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Difference between Coin and Token

1. Own blockchain

A coin runs on its own blockchain.
Examples: Bitcoin on Bitcoin blockchain, Ethereum on Ethereum blockchain.
A token is built on top of an existing blockchain like Ethereum or BNB Chain.

2. Purpose

Coins are mainly used as digital money for payments, fees, and value transfer.
Tokens usually have specific use cases like governance, utility, access to services, NFTs, or rewards.

3. Creation

Coins are created through mining or staking as part of the blockchain’s consensus.
Tokens are created using smart contracts, without building a new blockchain.

4. Transaction fees

Coins are used to pay network fees. For example, ETH is used for gas on Ethereum.
Tokens cannot pay network fees directly. You still need the native coin.

5. Flexibility

Creating a coin requires deep technical work and high cost.
Creating a token is faster, cheaper, and more flexible, which is why most new projects start as tokens.

In short:
Coins are the foundation of a blockchain.
Tokens are applications built on top of that foundation.
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