What is the difference between a coin and a token?

Both are a type of cryptocurrency. Both rise and fall in price. And both use blockchains to validate transactions. The primary difference between a coin and a token is found at the blockchain level. A coin is the default cryptocurrency of a blockchain. For instance, Ether (ETH) is the default currency on the Ethereum blockchain.

Can coins be used for tokenization?

Coins can also be used for tokenization and they may also serve as utility or governance tokens, or even have blockchain-specific use cases. Tokens don’t have their own blockchain and are currently not advanced enough to use the consensus mechanism of their parent blockchain for token generation.

What is an example of a token?

For example, Bitcoin (BTC) and Ethereum (ETH) are coins. A token is a digital unit designed with utility in mind, providing access and use of a larger cryptoeconomic system. It does not have store of value on its own, but are made so that software can be developed around it. For example, Tether (USDT) is a token that operates on the Omni platform.

Are all coins coins?

All coins are tokens, but not all tokens are coins. Coins have their own blockchains whereas tokens are built on an existing blockchain.