What are tokens and coins?

Before defining these two, you should know that all available coins or tokens are each a virtual currency, which according to their design call coins or tokens. In simple terms, to date, about 15775 digital currencies have been produced, all of which are coins or tokens.

The difference between Coin and Token:

1. Coins:

Coin, also known as Alternate Coins or Altcoins, is a virtual currency that operates independently and has its own platform. In this basic platform, the mentioned Kevin transactions are done. Most existing altcoins are a version of bitcoin built by the original bitcoin protocol, and only a few modifications have been added to their original code. So if the original code written for a coin changes, a new coin is actually created. Examples of popular altcoins in the market are Bitcoin Cash, Litecoin, Dogecoin, Namecoin and many more.
There are other coins on the market that do not branch out from the original version of Bitcoin, such as Ripple, Ethereum, … These coins have a separate blockchain for themselves, and their blockchain can be used for other purposes in addition to storing transactions and issues related to the concept of money. Thus, the characteristic of Coins is that they use their own blockchain for their activities.

2. Token:

A token is also a type of digital currency, except that it does not have a separate blockchain and uses the blockchain of other currencies. Tokens are typically designed and produced for a project. Projects that use tokens to raise their own funds are called ICO.
Tokens are much simpler to design and implement than quins, as the source code does not need to be modified from the original protocol and no new blockchain is created. Almost all the tokens are created on the Ethereum blockchain and their number is increasing day by day. The first coin written on the Ethereum blockchain was ether.

Based on the above explanations, it can be said that tokens are not technically considered currency. Because they need another currency to exist in blockchain, and they can not exist independently. The boundary between coins and tokens is still a bit blurred even for users and activists in this field. In any case, it is quite clear that the difference between the two is in their structure, coins can be used as currency while tokens are like programs. They are decentralized and land on the blockchain.