A coin in the realm of cryptocurrency can refer to a crypto asset that operates independently on its blockchain or refer to a single unit of that cryptocurrency.

What Are Coins?

Coins represent cryptocurrencies that operate independently on a special blockchain , different from others. The single unit of each cryptocurrency is usually referred to as a coin.

This term is used to differentiate these standalone cryptocurrencies from tokens, which depend on a parent blockchain platform such as Ethereum (ETH) . 

Pioneer Coin in Cryptocurrency Market

It is Bitcoin (BTC) , introduced in January 2009. Bitcoin uses a decentralized ledger called blockchain, spread geographically, to record all transactions in its network. 

This blockchain ensures preventing the unauthorized creation of new coins, which is achieved through a computationally intensive process called mining.

Many New Coins Appear

Some with custom blockchains developed from scratch, and some - called forks - are based on the blockchains of different existing coins.

For example, Bitcoin Cash (BCH) and Bitcoin Gold (BTG) are forks of Bitcoin and, at the time of their creation, shared the same blockchain.

However, they are still considered coins, i.e. independent cryptocurrencies because after the fork point, their blockchain continues to operate separately from Bitcoin.

In contrast, some platforms, including Ethereum and EOS (EOS), allow people to create tokens. Tokens are cryptocurrencies that depend on the operation of a parent blockchain and will become unusable if the underlying platform stops functioning.

Conclusion

Overall, a “coin” in the cryptocurrency world refers to a crypto asset that operates independently on its own blockchain or represents a single unit of that cryptocurrency. 

Starting with Bitcoin in 2009, coins operate independently, remaining separate even in the case of a fork. It is important to note that coins are different from tokens in that they depend on a parent blockchain. As the cryptocurrency world continues to evolve, the term “coin” remains fundamental for describing stand-alone crypto assets.

Also read: 

What is a Meme Coin and Why is it Popular?

AI Coin: What It Is and Its Advantages

What Does Coin Mean in Crypto and Examples?

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.