Coin Vs Token: What's the difference? - Developcoins
Coin Vs Token, what is the difference between coin and token exactly? - It is the common question in everyone’s head and makes newbies wonder to get an accurate concept about coin and token in crypto world. This article is to guide to clear the difference between coin and token and their clear use-case.
This info is provided by the Developcoins, which is the Best Crypto Token Development Company stands in the Cryptocurrency industry for more than 5+ years. The experiences made us provide informative knowledge about coins and the token differences in a simple way as possible.
Table of the Content
- Reason for Confusion Between Coin and Token
- What is Coin?
- What is Token?
- Difference Between Coin and Token
- Simple Creation Process of Coin and Token
Reason for Confusion Between Coin and Token
Before we move on to the topic what is the difference between Crypto coin and token, we can see what makes peoples to lead to this confusion.
- Coins are referred to as token and vice verse.
- Mislead newbies in the crypto world.
- Confusion in the concept between coins and token because it both can be used as currency but where and how brings the difference between them.
- While coins can buy other coins and tokens can also be purchased by coin but not another way around. This is also one of the major reasons for the confusion.
These are some of the common points results of the confusion and mislead for new people to the cryptocurrency.
What is Coin?
Coins are digital money, which is widely known as altcoin (that is ‘Alternative of Bitcoin’) which is now stored in the digital cryptocurrency wallet. These coins can be used for the purpose of only purchasing like selling and buying in any field which accepts the crypto coins. The famous coin in Cryptocurrency is Bitcoin, that is very first launched Cryptocurrency by Satoshi Nakamoto and its value is still in peak as an unbeatable one.
The open Blockchain concept usage in the coin made anyone can join the network and participate as well as in financial transaction.
What is Token?
Token is a digital asset, which has some value for itself. The tokens are easily developed and cost-effective while comparing to the coins, this made it get more preference and high usage one. The tokens can be used only for which domain it is created. Example: If the token is created for the movie ticket then it cannot be used at the music hall. This is the simple concept of the token.
Difference Between Coin And Token
The above concept of ‘what is what’ is already created an idea about the difference between them. Here is a much clear explanation about the complete difference between them. The coin and token creation process itself varies, which means that they have differed from the base but the use-case remains the same with some limitations for itself.
When the coins are planned to create, then a new blockchain should be created for it but the tokens can be created on the existing blockchain which is the reason for the cost-effective.
The simple creation process of coin and token
Here is the simple creation process of Crypto coins and tokens. This crypto coin is developed based on the Decentralized distributed ledger, which makes the things transparent as well as without third party involvement. Most of the crypto users start to say cryptocurrency is the future of the currency because it is trait.
While on the other hand, the tokens are created in the available blockchain. The examples can make it much clear to get a better understanding of the concept.
Example: When Bitcoin or Litecoin is created, a new blockchain is created for it, where all data are stored and a network is formed. In the blockchain, the transaction details are validated and stored publicly but securely without third party aid or involvement.
But when the token like ERC20 is created, it is developed based on the ethereum blockchain (which is already created and available) and data are stored in ethereum blockchain as well as all financial transaction data.
Now, it will be much clear about the coin and token concept plus their differences. If the usage of the coin or token is tempted to create a new Crypto coin or token then approach Developcoins. Developcoins is the Best Cryptocurrency Development Company, which provides end-to-end Crypto Token Development Services in the global market. Their services are Spectacular which made them get a special place as a Reputed Ethereum Token Development Company in the Blockchain Development Industry.
If you wish to create a Crypto coin or token for any purpose?