Difference Between Bitcoin and Token

  Bitcoin, the leading digital currency by market capitalization, has grown in value by more than 10 times at certain points over the past year, but it has also seen significant plunges in value. Still, a number of cryptocurrencies have managed to come out on top. (See also:  Bitcoin Price Takes Backstage as Altcoins Rally .) To say that 2017/2018 has been a big year for digital currencies would not begin to do the industry justice. In the span of just months, digital currencies skyrocketed in value, interest, and number, only to see their values plummet once again, before leveling off. There are new digital currencies being launched to investors every week, and a hoard of blockchain-related startups have followed in their footsteps, often bolstered by major fundraising efforts through  ICO s. In the world of virtual currencies, fortunes tend to move up and down quickly. The space is dominated by volatility above many other factors. These are the large...

Many of us have probably been using the terms ‘token’ and ‘coin’ interchangeably without realizing that there are minor but meaningful differences between them. It’s something we’re all fairly guilty of. But to get some clarity regarding the differences between Bitcoin and a token, we first need to understand the difference between a token and a conventional cryptocurrency as a whole.  While both of these terms are used to define a unit of blockchain value, they still refer to different categories of digital currencies. Let’s explore. Coins Digital coins are unique digital currencies that are based on their own standalone blockchains. In other words, a digital coin is an asset that is native to its own blockchain. Bitcoin ( BTC ) and Ether ( ETH ) are examples of such coins because they operate on the Bitcoin and Ethereum blockchains, respectively. These coins exist as data on the database (which is the blockchain), and any transactions are checked and verified by computers across ...