Great post dear op, you have pointed a common mistake that mostly member do even i am included. Means, even those who knows the difference between these two terms but still use one in place of other. We should follow the rules and use only that which is correct term.
Your explanation is a good reminder for those who already knew it but it is a hard explanantion for those who are reading or getting familiar it for the first time. I think you should add some examples too. Like for the token you could say any ERC-20 token based on Ethereum Blockchain or any BRC-20 token based on BTC blockchain.
And for the coin you could say BTC is a coin because it has its own blockchain while BRC-20 tokens are based on BTC blockchain. Well again, you make a good post keep it up.
Great Thanks @Faisal2202, yes I think it's a reminder, because I believe most of member already know about that, but maybe some seniors forgot too to call or say token as coin.
Main differences between coins and tokens are
- A coin has its own blockchain. Whatever its blockchain is, whatever its algorithm is: either Proof of Work, Proof of Stake, etc. It has an own blokchain.
- A token does not has its own blockchain. It is built on another blockchain and if that blockchain die, stop working, that token stop working too.
- In other words, tokens are like parasites on other blockchains and tokens on a blockchain will need that chain native coin for transaction fee. ERC20 tokens need ETH for fee, BEP20 tokens need BNB for fee.
theymos' explanations on
Definition of tokensThanks for the reference, it's really helpful, especially for me as a newbie on this forum. Those long explanation is very clear to explain difference between A token and Coin.
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Hmm, Quite an Interesting topic at least it's not a redundant one, as for how to get merits, what is post quality, how to trade, etc etc.. Respect your different take and for guiding the new ones on the basic difference between the Tokens and Coins.
⚫ With that I have an investment guide for the new ones who are inserted in long-term investment it would always prefer the Coin investment on behalf o the Token because in the Coin there is a whole bussnies ideology and ecosystem support to the project which gives the worth to the feasible investment to the ecosystem users and other Bussnies Retailers.
⚫ At the same time token has lower usability anticipation most of the tokens are governance tokens and for a limited range of utility which decreases the investment capital and attraction of the institutional funding.
Thanks for saying that it's not a redundant, because I think this is just a reminder. Regarding to how to ger merits, sometimes I need to do a hardwork to make a post that can be qualified as a quality post/thread, so I need some references from you or other senior in this forum how to get merits, hope I could develop myself better.
I have accepted that language changes. I used to get arguments about the origins and now i just don't care anymore. I've seen even talented developers using term "native token" about their incentives in L1. At that point i got frustrated and decided that this is not worth my time anymore so i completely stopped trying to preach the origins to everyone.
People have been using name shitcoins and memecoins more often then meme tokens or shit tokens so i am assuming it have been a lost battle for a while now. I don't really care. People who care understand the difference and people who don't care... Well i don't care if they do. It's not like they have even any say in the matter.
Why don't you care? Shouldn't fellow forum members be mutually beneficial to one another ?, so as to create a forum environment full of knowledge and understanding. I feel the warmth of the forum all this time, I think we should care about each other, right?
