9 months ago

Explaining the different between coins and tokens

Token is a cryptocurrency that requires another platform to exist and function. Tokens can represent anything that has been programmed into a Smart Contract on Blockchain, they are basically any assets that are fungible and tradable.

Creating tokens is much easier than creating a new currency because it uses an available platform that has already been created, which means you don't have to modify the codes of a particular protocol or create a zero block.

In short, coins are standalone cryptocurrencies that require no other platform to run on, while Tokens are created on platforms that typically have their own currency.

Understand where the definition of Cryptocurrency comes from. Cryptocurrencies are digital or virtual currencies that are encrypted using encryption. Cryptography refers to the use of encryption techniques to secure and verify the transfer of transactions.

Bitcoin represents the first decentralized cryptocurrency, which is fed by its users without a central authority or intermediaries to control and all transactions are chronologically recorded in Blockchain.

All you have to do is follow a standard block model - like Ethereum, which is chosen because of its unique and amazing block technology - that lets you create your own tokens. This functionality of creating your own tokens is possible through the use of Smart Contract, which are computer codes registered in a Blockchain, so that they cannot be deleted or edited.

There are many tokens developed on top of the Ethereum platform like EOS, VeChain, OmiseGO, Binance Coin, Augur, Status and many more. Just go to the Coinmarketcap website and click on the “Tokens” tab. There are also a number of other platforms available for tokens to develop, such as Counterparty, Bitshares, Waves, Qtum, Nxt, Omni and NEO.

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