DIGITAL CURRENCY.

A digital coin is defined as an asset that is native to its own blockchain and can be used to trade currencies and store value. Consider Bitcoin or Ether. Each one of these coins has its own blockchain. Blockchain's primary goal is to keep track of all transactions involving its native cryptocurrency.

A token is much identical to a coin, except it usually uses the blockchain of another coin. let us understand with an example, Ethereum, a blockchain and its native coin is called Ether. Tokens, unlike coins, do not have their own blockchain. Instead, they function on the blockchains of other crypto currency.

Another significant distinction between tokens and coins is the value they represent. Tokens can represent assets or deeds, but crypto currencies are essentially digital forms of money. UniSwap, for example, is a platform token that can be used to swap one token for another on Ethereum. Coins are fungible, divisible, acceptable, portable, durable, and limited in availability, just like money. The majority of crypto fans believe that cryptocurrencies will eventually replace traditional money in near future.

The following are the main properties of coins:
1) They are linked to a public-open blockchain, which anyone may join and participate in;
2) They can be mined, sent, or received.

Coins are designed to serve only one purpose: to be used as money.

At some point in their lives, everyone has used a token. A token is the dinner for two vouchers you received in the mail. Your car title is merely a symbol. When you sell your car, the value of the title is transferred to someone else. You can't, however, go to Laptop Shop and buy a computer or a dinner coupon with such title.

It's important to understand the difference while dealing with blockchain networks. Other "currencies" on Ethereum are tokens, while Ether is the cryptocurrency. On RSK, the cryptocurrency is RBTC, while the other "currencies" are tokens.

Following are very important points to be jot down
• When transferring cryptocurrency, transaction fees (or gas fee) are lower, but when transferring tokens, they are higher.
• Because transaction fees (or gas fees) are always paid in cryptocurrency, you'll need some cryptocurrency in the same account when transferring tokens.

Note: Bitcoin's blockchain does not permit you to develop anything, whereas Ethereum and Solana's blockchains allow developers to create everything from new tokens and meme coins to decentralized applications.