{"id":5288,"date":"2023-01-25T06:52:23","date_gmt":"2023-01-25T06:52:23","guid":{"rendered":"https:\/\/kriptomat.cash\/difference-between-coin-and-token\/"},"modified":"2024-06-19T11:21:53","modified_gmt":"2024-06-19T11:21:53","slug":"difference-between-coin-and-token","status":"publish","type":"post","link":"https:\/\/kriptomat.hr\/en\/difference-between-coin-and-token\/","title":{"rendered":"Difference between Coin and Token"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5288\" class=\"elementor elementor-5288 elementor-2212\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8ca4671 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8ca4671\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8bbaea2\" data-id=\"8bbaea2\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8e79279 elementor-widget elementor-widget-heading\" data-id=\"8e79279\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">What is the difference between Coin and Token?<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8692d15 elementor-widget elementor-widget-text-editor\" data-id=\"8692d15\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Welcome to our today&#8217;s blog. After asking the question in the title, let&#8217;s see how we would call a coin in Croatian, and how a token. <\/span><span style=\"font-weight: 400;\">For a crypto token, we would say token, while for coin they would use the word coin or coin. <\/span><span style=\"font-weight: 400;\">Although at first we all think that there is no difference, we are still wrong. In this blog, we explain how to distinguish a coin from a chip and learn about their different uses.<\/span><\/p><p style=\"text-align: justify;\"><span style=\"color: #000080;\"><br \/><b>Terminology: <\/b><\/span><span style=\"font-weight: 400;\">Although many alternately use the terms &#8216;<\/span><i><span style=\"font-weight: 400;\">crypto coin&#8217;, &#8216;crypto token&#8217; and &#8216;cryptocurrency<\/span><\/i><span style=\"font-weight: 400;\">&#8216;, i.e. in English &#8216; <\/span><i><span style=\"font-weight: 400;\">crypto coin&#8217;, &#8216;crypto token&#8217;, and &#8216;cryptocurrency&#8217;<\/span><br \/><\/i><span style=\"font-weight: 400;\"> &#8211; it should be emphasized that it is not the same, but there are technical differences in the way they are made. <\/span><\/p><p style=\"text-align: justify;\"><span style=\"color: #000080;\"><b>Authenticity: <\/b><\/span><span style=\"font-weight: 400;\">While <\/span><i><span style=\"font-weight: 400;\">crypto coins <\/span><\/i>are <span style=\"font-weight: 400;\">a form of digital currency that is most often native to some blockchain network (e.g., Ether on the Ethereum Blockchain), <\/span><i><span style=\"font-weight: 400;\">crypto tokens <\/span><\/i>are digital assets built on an existing blockchain using smart contracts.<\/p><p style=\"text-align: justify;\"><b><span style=\"color: #000080;\">Function: <\/span><\/b><i><span style=\"font-weight: 400;\">Coins <\/span><\/i><span style=\"font-weight: 400;\">for the main purpose have <\/span><i><span style=\"font-weight: 400;\">a store of value, <\/span><\/i><span style=\"font-weight: 400;\">but also act as <\/span><i><span style=\"font-weight: 400;\">a medium of exchange<\/span><\/i><span style=\"font-weight: 400;\">. Here we see a similarity with traditional fiat currencies which is why crypto coins are also called cryptocurrencies. <\/span><i><span style=\"font-weight: 400;\">Tokens<\/span><\/i><span style=\"font-weight: 400;\">, on the other hand, have a number of functions such as representing a physical object, or granting access to the services\/features of a platform. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-461d49a elementor-widget elementor-widget-heading\" data-id=\"461d49a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">More About Coins And Crypto Coins<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-880951c elementor-widget elementor-widget-text-editor\" data-id=\"880951c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A basic example of a coin is Bitcoin, BTC. It is powered by its own eponymous blockchain, and is used to pay transaction fees online.  <\/span><span style=\"font-weight: 400;\">Many blockchain networks have been created from scratch as alternative or improved versions of Bitcoin. Since it is impossible to create a coin without building a new blockchain, we can conclude that this is a rather complex process. In the<\/span><span style=\"font-weight: 400;\">Short &#8211; crypto coin is a form of digital currency that is usually native to its blockchain Miners being on Pow, and earning on the PoS mechanism. Some examples of coins are: Bitcoin (BTC) &#8211; PoW, Ether 2.0 (ETHS) &#8211; PoS and Ethereum (ETHW) &#8211; PoW.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e4a382f elementor-widget elementor-widget-image\" data-id=\"e4a382f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"432\" src=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/01\/Crypto-Staking-1-1-1140x641-1-768x432.jpeg\" class=\"attachment-medium_large size-medium_large wp-image-4511\" alt=\"\" srcset=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/01\/Crypto-Staking-1-1-1140x641-1-768x432.jpeg 768w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/01\/Crypto-Staking-1-1-1140x641-1-300x169.jpeg 300w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/01\/Crypto-Staking-1-1-1140x641-1-1024x576.jpeg 1024w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/01\/Crypto-Staking-1-1-1140x641-1.jpeg 1140w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1394fdf elementor-widget elementor-widget-heading\" data-id=\"1394fdf\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Features of coins<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9246c69 elementor-widget elementor-widget-text-editor\" data-id=\"9246c69\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><b><i>Own blockchain: <\/i><\/b><\/span><span style=\"font-weight: 400;\">They do everything on their own blockchain. For example, after Bitcoin split into two blockchains, Bitcoin and Bitcoin Cash, BTC nevertheless remained the original coin of the chain, while a completely separate new coin for the separate chain \u2014 BCH \u2014 emerged.