Tokens vs. Coins
Coins are currencies in the true sense.
They have recognized value outside of a given blockchain project (i.e. they are universally recognized – by humans and other coin ecosystems – as a valid form of payment).
Tokens are digital assets that have existence and meaning only inside a project.
They are used as a way to facilitate payments within the project’s ecosystem.
Tokens can be further categorized into security tokens and utility tokens.
Security tokens give holders a share of a company’s ownership, for example, tokens issued by the Decentralized Autonomous Organization (DAO) project.
Utility tokens are based on a use case – e.g. filecoin is used for file storage, namecoin for decentralized DNS etc.
Need a blockchain consultant?
Set up a 1 on 1 appointment with Anuj Varma to assist with your blockchain journey
Anuj holds professional certifications in Google Cloud, AWS as well as certifications in Docker and App Performance Tools such as New Relic. He specializes in Cloud Security, Data Encryption and Container Technologies.
Anuj Varma – who has written 1216 posts on Anuj Varma, Hands-On Technology Architect, Clean Air Activist.
Leave a Reply