Coin Vs Token

Are you confused about Coin and Token?what its meaning? and What are the differences between Coin and Token?
Then this article will help you to know all useful things about Coin and Token.
Today there are more than 1500 Cryptocurrencies in the market and we can divide it into two parts first one is coin and second one is Token.

Coin

We can also divide Coin into two subparts the First one is Bitcoin and second is Altcoin. Bitcoin is the main cryptocurrency coin.And all other coins like Ethereum, Ripple, Litecoin etc are termed as altcoin or alternative coins because these coins are alternative to Bitcoin. Mostly altcoins are developed by modifying bitcoin's source codes or they are developed at the time of bitcoin Hardfork..
Now the question is what is Hardfork? So In simple term, Hardfork is a process in which bitcoin's existing source code modifies where some old protocols are replaced with new protocols and this process is known as bitcoin's hardfork. This is a very similar process to upgrading an old software to solve some bugs. And at the time of bitcoin's hardfork, some new coins are also developed such as Bitcoin cash and Bitcoin Gold etc.

coin

Token

A Token is also a part of cryptocurrencies, it is a kind of currency which is associated with any project and developed to access services related to that project. As you all know that cryptocurrency is a decentralized currency, and in today's market there are too many projects available that are based on cryptocurrency. So, these projects develop their own tokens to access their services from all over the world.

Like bitdegree, Bitdegree is an educational platform based on cryptocurrency if you want to study any course through bitdegree then you can use their token for that course.

simple-token

Difference Between Coin and Token

1- Coins and tokens are almost same but the main difference between them is in their structure. The coin is a complete currency which is use to access any services anywhere. But Tokens are a complete project which is used to access only those services which are related to that project.
For Example, If you purchase clothes from blackberry showroom then you have given some point which you can redeem in your next shopping. Then these points works as a currency in blackberry showroom but if you redeem these points in any other showroom then the value of these points are zero. so token is also based on this concept. Where you can not use any tokens to access any service which is not associated with it

2- The Second difference is that every coin has their own blockchain. But tokens are based on any other coin's blockchain.Like Etherium is platform where ERC20 tokens gets developed. So tokens are simple to create in comparison of coins.

Coins-vs-Tokens-1

We hope this article helps you learn about Coin and Token, their meanings and difference between them.

Do let us know your thoughts in the comment section below and if you liked this article, then please subscribe to our YouTube Channel for cryptocurrency video tutorials. You can also find us on Twitter, Facebook, Instagram, and Telegram.

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