Hi there, Lucky Ali here, and most welcome to the new post. Some crypto users still believe that tokens and coins are the same, but the truth is different. To understand the blockchain system, we have to learn the mechanism of tokens and coins and the difference, so let's break down the difference.
Cryptocurrencies, which we call coins, are the major players in the blockchain. For example, the Solana blockchain has the Solana coin, the Ethereum blockchain has the Ethereum coin, and there is another example, Hive, which has the Hive blockchain; thus, Hive is a native coin of the Hive blockchain. These coins are used to pay network fees and power the whole economy. You can see that Hive Blockchain's witnesses, rewarded from Hive and Hive Power, decide the governance because Hive is the major contributor. Now I hope you understand the concept of coin or cryptocurrency.
A token has less value than a coin because it does not directly power the blockchain, but it is a part of the blockchain. Ethereum has erc-20 network using tha, where many tokens can be built, and they are called tokens which built on the Ethereum network. I want to give you an example of a hive. Hive has hive-engine, and using that, you can also create your own token. We have lots of tokens on the Hive blockchain, such as sps, leo, dec, colony, lstr, surge, and there are many more, so these are the tokens which built on the Hive blockchain network.
If you are an investor in crypto, then you should know the difference. Coin is used to pay network fees or as a governance token, but the token can represent something else and provide many use cases, so both the token and coin are important aspects of the crypto economy. Next time, when you invest in any new project then ask one question using Helpdesk, and that is, does this ecosystem run on its own blockchain or is it run on a different blockchain? When they say own blockchain, which means the owner has a big vision, that is why they came up with their own blockchain.
This is a basic question, but still, some people do not know about that. That is why I decided to share it in detail. I hope everything is clear now because, as a crypto investor, you should know about such topics. If you still have any questions, please share them in the comments, and also share this article on social media. Now I am ending this post, and I will meet you in my next blog. Take care.
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| Hi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring. Thank you, hive family ♥ |
