Over 20,000 listed cryptocurrencies are on coinmarketcap. Scroll a few pages, we find ourselves scratching our heads over whether a cryptocurrency is a coin or token?

Not any more!

First, let’s understand the difference between Coins and Tokens.A Coin is an asset that is native to its blockchain. A blockchain keeps track of transactions and transfers of value in terms of this asset.

All coins exist as data on the blockchain. The transfer of coins will not result in the movement of physical coins.

• A Store of Value - used to store value over a period of time

• A Medium of Exchange - transfer value with ease

• A Unit of Account - a reliable unit to price goods and services

However, they are not restricted to these functions only. Additional purpose can be given to these currencies based on the blockchain use-cases. For instance, Ether is used as fuel to execute transactions on Ethereum Blockchain.

• Bitcoin [BTC] on Bitcoin Blockchain

• Ether [ETH] on Ethereum Blockchain

• Theta [THETA] and Theta Fuel [TFUEL] on Theta Blockchain (Yes, one blockchain can have two native currencies.)

Tokens are derived from coins and they do not have their own blockchain.

Tokens rely on smart contracts on the blockchain to facilitate trade between users. Coins essentially represent a digital version of money, where tokens stand for assets or deeds.

As multiple tokens can exist on a native blockchain, a token can do transactions with other tokens without the need for bridges. This adds to interoperability between assets within the same chain and allows the creation of new use cases and opportunities.

• Chainlink [LINK] token on Ethereum Blockchain.

• Tether [USDT] token on Ethereum Blockchain.

• Bit Torrent [BTT] on Tron Blockchain.

• ERC 20 - Fungible Token Standard

• ERC 721 - Non-Fungible Token Standard

• ERC 1155 - Multi Token Standard

• Rely on existing blockchain for network and security.

• Can tap into the existing community to build applications.

• Difficult to build a reliable and robust network as it requires a lot of miners to wade off network-level attacks.

• Faster time to launch and affordable.

Tron launched as a token based on Ethereum Blockchain in 2017. After a year, in 2018 Tron migrated to its own Blockchain.

Thus Tron is one rare instance where a currency migrated from being a Token to Coin.

Head over to coinmarketcap.

Click on Filters > Click on +1 more Filter > A popup modal appears.

Under the All Cryptocurrencies section select Coins or Tokens > Click on Show Results.

This list will give you only coins or tokens based on your selection. This will help you to identify and distinguish between various coins and tokens.

Try it out!

Though the terms tokens and coins are used interchangeably sometimes., it is beneficial to know the difference between these terms.

Coins have often been used as money with a native blockchain. Whereas tokens are used to represent assets, they derive value from coins of the native blockchains.

This post is public so feel free to share it.

Over 20,000 listed cryptocurrencies are on coinmarketcap. Scroll a few pages, we find ourselves scratching our heads over whether a cryptocurrency is a coin or token?

Not any more!

First, let’s understand the difference between Coins and Tokens.A Coin is an asset that is native to its blockchain. A blockchain keeps track of transactions and transfers of value in terms of this asset.

All coins exist as data on the blockchain. The transfer of coins will not result in the movement of physical coins.

• A Store of Value - used to store value over a period of time

• A Medium of Exchange - transfer value with ease

• A Unit of Account - a reliable unit to price goods and services

However, they are not restricted to these functions only. Additional purpose can be given to these currencies based on the blockchain use-cases. For instance, Ether is used as fuel to execute transactions on Ethereum Blockchain.

• Bitcoin [BTC] on Bitcoin Blockchain

• Ether [ETH] on Ethereum Blockchain

• Theta [THETA] and Theta Fuel [TFUEL] on Theta Blockchain (Yes, one blockchain can have two native currencies.)

Tokens are derived from coins and they do not have their own blockchain.

Tokens rely on smart contracts on the blockchain to facilitate trade between users. Coins essentially represent a digital version of money, where tokens stand for assets or deeds.

As multiple tokens can exist on a native blockchain, a token can do transactions with other tokens without the need for bridges. This adds to interoperability between assets within the same chain and allows the creation of new use cases and opportunities.

• Chainlink [LINK] token on Ethereum Blockchain.

• Tether [USDT] token on Ethereum Blockchain.

• Bit Torrent [BTT] on Tron Blockchain.

• ERC 20 - Fungible Token Standard

• ERC 721 - Non-Fungible Token Standard

• ERC 1155 - Multi Token Standard

• Rely on existing blockchain for network and security.

• Can tap into the existing community to build applications.

• Difficult to build a reliable and robust network as it requires a lot of miners to wade off network-level attacks.

• Faster time to launch and affordable.

Tron launched as a token based on Ethereum Blockchain in 2017. After a year, in 2018 Tron migrated to its own Blockchain.

Thus Tron is one rare instance where a currency migrated from being a Token to Coin.

Head over to coinmarketcap.

Click on Filters > Click on +1 more Filter > A popup modal appears.

Under the All Cryptocurrencies section select Coins or Tokens > Click on Show Results.

This list will give you only coins or tokens based on your selection. This will help you to identify and distinguish between various coins and tokens.

Try it out!

Though the terms tokens and coins are used interchangeably sometimes., it is beneficial to know the difference between these terms.

Coins have often been used as money with a native blockchain. Whereas tokens are used to represent assets, they derive value from coins of the native blockchains.

This post is public so feel free to share it.