Coin vs Tokens

These terms are often used interchangeably, but they have distinct meanings:
1.Crypto Coins:
A crypto coin is a form of digital currency that is native to its own blockchain. It serves two primary purposes:
Storing Value: Similar to traditional currencies, coins store value and act as a medium of exchange.
Medium of Exchange: They can be used for transactions, exchanged for other currencies, and utilized for payments.
Examples:
Bitcoin (BTC): The pioneer cryptocurrency, designed for peer-to-peer transactions.
Ether (ETH): The native currency of the Ethereum blockchain.
Cardano (ADA): Another popular coin with a focus on scalability and security.
Creation:Coins are either mined using a Proof of Work (PoW) consensus mechanism or earned via a Proof of Stake (PoS) mechanism.

2.Crypto Tokens: A crypto token is built on top of an existing blockchain, often using smart contracts (usually on Ethereum). Tokens serve various functions:
Asset Representation: Tokens can represent physical objects, digital assets, or even ownership in a project.
Platform-Specific Features: They grant access to specific services or features within a decentralized project.
Utility, Security, and Governance: Tokens can be used for voting, accessing services, or participating in governance.
Examples:
Cronos (CRO): A token built on the Crypto.com Chain.
Very, Very Simple Finance (VVS): A token with a unique name.
Uniswap (UNI): A governance token for the Uniswap decentralized exchange.
Blockchain Relationship:Tokens are not native to their own blockchain; they “borrow” an existing blockchain’s network.

In summary:

• Coins are native to a blockchain, primarily for storing value and acting as a medium of exchange.
• Tokens are digital assets built on an existing blockchain, offering a wide range of functions.

Remember, while both coins and tokens use distributed ledger technology (blockchain), their purposes and origins differ significantly.