Introductions to cryptocurrency always include the word “blockchain.” A blockchain is a distributed database that tracks cryptocurrency transactions. Although blockchains and cryptocurrency have been entangled since the very beginning, they are different. The blockchain architecture can be used for many purposes besides virtual currency, and digital currencies don’t need to be implemented on blockchains. However, the world’s current cryptocurrencies are based on blockchains because the blockchain architecture offers unique technical benefits. Every digital currency currently trading is a blockchain cryptocurrency.

Coins and Tokens
We tend to use the terms “coin” and “token” interchangeably when referring to units of cryptocurrency, but they are different.

A coin is the native currency of a blockchain. For example, Ether is the coin of the Ethereum blockchain. Crypto coins include Bitcoin, Ripple, Ethereum, Dogecoin, NEO, and Litecoin.

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Tokens are coins that are built on another blockchain. Dozens of tokens have been built on the Ethereum blockchain, for instance, including Enjin Coin, SAND, Radix, and Lotto.

One important difference between coins and tokens is that gas – essentially the “tax” on crypto transactions – must generally be paid using the blockchain’s native currency. So if you use SAND or Radix or Lotto, your blockchain transaction charges will be paid in Ether. Conversion and payment may happen automatically in the ảnh nền or you may need to keep some Ether in your wallet, depending on the token you are working with and the application you are using.