As a context for those who don’t know, blockchain is a system that runs on the internet and on the blockchain there are many networks that run on it.
Coins are a type of crypto asset that runs directly on top of the blockchain system. For example, BTC that operates and works on the Bitcoin blockchain or ETH that operates and works on the ethereum blockchain.
Coin transactions can be made from one person to another. However, as is characteristic of crypto in general, there are no physical coins that move when we send and receive them. All “coins” exist as data on a global database. This basic data is contained in the blockchain which can track all transactions and is checked and tested by computers all over the world.
Then, what is the difference with tokens?
Token is a type of crypto asset that uses an existing network on the blockchain system. In other words, the token rides on an existing and trusted network in the blockchain system.
The most famous example of a standard token from the ethereum network is ERC-20. ERC stands for ethereum request for comment, and the number 20 on ERC-20 serves as the identity of the proposal.
There are many tokens that ride on the ethereum network and use the ERC-20 standard, some of them are:
Chainlink is a blockchain abstraction layer that enables universally connected Smart Contracts. Through a decentralized oracle network, Chainlink enables blockchains to securely interact with external data feeds, events, and payment methods, providing the critical off-chain information required for complex Smart Contracts to become the dominant form of digital agreement.
Decentraland (MANA) defines itself as a virtual reality platform powered by the Ethereum blockchain that enables users to create, experience and monetize content and applications.
Sandbox is a blockchain-based virtual world that allows users to create, build, buy and sell digital assets in the form of games. By combining the power of a decentralized autonomous organization (DAO) and non-exchangeable tokens (NFT), Sandbox creates a decentralized platform for a thriving gaming community.
Not only that, along with the development of technology, Binance Smart Chain also issued a BEP-20 network which is also often used as a standard token. This BEP-20 network is also used by many tokens. For example SHIB, CAKE, BAKE.