Token vs Coins: Understanding The Differences.
The key difference between coins and tokens is that,
- coins are stand-alone currencies, while tokens are built on top of an existing blockchain platform.
- Tokens are used to represent a wide range of assets and utilities, while coins are primarily used as a form of payment or store of value.
• Coins: are digital currencies that operate independently of any other platform or technology. Examples of coins include Bitcoin, Litecoin, and Dash.
• Tokens: on the other hand, are created and operate on an existing blockchain platform, such as Ethereum.
Additionally, the creation of new coins requires a new blockchain to be created, while new tokens can be created on an existing blockchain platform.