<\/span><\/p><p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It is the independent blockchain that allows the creation of new functions, and offers unique technical solutions. The efficiency and security of the underlying blockchain technology are one of the factors that affect the value of the coin itself.<\/span><\/p><p style=\"text-align: justify;\"><b><i><span style=\"color: #000080;\">They function as traditional money<\/span>: <\/i><\/b><span style=\"font-weight: 400;\">They act as fiat currencies due to their characteristics such as security, quantity limitation, durability, portability and storage of value. Some crypto coins have already been accepted as a medium of exchange for network companies such as: <\/span><i><br \/><span style=\"font-weight: 400;\">Microsoft, PayPal, Starbucks, Virgin Airlines and others<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p><p style=\"text-align: justify;\"><strong><span style=\"color: #000080;\">In <\/span><\/strong><span style=\"font-weight: 400;\"><strong>most blockchain networks<\/strong>, new coins are issued by a process called mining. <\/span> <span style=\"font-weight: 400;\">All network participants who confirm transactions &#8211; miners or &#8220;miners&#8221;, are rewarded with freshly minted coins. At the same time, every time users make transactions online, such as <\/span><i><br \/><span style=\"font-weight: 400;\">sending or receiving funds <\/span><br \/><\/i><span style=\"font-weight: 400;\">&#8211; they pay an online fee that is further spent on rewards.<\/span><\/p><p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Now, before we move on to a crypto token, &#8220;take a look&#8221; at the extracted cryptocurrencies that qualify as coins:<\/span><\/p><ul><li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bitcoin<\/span><\/li><li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ethereum<\/span><\/li><li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">BNB<\/span><\/li><li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cardano<\/span><\/li><li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">XRP<\/span><\/li><li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Solana<\/span><\/li><li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Polkadot<\/span><\/li><li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dogecoin<\/span><\/li><li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">TRON<\/span><\/li><li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avalanche<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-436b2e7 elementor-widget elementor-widget-heading\" data-id=\"436b2e7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">What is Crypto Token and how is it created?<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f54b603 elementor-widget elementor-widget-image\" data-id=\"f54b603\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"768\" height=\"422\" src=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/01\/Token-768x422.jpeg\" class=\"attachment-medium_large size-medium_large wp-image-4514\" alt=\"\" srcset=\"https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/01\/Token-768x422.jpeg 768w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/01\/Token-300x165.jpeg 300w, https:\/\/kriptomat.hr\/wp-content\/uploads\/2023\/01\/Token.jpeg 935w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-13d67bb elementor-widget elementor-widget-text-editor\" data-id=\"13d67bb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A token is a digital unit of value that represents an asset or utility. <\/span><span style=\"font-weight: 400;\">Tokens, contrary to coins <\/span><i><br \/>\n  <span style=\"font-weight: 400;\">, do not have their own blockchain<\/span><br \/>\n<\/i><span style=\"font-weight: 400;\">, and are issued independently of existing networks. Also, tokens can&#8217;t be done.&#8221;<\/span><i><span style=\"font-weight: 400;\">miners<\/span><\/i><span style=\"font-weight: 400;\">&#8221; in the process of validating crypto transactions. Instead, tokens were forged. The amount of tokens minted varies from token to token, with the number depending on the different conditions set by the issuance project.  <\/span><span style=\"font-weight: 400;\">Tokens are used for a variety of purposes, such as raising funds or accessing certain services. Some tokens may even represent coins on another network. Such tokens are called &#8220;wrapped tokens&#8221; , and they track the price of the underlying asset. Another very popular type of token among investors is stablecoin &#8211; a token that tracks the price of the US dollar. In one of our past blogs, we wrote in  <\/span><a href=\"https:\/\/kriptomat.hr\/tether-usdt\"><br \/>\n  <span style=\"font-weight: 400;\">Tether (USDT)<\/span><br \/>\n<\/a><span style=\"font-weight: 400;\"> is the first and most famous stablecoin. <\/span><span style=\"font-weight: 400;\">Here&#8217;s a list of the most famous tokens in the crypto market:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tether<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">10000000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bitcoin USD<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dai<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Wrapped Bitcoin<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">LEO Token<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shiba Inu<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lido Staked Ether<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chainlink<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Tokens are always created on the existing blockchain. In order to create a token, it is not necessary to know how to code &#8211; there are already ready-made solutions for generating tokens. This could be compared to creating a website on one of the platforms that is &#8220;friendly&#8221; to use.  <\/span><span style=\"font-weight: 400;\">However, in order to &#8220;build&#8221; a token with more advanced features, it is still necessary to be a little more technically shod considering that the process itself requires &#8211; the implementation of a smart contract, that is, digital contracts that are executed themselves according to the terms and conditions that are written in the code on the blockchain.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e0876a0 elementor-widget elementor-widget-heading\" data-id=\"e0876a0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is a token standard?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0f1e540 elementor-widget elementor-widget-text-editor\" data-id=\"0f1e540\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The token standard represents a kind of framework in the process of creating tokens. Specifically, it is the standard that defines a smart contract, and thus the features of token features. With different blockchains, we also come across different token standards. The most commonly used blockchain to run tokens is Ethereum, and it comes &#8220;bundled&#8221; with its standards that have been introduced as  <\/span><i><br \/>\n  <span style=\"font-weight: 400;\">Ethereum Requests for Comments (ERC)<\/span><br \/>\n<\/i><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">Let&#8217;s look at 3 different types of token standards:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><b>ERC-20<\/b><span style=\"font-weight: 400;\"> <\/span><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Characteristic of fungible tokens in which all tokens are of exactly the same type and value, and are thus interchangeable;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Application: elections and voting, payments, and the like;<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Example: Chainlink is a software platform also known as &#8220;oracle,&#8221; which in crypto jargon refers to technology that brings real-time data from online sources to blockchain. Its original currency is the Link &#8211; ERC20 token on the Ethereum network, and serves as the currency to pay for its operations. Each LINK token is always the same as any other ISSUED LINK token.  <\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><b>ERC-721<\/b><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Characteristic of non-fungible tokens (NfTs), unique and cannot be exchanged for other tokens of the same type.<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Application: digital collectibles, digital art, creation of access crypto keys, crypto wallets, but also &#8220;items&#8221; for games (eng. In-game items) such as earth, avatars, tools, armor, etc.  <\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Unique property<\/span><b>: <\/b><span style=\"font-weight: 400;\">allow nft to be associated with an image stored on an external server, which allows the token to have a visual representation.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><b>ERC-1155<\/b><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This token standard allows the creation of a number of different types of tokens: interchangeable, irreplaceable, semi-fungible tokens, but also other configurations;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Application: Let&#8217;s say that the &#8220;game developer&#8221; wants to design a game in which there are two types of tokens &#8211; one that is intended for in-game payments (exchangeable token) and the other that is intended for in-game items (NfTs) &#8211; it would be more efficient for him to use the ERC-1155 standard standard, allowing both tokens to be created with just one smart contract. If this standard did not exist, the alternative would be to create two separate treaties with the ERC-20 and ERC-721 standards.<\/span><\/li>\n<\/ul>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e4056da elementor-widget elementor-widget-heading\" data-id=\"e4056da\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is the purpose,  \nWhat are the advantages of the tokens?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eeff150 elementor-widget elementor-widget-text-editor\" data-id=\"eeff150\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Among crypto startups, it is popular to use tokens to raise funds for development. The way startups do this is to go out on the stock market with an initial coin offering (IcO), where they sell them to investors. The tokens sold serve them on new projects as their currency, which gives users access to various features. It is here that the main benefit of the token is &#8220;hidden&#8221;, which is to avoid the need to create a completely new blockchain, but individual crypto startups can devote themselves to the development of the platform and functionalists, instead of &#8220;spending&#8221; resources on the development of the public ledger of the new Blockchain (eng. public ledger). In addition to financing crypto projects, another advantage that tokens bring to the crypto world is asset tokenization &#8230;. Asset tokenization) because it is precisely tokens that can represent any coins or digital assets in chains of blocks.<\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-41618ac elementor-widget elementor-widget-heading\" data-id=\"41618ac\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How does it work and what types of tokens are there?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8285689 elementor-widget elementor-widget-text-editor\" data-id=\"8285689\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Tokens allow users to interactively use a specific platform and services of a project.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><span style=\"text-decoration: underline;\"><br \/>\n  <strong>Here&#8217;s an example<\/strong><br \/>\n<\/span><strong>: <\/strong> <\/span><span style=\"font-weight: 400;\">Brave is a web browser where the BAT token allows users to pay for various marketing services. For example, users can pay for ads with BAT tokens. This ensures that ad publishers and advertisers make money without intermediaries.  <\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><b>There are three types of tokens<\/b><\/span><span style=\"font-weight: 400;\">, and each of them may fall into more than one of the categories listed below. All types of tokens have in common that they can be issued to finance the development of a project, and we classify them into:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Security tokens<\/b><span style=\"font-weight: 400;\"> (eng. Security Token) which are essentially a digital and tokenized form of a traditional securities .<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Capital tokens<\/b><span style=\"font-weight: 400;\"> (eng. Equity Token) that fall under the security but function as a traditional asset of shares, and provide the holder with ownership and voting rights.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Utility tokens  <\/b><span style=\"font-weight: 400;\">(Eng. Utility tokens) that allow owners to access an application or specific services of a blockchain-based project. These tokens are usually issued through an initial coin offering (IcO)<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Payment tokens<\/b><span style=\"font-weight: 400;\"> (eng. Payment tokens used to pay for goods and services.<\/span><\/li>\n<\/ul>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b1c957b elementor-widget elementor-widget-heading\" data-id=\"b1c957b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Let's look at the learned...<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2152919 elementor-widget elementor-widget-text-editor\" data-id=\"2152919\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"color: #000080;\"><b>COINS VS TOKEN IN SHORT LINES<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Coins and tokens are often misinterpreted as the same thing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Coins are native to their blockchains.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tokens are created on existing block chains.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The functionalities of coins and tokens often overlap.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The main difference is based on purpose and function. Here, the coin is considered a financial asset with the only payment function. As such, it shows most of the following characteristics:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><br \/>\n  <span style=\"font-weight: 400;\">Interchangeability <\/span><br \/>\n<\/i><span style=\"font-weight: 400;\">, which means that one unit is equal to another;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><br \/>\n  <span style=\"font-weight: 400;\">Divisibility <\/span><br \/>\n<\/i><span style=\"font-weight: 400;\">, which means that each unit can be divided into smaller units;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><br \/>\n  <span style=\"font-weight: 400;\">Acceptability<\/span><br \/>\n<\/i><span style=\"font-weight: 400;\"> , which means that cryptocurrency is widely accepted as a medium of exchange;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><br \/>\n  <span style=\"font-weight: 400;\">Limited supply<\/span><br \/>\n<\/i><span style=\"font-weight: 400;\">, which means that the total number of units is limited and constant;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><br \/>\n  <span style=\"font-weight: 400;\">Uniformity, <\/span><br \/>\n<\/i><span style=\"font-weight: 400;\">which means that all versions of a given name have the same value;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><br \/>\n  <span style=\"font-weight: 400;\">Portability <\/span><br \/>\n<\/i><span style=\"font-weight: 400;\">, which means that units can be transferred and exchanged;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><br \/>\n  <span style=\"font-weight: 400;\">Durability <\/span><br \/>\n<\/i><span style=\"font-weight: 400;\">, which means that units can be used repeatedly without losing value.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In contrast, tokens have extended functionality that goes beyond money.<\/span><\/p>\n<p>We hope that our blog today helped you master the differences between coins and tokens. In the following blog, we talk about downloading Wallet to a smart device.<\/p>\n<p>Until next blog, <\/p>\n<p><span style=\"color: #000080;\"><em><strong>Your Kriptomat.hr Team<\/strong><\/em><\/span><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What is the difference between Coin and Token? Welcome to our today&#8217;s blog. After asking the question in the title, let&#8217;s see how we would call a coin in Croatian, and how a token. For a crypto token, we would say token, while for coin they would use the word coin or coin. Although at [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":4510,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[42,43,1],"tags":[],"class_list":["post-5288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-essentials","category-cryptocurrencies","category-uncategorized-hr"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Difference between Coin and Token - Kriptomat<\/title>\n<meta name=\"description\" content=\"The terms &#039;crypto coin&#039;, &#039;token&#039;, &#039;currency&#039;, or in English &#039;crypto coin&#039;, &#039;token&#039;, &#039;currency&#039; - do not mean the same thing. Moreover, there are functional and technical differences between crypto coins and tokens.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kriptomat.hr\/en\/difference-between-coin-and-token\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Difference between Coin and Token - Kriptomat\" \/>\n<meta property=\"og:description\" content=\"The terms &#039;crypto coin&#039;, &#039;token&#039;, &#039;currency&#039;, or in English &#039;crypto coin&#039;, &#039;token&#039;, &#039;currency&#039; - do not mean the same thing. 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