This question arises with many users and it is not always possible to understand what is at stake. I was asked about it by the user of crypto social network Minds with the login Dacrownprince. The question was: “What is the difference between token and coins?”

The key difference, in my opinion, is the hierarchy. The coin is more important in the crypto currency business than the token. It is the token that is the equivalent of the coin, not the reverse.

As for the concept of an equivalent, this is even simpler. We can look at Wikipedia, for example, and read that: “Equivalent is being similar or identical in value, meaning or effect; virtually equal”.

Thus, a token is the equivalent of a coin, which in some situations can replace the concept of “coin”. In crypto business, this term is often called the future coin. That is, before the existence of a full-fledged version of the coin, in periods of pre-sale, ICO, etc., the notion of “token” is used instead.

A token can also be a coin substitute at the entrance of a public transport or a set of digits upon entering any virtual service on the Internet (G-identificator etc.).

As for our business, that is, crypto social networks, I can say that at the moment about two dozen coins and about two hundred tokens already exist in this sphere.

The problem is that very many users, even quite experienced, often confuse these two concepts and apply them without an exact link to the situation. They can be understood, because a coin is inherently a token of value for something. But now, I think, you will be much better at understanding these two concepts.

Picture by pixabay.com

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