What is the difference between a Coin and a Token?


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What is the difference between a Coin and a Token?

A cryptocurrency is a coin that is just itself; whether you see it as a store of value or a way to transmit value, its purpose is just to be the coin. It is a unit that is defined/controlled cryptographically.

A token represents something else, as well as being a crypto unit. So a token can have a value and be transacted, but the purpose is to represent a unit of something ELSE - a bit of space, some joules of electrical power, some cycles of processing power, a bit of a utility function, a share of a company (ICO) or other asset (contract) - the token represents something else.

In the current crypto space, the majority of tokens are implemented within existing blockchains - why? Because it takes time and effort to engineer a blockchain, and it requires establishing a network of players that will (as a group) be trusted by participants. Since this is already done by multiple cryptos, a project designing a new token doesn’t need to create a new blockchain; they can piggy-back on an existing blockchain and achieve a high level of distributed security without any effort.

More information: https://coinsutra.com/coin-vs-token-difference-cryptocurrency/