What is the difference between Coins & Tokens?

Both terms are often used as synonyms, but have completely different concepts. In a nutshell, Coins that are sometime also (called as altcoins) are created with several encryption techniques, and hold value over time. It operates on its own Blockchain, for example: Bitcoin operates on Bitcoin Blockchain, NEO operates on NEO Blockchain, Ether operates on Ethereum Blockchain.

Coins are mobile, persistent, commutable, and have limited supply. Besides, they don’t have any functionality beyond acting as money.

Tokens are referred as an asset or utility, that require existing blockchain to operate & function. They require another platform like Omni, Lisk, Waves, Stratis and Ethereum to operate. Tokens are designed in a way that activate features & functionality of an application. For example: Musiccoin is a token designed to give users can access of different features of music platform.

The main difference lies in their structure as coins are considered as separate currency and have their own separate Blockchain. And Tokens reside on the top of Blockchain that functions with decentralized applications.

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