Understanding Coins in the Cryptocurrency World
Coins are autonomous cryptocurrencies operating on their blockchains, distinct from other coins.
The term “coin” can also denote a single unit of such a cryptocurrency.
This designation differentiates autonomous cryptocurrencies from tokens, which rely on parent blockchain platforms like Ethereum (ETH).
The Birth of Decentralized Cryptocurrency
The first cryptocurrency coin introduced to the market was Bitcoin (BTC) in January 2009.
Bitcoin utilizes a decentralized and geographically distributed ledger known as the blockchain.
The blockchain records all transactions within the network, ensuring the currency’s integrity and preventing the creation of new coins through methods other than the computationally intensive mining process.
Diverse Cryptocurrency Landscape
Since the inception of Bitcoin, numerous other coins have emerged.
Some coins are built on their independent blockchains, created from scratch.
Additionally, coins are known as forks based on another coin’s existing blockchain.
On the other hand, specific platforms, such as Ethereum and EOS (EOS) facilitate the creation of tokens.
Tokens are cryptocurrencies that rely entirely on the functionality of their parent blockchain.
If the underlying platform were to cease operating, the tokens would become unusable.