Tokens vs. Coins
Coins are currencies in the true sense.
They have recognized value outside of a given blockchain project (i.e. they are universally recognized – by humans and other coin ecosystems – as a valid form of payment).
Tokens are digital assets that have existence and meaning only inside a project.
They are used as a way to facilitate payments within the project’s ecosystem.
Tokens can be further categorized into security tokens and utility tokens.
Security tokens give holders a share of a company’s ownership, for example, tokens issued by the Decentralized Autonomous Organization (DAO) project.
Utility tokens are based on a use case – e.g. filecoin is used for file storage, namecoin for decentralized DNS etc.
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