ONINO Docs
  • Introduction to ONINO
    • Welcome to ONINO
    • The Tokenization Opportunity
    • ONINO Blockchain
  • ONINO Tokenization Platform
  • ONINO Developer Platform
  • Tokenomics
    • Incentive and Mechanism Design
    • Token Distribution & Emission Schedules
  • For Developers
    • Building on ONINO
    • Mainnet Configuration
    • Testnet Configuration
    • Solidity Compiler Versions
    • Nodes & Validators
      • For Validators & Node Operators
      • Validator Ramp-Up Phases
    • Developer Platform Overview
      • Quickstart Guide
      • Overview
      • Templates
      • Brainstorming AI
      • Code Generator AI
      • Contract Import
      • Development Studio
      • Deployment Suite
      • Smart Contract API
      • Integration AI
      • Contract Manager
      • How-To: Using AWS KMS wallets with the ONINO Smart Contract API
      • Smart Contract Templates
        • Template Overview
        • Creating Tokens
          • Token with Fixed Supply
          • Token with Mintable Supply
        • Creating NFTs
          • Standard NFT
          • NFT with fixed Supply
        • Create your Custom Project
  • For Users
    • Welcome to ONINO
    • Staking Guide
    • Token Upgrade Process
    • Getting Started with ONINO
      • How to add the ONINO Network to your Wallet
      • How to create a Wallet
    • The ONINO Tokenization Platform
      • Walkthrough & Guide
  • FAQs
    • General Blockchain FAQs
    • What is tokenization?
    • ONINO General FAQs
    • Learn more about blockchain
      • How to use different blockchain networks?
      • What is the Ethereum Virtual Machine (EVM)?
      • What is a Smart Contract?
    • What are Crypto Tokens & Coins
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  • Coins, Tokens and Currencies - What is what?
  • The Crypto Fundamentals: Coins and Tokens
  • What Are Crypto Tokens?

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  1. FAQs

What are Crypto Tokens & Coins

A quick intro to crypto tokens and coins.

Coins, Tokens and Currencies - What is what?

The terms 'coin' and 'token' are often used interchangeably, but did you know they're as different as apples and oranges? While the term currency is widely used to describe the entire class of digital assets, we need to take a closer look at coins and tokens to understand the fundamental workings of blockchain.

The Crypto Fundamentals: Coins and Tokens

Both coins and tokens are digital assets. At their core, they use blockchain technology, a decentralised digital ledger, for secure transactions. They're like the yin and yang of the crypto universe, interrelated yet fundamentally different.‍

What Are Crypto Coins?‍

Crypto coins are the core of their own blockchain universe. Think of bitcoin (BTC) - the godfather of all cryptocurrencies - as a perfect example. Bitcoin operates on its own blockchain. This independence is what makes it a 'coin'.

So why would anyone want to maintain these blockchain networks? Enter the miners and validators, the unsung heroes of the crypto world. They crunch numbers, solve complex equations and keep the network secure, all to validate transactions. And for their hard work? They earn the native coin of the blockchain they're supporting. This incentive is the heartbeat of every blockchain

What Are Crypto Tokens?

If coins are like main characters in novels, tokens are like supporting roles - they don't have their own blockchain, but live on existing ones. Ethereum is a blockbuster example of a network teeming with tokens. It hosts a variety of digital assets that adhere to specific standards, such as ERC-20, ERC-721 and ERC-1155, thanks to its smart contract capabilities.

Tokens are incredibly versatile. They can be anything from an in-game currency, such as SAND in The Sandbox game, to governance tokens that allow you to vote on protocol changes in a Decentralised Autonomous Organisation (DAO).

‍Tokens are the LEGO blocks of the blockchain world, fitting into different decentralised applications (dApps) and DeFi platforms. You can exchange them, lend them, and even link them to real-world assets like gold. In essence, tokens bring with them a kaleidoscope of functionality that goes beyond simply serving as currency.

‍Tokens have played an irreplaceable role in the rise of decentralised finance (DeFi). Platforms such as Uniswap have changed the way we think about financial transactions, using tokens for everything from providing liquidity to paying fees.

As well as being tradable assets, many tokens serve specific functions within their ecosystems. Whether it's in-game currencies, loyalty points or governance voting rights, utility tokens are the building blocks of Web3, the next generation of internet applications.

Who's to say you won't create the next revolutionary token? With smart contracts, the possibilities are endless. You don't need to build a whole new blockchain, you can create your token for any purpose you can think of!

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PreviousWhat is a Smart Contract?

Last updated 7 months ago

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