Protocol Token vs Token
Quick comparison to help you distinguish these two crypto terms.
Protocol Token
intermediate
fundamentals
A cryptocurrency token native to a specific blockchain protocol or decentralized application, often combining governance rights, utility functions, and value capture mechanisms tied directly to protocol success and usage.
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beginner
fundamentals
A digital asset created and managed through smart contracts on an existing blockchain platform, representing various utilities, assets, or rights without requiring its own independent blockchain infrastructure, distinct from coins that operate their own networks.
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