The key differences between tokens and cryptocurrencies are:
- Purpose: Tokens are designed for specific use cases within a system, while cryptocurrencies are designed as a general-purpose currency.
- Decentralization: Cryptocurrencies are decentralized, meaning they are not controlled by any single entity, while tokens can be centralized or decentralized depending on the system they are used in.
- Security: Cryptocurrencies use advanced cryptography to secure transactions and control the creation of new units, while tokens may use simpler forms of encryption or authentication.