Difference between a Crypto Coin and a Token
- NFT All Things Web3
Can you explain the difference between coin and token? If there's any..
A coin is the native cryptocurrency of a blockchain (bitcoin to Bitcoin blockchain, Ether to Ethereum blockchain, Matic to Polygon Blockchain etc) it comes into existence mostly when the blockchain's first block is mined and is used in paying gas fees on that chains tokens however are created by any user on any blockchain (if the chains supports any form of smart contracts. Bitcoin, monero blockchains does not support tokens but most other chains like evm chains do). tokens on evm chains for example, needs the owner to approve a third-party of an amount before that third party can use that amount for anything. but for coins, it doesn't need to be approved. coin transfer amounts are included in the transaction information sent to nodes and has a key of "value", token transfers are included in the "data" field of the transaction which also contains other information too.
it depends on community!
- Can you provide more details? What do you mean
Hi! So, crypto coin is an asset that exists independently and native to a certain chain (like BTC is a coin of Bitcoin chain). Token, on the other hand, is a product of a dApp or smth else using a certain chain like Ethereum or Binance Chain (erc20 and bep20 tokens).