The difference between a coin and a token on Binance:
On Binance, a coin and a token are two types of digital assets, but they fundamentally differ. A coin (like BNB) has its own blockchain, while a token does not have its own network and is built on an existing blockchain.
Coin:
Own blockchain:
A coin is the native currency of a specific blockchain. For example, BNB is the native currency of the Binance Smart Chain.
Consensus mechanism:
A coin uses its own consensus mechanism to secure the network and validate transactions.
Used as a means of payment:
It can be used as a means of payment within its own blockchain network.
Token:
No own blockchain:
A token does not have its own blockchain; it is created on an already existing blockchain.
Follows the host blockchain:
A token follows the rules and conditions of the blockchain it was created on.
Multiple purposes:
Tokens can be used for various purposes, such as representing assets, providing voting rights, or accessing certain services.
Examples:
ERC-20 tokens on the Ethereum network, and BEP-20 tokens on Binance Smart Chain.
In summary: a coin is a primary digital asset of a blockchain, while a token is a digital asset built on another blockchain.
