Coins & Tokens
Delve into the fascinating world of cryptocurrencies as we uncover the fundamental difference between coins and tokens, a distinction that lies at the very heart of blockchain technology. In this insightful article, we demystify these terms, shedding light on their unique roles in the crypto ecosystem.
Ralph Fontones
10/10/20231 min read
The primary difference between a coin and a token is found at the blockchain level. A coin is the default cryptocurrency of a blockchain, such as Ether (ETH) on the Ethereum blockchain. On the other hand, a token is a cryptocurrency that uses or "borrows" another blockchain's network. Tokens have their own price, name, and utility that differs from the native cryptocurrency.
For example, Ether (ETH) is considered a coin because it is the default currency on the Ethereum blockchain. In contrast, Basic Attention Token (BAT) is considered a token because it uses the Ethereum blockchain but has its own price, name, and utility.
Coins and tokens are similar in many regards. Both are types of cryptocurrencies that rise and fall in price and use blockchains to validate transactions. However, tokens have additional flexibility due to their ability to utilize another blockchain's network and customize their functionality using smart contracts.