DIFFERENCES BETWEEN CRYPTOCURRENCY COIN AND TOKEN
Sometimes it seems Crypto Coins and Tokens are the same, but I tell you they are not because there are some strong reasons.
1 Independent.
Coins are independent because they have their own blockchain to function.
Like Bitcoin and Ethereum both have their own blockchain for working but Ethereum is open to creating a token using their blockchain.
On the other hand, the Token is depended upon Coin blockchain to function.
Token creation option is in the hand of Coin also they can set some parameters to create a Token.
2 Creating.
The Process of creating an entirely new blockchain and launching a coin is typically considered to be more complex and time-consuming.
But creating a token is easier than building a new Coin.
The best example is Ethereum based tokens (ERC-20) if you want to create an ERC-20 token than you just need to develop a smart contract if that contract passes some parameters than you are the creator of a new token within 2 or 3 days!.
3 Function.
Coin main function is. It is a medium of exchange like your paper money.
You can use coins to buy or sell any goods or services.
Tokens can be used as coins but they have broader usages than a coin.
For example, a token can perform the functions of the digital asset, represent a company’s share, give access to the project’s functional and many more.
4 Mining.
Obviously, when a coin has it’s own blockchain network then it is open to everyone to mine that coin.
You already know that tokens are built upon the coin blockchain that’s why they don’t have mining power.
5 Fork.
Coins can be forked.
That means coins blockchain network can be split in.
Basically, there are 2 types of fork one is Hard Fork another Soft Fork.
However token is built with the help of coin blockchain that’s why token cannot be forked but, if a token creator wants to convert the token to coin
they can do that by exiting coin blockchain and build there own.
Ok, These are some major difference between Crypto coins and Tokens If you want to read Full Article DIFFERENCES BETWEEN CRYPTOCURRENCY COIN AND TOKEN.
