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Topic: What is the difference between a "coin" and "token"? - page 5. (Read 8173 times)

newbie
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Coin is a cryptocurrency Protocol.
Example:  Bitcoin, Ether, NEO, WAVE, OMNI, NXT, Counterparty

Token is an App that can be built on top of the protocol.
Example: TenX is built on top of Etherum protocol, GAS is built on top of NEO protocol

Hope this helps!

What do you mean by “built on top of”? I understand the concept of gas price and gas limit.
I guess my question really is... are these tokens operating on the same network?
Are token transactions uploaded into the same transaction pools and included in the same blockchain?
Mined/ authenticated by the same nodes?
At the same time as the native coin?
How do I find out if a unit is a protocol or token of what protocol?

I know it’s allot of questions. Thanks for helping understand tokens vs clones.
newbie
Activity: 22
Merit: 0
So if you all says token is instrument and coin is currency. Why instrument has a price on coinmarketcap?
newbie
Activity: 24
Merit: 0
In basic crypto terms, Coin refers to a digital currency whereas Token refers to a digital utility token/points.
full member
Activity: 266
Merit: 100
write in google "difference between coin and token"
you can find a good explanation video in youtube
full member
Activity: 140
Merit: 100
For the little that I know, coins are coins created from source codes or other currencies with ltc, or even code itself, so it uses its own mining network.

Tokens, on the other hand, use the base of another currency, in which case a currency based on eth or waves is created, and these currencies use the own mining network of those currencies to make their transactions.
full member
Activity: 130
Merit: 100
According to the article which I've found:
What is a token?
A token is an accounting unit that is used to represent a digital balance in a certain asset. Accounting for tokens is maintained in the database on the basis of blocking technology, and access to them is done through special applications using electronic signature schemes.


And there are different types of tokens: equity tokens, utility tokens, asset-backed tokens.

I do not agree for 100% that coins are like money and tokens not. It depend on the type of token! If it is an equity tokens they are representing the company shares.
If it is an utility tokens they show some value within the business model of the online platform (reputation, scores for certain actions, game currency). And if it is an asset-backed tokens they are like digital obligations for real goods or services (kilograms of carrots, hours of work of the builder, etc.).
member
Activity: 299
Merit: 10
Founder & Core Team @ Edge Network
Many people use these interchangeably - and incorrectly so! A coin is a unit within a cryptocurrency protocol, for example Bitcoin, Eth, XRB, SIA. A token is a unit of exchange tied to an app built on top of a protocol. Both are tradable, which may well be where the confusion comes from.
member
Activity: 154
Merit: 10
coins and tokens are essentially the same thing, it might be that projects call it another way in order to prevent regulation or not to attract too much attention. How these tokens or coins work is very similar to shares, they are distributed to investors and are trading on exchanges, which is what shares do. No one calls them shares though because that would indicate that they are securities, and securities are by the SEC something that has to be reported, delivered and regulated on. No one wants that so they end up calling the shares tokens or coins. Either way it's the same thing and you won't be right or wrong calling one thing or another.
member
Activity: 98
Merit: 10
My jaw drops off because of how confusing you make this topic.

Token (in blockchain context) - unit of blockchain software.

Coin (in blockchain context) - token, used for trade.

All cryptocoins are tokens. Not all tokens are coins. For example, a smart contract in Ethereum blockchain is a token because it is a software unit inside Ethereum virtual machine. But contracts are not used themselves as a trade medium. They are just sets of rules and conditions that distribute Ether coins.
member
Activity: 169
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Trying to be someone... someday
So... if Ethereum price drops consequently all the Tokens created on that platform will drop too?
sr. member
Activity: 882
Merit: 250
All coins refer to cryptocurrency (like ETH, Bitcoin, DASH etc), while tokens are analogous to shares. This is like another way of financing projects of a common infrastructure that could not be financed previously.
member
Activity: 122
Merit: 10
the terms are created and evolve as they are needed, and there is not always clear agreement about what they mean.
Two terms used to describe units of blockchain value are COIN and TOKEN. Their meaning and usage overlaps considerably and they are often used interchangeably, but — strictly speaking, at least — there are some differences.
full member
Activity: 266
Merit: 100
Coin's have there own blockchain and tokens are app made on those coin's blockchain.
Example Ethereum is a coin having it's own blockchain while Monetha is a app developed on Ethereum's blockchain.
member
Activity: 105
Merit: 10
More...

https://blog.chronobank.io/token-vs-coin-whats-the-difference-5ef7580d1199

Function vs form

Very broadly, a crypto coin is just that: a coin, or means of payment, whilst a token has wider functionality.

