COIN VS TOKEN:

A coin and a token are both forms of digital assets in the cryptocurrency space, but there are some key differences between the two.

A coin is a form of cryptocurrency that operates on its own blockchain and has its own set of rules for creating new units and verifying transactions. Bitcoin is the most well-known example of a coin.

A token, on the other hand, is a type of digital asset that is built on top of an existing blockchain, usually Ethereum Smart contracts, which are self-executing contracts with the conditions of the agreement explicitly put into code, are used to produce and manage tokens. Tokens can represent a variety of assets, such as commodities, stocks, or even other cryptocurrencies.

Another key difference between coins and tokens is the way they are created and distributed. Coins are typically created through a process known as mining, where users provide computational power to validate transactions and earn rewards in the form of new coins. Tokens, on the other hand, are often created through initial coin offerings (ICOs), where a certain number of tokens are sold to investors in exchange for cryptocurrency.

In summary, the main difference between a coin and a token is that a coin operates on its own blockchain, while a token is built on top of an existing blockchain. This difference impacts the way they are created, distributed, and used.