What are the key characteristics that set coins apart from tokens in the realm of cryptocurrency?

1 answers

• Nov 28, 2021 · 3 years ago
  Coins and tokens are two different types of digital currency in the realm of cryptocurrency. Coins, such as Bitcoin and Litecoin, are standalone currencies with their own blockchain networks. They are typically used as a medium of exchange and a store of value. Tokens, on the other hand, are created on existing blockchain platforms, like Ethereum. They rely on the infrastructure and smart contracts of the underlying blockchain to function. Tokens can represent various assets, such as utility, security, or even real-world assets. Unlike coins, the value of tokens is derived from the underlying blockchain platform and the specific use case they serve. For example, utility tokens can be used to access certain services or products within a blockchain ecosystem.
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