TYSlearn: Difference Between Crypto Tokens & Coins
Crypto is one of the most trending topics in the world and is expanding like wildfire due to its high global adoptability rate. Whether it’s the concept of earning more money with rising crypto prices or whether it’s the fact that people are looking to move towards digital currency, there is one thing that is for certain. Crypto is in and everyone wants to be part of the action. But does everyone truly understand crypto? That is one issue that has not been resolved, even though the technology is a decade old. People are still falling for scams and are losing their money on uneducated decisions. We as a company want to make sure that we do all we can to make our users and the whole crypto community feel safe and relaxed while trading so I will continue to write short blogs educating all of you about some important to know details of the world of Crypto.
While there are people that use the terms “Coin” and “Token” interchangeably, we can confirm that they are two different concepts with a few similarities. While most of them are completely technical, after reading the explanation below, I think you will catch on.
A crypto coin is a digital currency that has its own Blockchain. Crypto coins are also known as Cryptocurrency or Native Coins and that is pretty much it with the main feature being that Coins have their own Blockchain. Some well-known examples of Crypto Coins are the Original Bitcoin, Litecoin, Ethereum & Monero.
So as discussed before, A coin has its own blockchain but a Token does not. A token runs on another blockchain. It is essentially the same thing but operates on a different Blockchain. The most common example of this is the ERC-20 token which is the title given to any token using the Ethereum Blockchain. Some examples of Tokens are Tron, Tether, Chainlink, and Tyslin.
The functionality also differs between Tokens and Coins but to sum it up briefly, Coins can only be used for Payments in the sense that items will be worth something and you can purchase those items with your coins. Essentially working on the same concept as FIAT money except digital. Tokens on the other hand are basically more like shares. More commonly known as Crypto equity or Crypto shares, they are commonly used to raise funds in crowd sales, used for voting rights in major decisions and represent shares in a company.
In conclusion, the main difference is that Coins run on their own Blockchain whereas Tokens do not. Coins represent money while tokens represent shares. Which one would you rather have and why? Which one is more valuable at the moment? What is your favorite coin and favorite token? Keep a look out for Tyslin’s TYS Token as they go on sale soon. As always, feel free to leave me your thoughts and queries in the comments below and we will feature you on our platform. I hope I was able to increase your knowledge of Crypto and hope to see you soon!