The Difference Between Tokens And Coins You Should Know

Vicigers friends may now be interested in getting into the crypto world, especially after the big rally in Bitcoin and altcoins in early 2021. Unfortunately, there are still many beginners who don't know the difference token and coins.

When you enter the crypto market, you will be confused with various types. You get even more confused when you see that it's not just cryptocurrencies in the crypto market. However, there are also other digital assets called tokens. So what's the difference between tokens and coins? 

Like the twins who are often misnamed, coins and tokens also get a similar status. Also, if you look at the major crypto asset markets, for example, coinmarketcap, you will surely find crypto coins mixed in with tokens. 

The Difference between Tokens and Coins

Although similar, the coins and symbols are different. Of course, the difference between a token and a coin isn't just in the name. But he lies in his work, where to come, as well as benefits. These are coins and crypto. 

Coin

Coins in the crypto world refer to digital assets that are built on their own blockchain network. In fact, these digital assets are provided by the creators of the respective blockchain systems. Because of this, the coin is often referred to as a genuine crypto asset aka “citizen” on the blockchain network.

For example, you are probably familiar with Bitcoin (BTC), the world champion in digital assets. Yes, BTC is a coin because it is built on its own network. Then there is Ether (ETH) which is the local currency of the Ethereum network. 

Also read: How NFT Art Works in the Blockchain World

Token

Meanwhile, tokens are digital assets that are built on top of another party's blockchain network. If the coins are "native" to the blockchain system, then tokens are "residents" there.

The marks are made from different platforms that are on top of the same block. Often, but not always, these tokens are built on top of the Ethereum blockchain system.

When creating this token, the creator must have a creative code for use in the main blockchain system. On Ethereum, for example, developers often refer to the ERC-20 standard so that their tokens can be transferred to other decentralized applications on the Ethereum blockchain network.

Apart from that, there is also the ERC-271 standard which developers often follow when creating non-fungible tokens (NFT). Currently, there are thousands of tokens circulating in the market.

Starting from Tether (USDT), USD Coin (USDC), DAI, UMA, and Basic Attention Token (BAT) are some of the digital tokens used by investors. Sometimes, symbols such as “sound” are also used in some sounds.

Often, this voting is conducted among users to determine new protocol updates or policies related to the platform policies of the removed application. 

Also read: How to Withdraw Crypto Currency to Rupiah, Very Easy!

Basically, coins are created via the mainnet blockchain. This token comes from a platform built on top of the blockchain network. Coins can be used for payment processing. Tokens are better suited for more diverse purposes.

VCGamers has also released a crypto token called VCG Tokens which stands on top of the BSC and Etherium networks. This token is used as a means of payment in Raffi Ahmad's Ransvers metaverse world.

For updating VCG Tokens latest, please visit this page regularly.