SIRIN LABS’ mission is to bridge the gap between the blockchain economy and the mass market. In order to accomplish this, we need to bring non-crypto users into the fold and get them excited about the crypto revolution. We need to help them understand a lot of the fundamental terms and ideas within crypto. One of the areas that requires clarification is the differentiation between a token and a coin.
In conversations on Telegram, comments on social media, website posts, web forums, and within the greater crypto community, the terms token and coin are generally used interchangeably. Although they sound like they’re the same, it’s important to ask the question: Is there a difference between a token and a coin?
Unlike most other areas within cryptocurrency and blockchain, the answer is simple and straightforward. Tokens and coins are very similar with a singular point of differentiation: a coin is any blockchain’s native cryptocurrency. As an example, Ether (ETH) is the default currency for the Ethereum blockchain, which would make it a coin. SRN, by contrast, is a utility token that operates on the Ethereum blockchain, which defines it as a token.
The same would be true of coins and projects on any other blockchain. Cardano’s ADA, as the default currency is a coin, and any other project utilizing Cardano’s blockchain would be automatically categorized as a token.
Through our blog, SIRIN LABS is dedicated to providing the crypto community with essential and helpful information. While we tackle the complex and often difficult task of helping novices understand areas of crypto and blockchain such as consensus algorithms and orphaned blocks, sometimes it’s also nice to come across areas that are simply cut-and-dry.