The express purpose of a coin is to act like money: as a unit of account, store of value and medium of transfer. Coins tend to take the form of native blockchain tokens like bitcoin (BTC), Litecoin (LTC), Monero (XMR), and so on, though they do not have to. ChronoBank’s Labour Hour (LH) tokens, which are hosted on Ethereum, can be considered as coins. Their purpose is solely to act as a form of money, storing value over time and enabling businesses to account and pay for services. They are created as ERC20 tokens for reasons of convenience.

Blockchain tokens do have value, but they cannot be considered money in quite the same way that a straightforward coin can. Tokens are generally hosted on another blockchain, like Ethereum or Waves: 2.0 protocols that allow users to create them using the core coin (e.g. ETH or WAVES — though there’s some debate about whether ETH and WAVES, both of which act like ‘fuel’ for their systems, are coins in the same way that BTC acts as a simple currency).

Tokens offer functionality over and above that of digital cash. They may deliver value to investors, beyond speculative returns; this is one of the purposes of ChronoBank’s TIME token. That can occur in a variety of ways, though typically through buybacks (since dividend payments entail regulatory problems). They may be used to hold votes by the community on key business decisions, or even technical changes to the platform.

This helped me a lot, thanks for the knowledge provided
full member
Activity: 1176
Merit: 100
Vave.com
the token might works as similar function to gives with reference of tasks with the financial operation of the funds transfer as leaves of chance as might with the occupation to follows of the design template of the coins blockchain as referring unit of finest with the nominal value of price per unit with the decision of exchange.



newbie
Activity: 60
Merit: 0
In practice, the line between coins and tokens is not clear and sharp. Both are used to transfer value, as a means of payment, in a similar way to that both USD and shares are used to reward people for work (though predominantly the former). As I understand it a coin is strictly a currency that can be traded, and accepted by people buying and selling things unilaterally in the same cryptocurrency. A token can also be regarded as currency but mainly within the business operations and transactions of the company that issues it andn the economic system it creates.

 
member
Activity: 210
Merit: 12
1. Coins or Cryptocurrencies
These are digital currencies like Bitcoin in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. They are operating independently of a central bank.
Soon every fiat currency may become a cryptocurrency, in that case operating with central banks. This is what Singapore has started with their Ubin project.
2. Utility tokens
The utility tokens are services or units of services that can be purchased. As describes in Balaji S. Srinivasan post, these tokens can be compared to API keys, used to access the service.
They are a way to fund projects of shared infrastructure that couldn’t be funded before. To enable such ecosystems to be built some tokens can be “pre-mined” in addition to be sold in “crowd-sales” during tokens launches.
member
Activity: 588
Merit: 18
The difference between coin and token is that they have their own independent systems, software and independence from the central authority. Bitcoin is a coin. For example, Ethereum, Next and Wave are also a coin. The difference is that these systems have a software that allow them to issue tokens on themselves. Thus, tokens are a unit type bounded by central authority (Like Ethereum) and having limitations. I think it is possible to say that the decentralization idea is incompatible. Coins include tokens Smiley
member
Activity: 84
Merit: 12
According to https://blockgeeks.com/questions/what-is-the-difference-between-coins-and-tokens/

Coin is strictly a currency that can be traded, and accepted by people buying and selling things if those buyers and sellers choose to accept the coin. And a coin has its own blockchain or equivalent, and is not built on another like Etherium.

But a token is something that can be built on another platform, like Etherium, and a token actually plays role within the business operations and transactions of the company that issues it.
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