– Simply put, a token represents what a person owns, while a coin denotes what they’re capable to own . Additionally, everyone has used a token at least once in their life even if not in this form. For example, your car title is a token. When you sell the car, you transfer the value of the title to another person.
Read moreWhat is the difference between cryptocurrency and tokens?
The biggest difference between a cryptocurrency and a token is that cryptocurrencies are the native asset of a blockchain like BTC, RBTC, or ETH, whereas tokens are built on an existing blockchain, using smart contracts . Most commonly, these are EIP-20 tokens.
Read moreDoes every blockchain need a token?
No but in general, public permissionless blockchains prefer tokens for some real benefits : One is that tokens can be utilized to prevent network attacks. If you have to spend some tokens for each transaction, than it is very unlikely that you’d spend millions of tokens for attacking the honest nodes to fail them.
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