In the world of Cryptocurrencies, there are a lot of words and terms that might confuse even the sharpest of minds. In this article we are going to discuss two of these words that have been often misunderstood and used interchangeably, these words are “coin” and “token”, and what their differences are.
Coin and Token Defined
To further your understanding of the differences between coin and token it is important to know what Coin is and what Token is.
The Difference Between Coin and Token
The basic difference between Coin and Token lies in the blockchain, a coin has a dedicated blockchain created for it while a token does not run on a blockchain created for it.
Tokens can be used for other things other than payment, tokens can be used to gain access to services or products.