Did you know, tokens and coins are not the same thing?
In this course, you’ll learn to be a pro in understanding whether a project’s digital asset is a token or a coin, and why that’s important to know!
Let’s not waste any time… Get started now! →
Token vs Coin
When jumping into the crypto world, you may have heard the term “token” quite often when referring to a project’s digital currency. However, not all currencies are tokens, they could be coins instead! What’s the difference?
A token* is a crypto asset built on top of a network. Examples include $AR, $LINK and $CRO. They’re mainly used to access a service, i.e., $AR is used to buy data storage space on Arweave. Tokens can also be seen as #NFTs, wrapped tokens, etc.
A coin*, on the other hand, is a digital currency native to a specific blockchain mainly used to store value. Examples of coins include $BTC, $ETH and $ADA. They can be traded and mined, however, aren’t typically used for utility functions.
When it Comes to $KYVE
Being that KYVE started off as a smart contract on Arweave, $KYVE was originally a token. From there, we transitioned to being an EVM-based smart contract on Moonbeam, maintaining the token classification and utility goals…
$KYVE can be used by anyone to fund a pool, rewarding good behavior of the nodes working within it. It can also be delegated/staked, or used to participate in KYVE’s governance, overall creating incentivization and motivating the full decentralization of the chain and protocol.
However, in April of this year, KYVE transitioned to being its own Layer 1 blockchain built with the Cosmos SDK*, transitioning $KYVE into a coin. However, $KYVE has held its same utility.
Conclusion
Congratulations! You made it through our course on the difference between a token and a coin!
Want to learn more? Feel free to check these resources:
- Want to learn about $KYVE? Visit our website.
- Run into any terms marked with * that you’re not aware of? Visit the KYVE Glossary to learn what they mean!