Hi to you all,
I know this is quite a stupid question, but I've searched info everywhere and I'm always not sure about the difference... Here's my understanding:
There are lots of blockchains (code), each blockchain has its coin. The coin is the code based on the certain blockchain. Such as bitcoin, ether. The blockchain of bitcoin only can do money transactions, not smart contract. When projects need to build a contract between parties (a platform for freelancers, for example), they use the blockchain Ethereum.
Tokens, are the coins that don't have their own blockchain, they use the blockchain of others to build their program. But, my question is, in this case, why every token's dream is to be the "next bitcoin"? Since they don't have their own blockchain anyway, how could they ever be a coin?
Thank you guys in advance for helping me clear this up
A Token is typically an ERC20 based on the Ethereum blockchain which uses something called a 'smart contract' in order to provide something like a utility or dividend to it's owners. A coin is typically mineable and has it's own blockchain and it's simply used as a store of value and requires miners to operate and process transactions on it's blockchain, where as a token uses Ethereums miners to process it's transactions ans you pay a 'gas' fee per transaction to those miners.
Hope that helps clear some things up.