I recently read a Reddit post about the difference between a token and coin. It honestly really unlocked something for me regarding my understanding of how blockchains work, and how smart contracts work. So basically, my summary is as such: a coin is a cryptocurrency built on a blockchain. A token is something that deploys from that blockchain, like the ERC-20 token standard.

For the Ethereum blockchain, ERC-20 tokens use the Ethereum blockchain for transactions. This is why Ethereum gas is still needed even if you are transacting with an ERC-20 token. Here's the original post I read, you should give it a read if you found this post interesting:

https://www.reddit.com/r/CryptoCurrency/comments/mn8662/whats_the_difference_between_a_coin_and_a_token_a/

I'll leave with this drawing I made that sort of relates to the above:

![cables 2.png](1)


Until next time,

Flarn


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