What is the difference between a Crypto Currency Coin and a Crypto Token

-

What is the difference between a Crypto Currency Coin and a Crypto Token

The main difference between a cryptocurrency coin and a token is how they are built and used:

1. Cryptocurrency Coin

  • Has its own blockchain: Coins operate on their own independent blockchain (e.g., Bitcoin runs on the Bitcoin blockchain, and Ethereum runs on the Ethereum blockchain).
  • Used for transactions: Coins are primarily used as a form of digital currency (e.g., Bitcoin (BTC) is used for payments and as a store of value).
  • Examples: Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB - now on BNB Chain), Solana (SOL).

2. Cryptocurrency Token

  • Built on an existing blockchain: Tokens are created on top of an existing blockchain, like Ethereum, Solana, or Binance Smart Chain, using smart contracts.
  • Used for various purposes: tokens can represent assets (like stablecoins or NFTs), be used in DeFi applications, or grant governance rights in DAOs.

3. Examples:

  • Utility Tokens: Chainlink (LINK), Uniswap (UNI)
  • Stablecoins: USDT (Tether), USDC
  • NFTs: Digital art, in-game items

Key Takeaways

Has own blockchain?

  • Coins: ✅ Yes 
  • Tokens: ❌ No (uses another blockchain)

Primary use?

  • Coins: Digital currency        
  • Tokens: Utility, governance, DeFi, NFTs

Examples                 

  • Coins: BTC, ETH, SOL   
  • Tokens: USDT, UNI, LINK, NFTs


Comments

Post a Comment

Popular posts from this blog

The Seven Different Types of Coding Blocks in Java

-
Java   Coding Blocks    In Java , the term "coding block" typically refers to a block of code within certain constructs that define the scope and execution context of variables and statements. There are several types of coding blocks in Java, each serving different purposes. Here’s an overview: 1. Method Block A  Java  method block is the section of code within a method. It defines the scope of local variables and contains the statements that make up the method. public class MyClass { public void myMethod () { // Method block starts here int localVariable = 10 ; System.out.println(localVariable); // Method block ends here } } 2. Class Block A  Java  class block is the section of code within a class definition. It contains the class’s fields (variables), methods, and nested classes. public class MyClass { // Class block starts here int instanceVariable; // Field public void myMet...
Read more

What is a web application? (Lesson 7 of our Java Bootcamp)

-
  What is a  Java  web application? (During Lesson 7 of our   Java    Bootcamp, we will cover this topic in depth and create such an app )  A  Java  web application (web app) is: ·          an  application program   ·          that is stored on a remote server ·          and delivered over the internet through a browser interface.  Examples of web applications are for instance: ·          webmail, ·          online calculators, ·          and e-commerce platforms. How web applications work: Java  web applications are accessed over a network.  That means, users don't need to download a web application.  Instead, they can conveniently access the  Java...
Read more

Why attend a Java Bootcamp?

-
Image
  Why attend a Java Bootcamp? Compared to a degree, the Java Bootcamps is shorter, less costly, more practical and more focussed on just the one skill, Java Programming (although Java Programming includes multiple skills) and takes you from scratch to job-ready. It is a very effective way to put your head down, learn the Java Programming Language and move on in your career. Twelve weeks of dedicated learning and practicing thoroughly enhance   skills and broaden opportunities. What is a Java Bootcamp? A Java coding bootcamp is an intensive training program to master Java coding skills within 12 weeks. Skills learnt that are relevant immediately in the workplace as  Java  Coder. Project-based learning ensures that you become fluent in creating useful and effective  Java  code.   The biggest at advantage is the in-depth technical knowledge and practical skills. Who will benefit? The Java Bootcamps is an excellent opportunity fo...
Read more