It's really not good for me (especially in this forum). Yes, you can add the source when it needed that all are doing here. But It's not good that you write half of the article here and refer us to visit your site for the rest of the part of the articles.

note: I appreciate it that you are doing something for crypto users.

sheenshane

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I think it's better if you include the comparisons and also differences about these two stuff that we commonly heard in the crypto community.

Here's my simple understanding between them.

Tokens are dont have their own blockchain and relying on the existing blockchain using a smart contract.

Ethereum, called ERC20
NEO, called NEP-5

Coins have their own value in the market capitalization and also has its own blockchain technology.

If you have summarize the link that you've shared is much more understandable to all newbies.

Peanutswar

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I will give my insights with the use of the difference of coins and tokens.

Coins are a independent operates in any platform. The example of the coins are :

Bitcoin
Bitcoin Cash
Ethereum
Ripple

Tokens are dependent that requires other platform to operate

Ethereum:

Tether
Chainlink
Maker

Binance coin:

WazirX
Elrond
Kava

Also you can visit the Coinmarketcap for more coins

Tokens :

Code:

https://coinmarketcap.com/tokens/

Coins :

Code:

https://coinmarketcap.com/coins/

20kevin20

legendary

Activity: 1134

Merit: 1598

I'd personally advise you to at least write a summary of your article here instead of repeating "I will be showing [..] and I will also tell you [..] and then I will talk about [..]". Before you get to the article, you get exhausted by these wills.

I would argue that the following quote from your article isn't very true:

Quote

Also, coins are often referred to cryptocurrencies with a much narrower use case, most coins are seen as digital payment coins. Like Bitcoin, Litecoin and Dash. Used much like digital coins.

I honestly think Bitcoin has many more use cases than any other token currently has. Tokens are usually taken up high in the sky and praised just for their price to rise - only very, very few actually get to accomplish their goals and the amount of people using these tokens the way they were meant to be used is close to zero. With future updates, Bitcoin will get even better - and stronger, of course.

gocryptowise

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If you are new to this space and you are wondering what the difference is between a coin and a token is, then you are at the right place.

I myself wondered what the difference was between a token and a coin in the beginning. Especially as they were used interchangeably, and sometimes even incorrectly.

In this article I will focus on explaining the difference between a coin and token, I will also give you some insight into each type of cryptocurrency.

I will then give you some examples of different coins and tokens. Additionally, I will give you an overview of different types of tokens that you might have read about before, like; security token, utility token, equity tokens, etc.

As cryptocurrencies are somewhat new and still very much a developing market, there are yet not always agreed on definitions of everything. That means that certain definitions could be described differently, and I want you to keep that in mind.

Learn more here - https://gocryptowise.com/coin-vs-token/

I hope you like it and find it helpful!

Topic: Coins vs Tokens - What's the difference? (Read 271 times)