In what a difference between token and coin?

In the crypto-currency community coins and tokens are called accounting units of the cryptocurrency – digital, or “virtual” currency, creation and control of which are provided by cryptographic methods. As a rule, the accounting of the Cryptocurrency is decentralized, the functioning of the Crypto-currency, in most cases, is based on the technology of blockchain.

Crypto-currencies, called coins, use their own independent blockchain. These detachments can be forks of bitcoin (Litecoin, Dogecoin, Bitcoin Cash, etc.) or their own designs (Ethereum, Monero, etc.). As a rule, coins are emitted by creating new blocks in the blockchain. The technology of creating new blocks in the blockchain system using the consensus protocol Proof-of-work is called “mining” (from English mining – mining). For the blockchain using Proof-of-stake protocol, this technology is called “forging” (from English forging – forging) or “minting” (from English minting – coin chasing). In this case, the issue is the result of the operation of the crypto-currency protocol, and the issuer itself is the crypto-currency system itself.

Unlike coins, tokens use blockchain systems of those platforms on which they are issued. Currently, the largest number of tokens is released on the Ethereum platform (Augur, Golem, Civic, etc.). There are other platforms on which tokens can be issued, for example, Counterparty (FoldingCoin token), Omni (MaidSafeCoin token), NXT (Ardor token), Waves (ZrCoin token). As a rule, tokens are issued by a single or accelerated emission. Typically, tokens are issued to attract investment in the form of ICO (English Initial Coin Offering – “initial offer of coins, initial coin placement”). Sometimes there is another name for the process of attracting investments – ITO (English Initial Token Offering – “the primary offering of tokens, the primary location of tokens”). In this case, the issue is carried out by a natural or legal person, which initiates the release of tokens.