Token VS Coin: What’s the difference?
As a utility token, rather than a crypto coin, you may be unsure as to what this means.
AT GMR we understand the crypto world can be a confusing place. With so much technical jargon, people often feel more confused after researching the topic than they did before they started. There are many terms to understand with a range of different meanings. For those who are new or unfamiliar with these terms, understanding what we do at GMR may not be so clear. As a utility token, rather than a crypto coin, you may be unsure as to what this means. Here we want to help explain the difference between tokens and coins.
What is a coin?
A crypto coin is often known as a cryptocurrency or a native coin. This is specified as an asset with its own blockchain. This blockchain will keep track of all transactions involving its native coin.
Much like physical currency, coins are used for payments. Originally created to replace using traditional money. This doesn’t mean that you actually see a physical coin. This transaction between coins exists as data on the blockchain. The blockchain will track, check and verify all transactions. The most well known cryptocurrencies include Bitcoin and Ethereum.
What is a token?
GMR is a utility token and not a coin. We have created this token to formulate a credible synergy between cryptocurrency investments and the online gaming industry.
A token can have different uses. For example a token such as utility tokens, can be used to access a product or service. For the most part, the majority of tokens have been created to be used with decentralised applications. Used to activate the features of an application they were designed for.
How is a token used?
Although they are one of a kind assets, tokens can change ownership. A great example of a token is an NFT (non-fungible token). A completely unique item which is one of a kind and can not be replaced. You may have heard of our very own NFTs which we have coined ‘NFLs’. Our ‘non-fungible Leets’ are unique and cannot be exchanged ‘like-for-like’.
To put it simply, the difference between a token and a coin is that a token represents what a person owns, while a coin denotes what they're capable of owning.
When to use a token and when to use a coin
In general, if you are looking to buy a product, you will most likely need coins.
Whereas if you wish to access a service, you might wish to look at whether there’s a utility token you could use.
The GMR Token
We built our utility token on the Smart Chain network and it is now trading on the updated contract (V2) GMR. We have never stopped developing, innovating, and progressing since its launch in May 2021.