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2. Coin Vs Token, what is the difference between coin and token
exactly? - It is the common question in everyone’s head and
make newbies to wonder to get 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 usecase.
3. Reason of confusion between coin and token
Before we move on to topic what is the difference between Crypto coin and token,
we can see what makes peoples to lead to this confusion.
• Coins are referred 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
other way around. This is also one of the major reason for the confusion.
These are some of the common points results of the confusion and mislead for new
people to the cryptocurrency.
4. 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. This coins can be used for purpose of only
purchasing like selling and buying in any field which accepts the
crypto coins. The famous coin in the Cryptocurrency is Bitcoin,
that is very first launched Cryptocurrency by the Satoshi
Nakamoto and its value is still in peak as unbeatable one.
The open Blockchain concept usage in the coin made anyone can
join the network and participate as well as in financial
transaction.
5. What is Token?
Token are 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 movie ticket
then it cannot be used at music hall. This is the simple concept
of token.
6. Difference Between Coin And Token
The above concept of ‘what is what’ is already created an idea
about the difference between them. Here is the much clear
explanation about the complete difference between them.
The coin and token creation process itself varies, which means
that they are differed from the base but the usecase remains
the same with some limitation for itself.
When the coins are planned to create, then new blockchain
should be created for it but the tokens can be created on the
existing blockchain which is the reason of the cost effective.
7. Simple creation process of Coin & Token
Here is the simple creation process of Crypto coins and tokens.
This crypto coins 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 are future of the currency because of it is
traits. While in the other hand, the tokens are created in the
available blockchain. The examples can make it much clear to get
better understanding the concept.
8. Example: When Bitcoin or Litecoin is created, a new blockchain is
created for it, where all datas 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 datas.
9. 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 (http://bit.ly/2qwJ1MY), which
provide end-to-end Crypto Token Development Services
(http://bit.ly/2M9t7jj) in the global market. Their services are
Spectacular which made them to get a special place as
Reputed Ethereum Token Development Company in the
Blockchain Development (http://bit.ly/2PgBkEl)Industry.
10. If you wish to create a Crypto coin or token for any purpose?
Approach, Best Ethereum Token Development Services here!
