While the main characteristic of a crypto coin is that it must have its own blockchain network, a crypto token is the opposite: it runs on another blockchain. To take things further, Dogecoin (DOGE), another popular coin, was designed based on Litecoin’s code.
Crypto coins code#
For example, take Litecoin (LTC), which was built using Bitcoin’s source code but modified to work much faster. While the technology behind coins is often built from scratch, they can take inspiration from their predecessors. Users can send and receive assets and pay for the computing power required to carry out specific tasks using the blockchain’s native token, ETH. The Ethereum blockchain can be used to execute smart contracts and build decentralized applications. Confusingly, crypto coins are also sometimes called “native tokens” because they are native to their individual blockchain.įor example, Bitcoin (BTC) is the most popular coin and is powered entirely by its own blockchain network.
Tokens can be more than cryptocurrencies - they can be digital representations of just about anything.Ī coin is a cryptocurrency that has its own independent blockchain network. Tokens do not use their own independent blockchain. Read on to find the proper definitions of coin and token and their differences.Ī coin is a cryptocurrency that has its own independent blockchain network. If you’re looking to improve your understanding of cryptocurrency, this article is for you. These words are often used interchangeably, but did you know they actually have two entirely different meanings? You’ve probably seen the words coin and token being thrown around in the crypto space.
Today, we’re covering a topic that even some experienced crypto users may not be familiar with: the difference between coins and tokens. So, you’ve finally managed to wrap your head around the basics of cryptocurrency and blockchain technology, and you’re ready to take your crypto knowledge to the next level.
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