They’re all called “coins,” but some are native to a blockchain, while others are issued on a different blockchain.
Here’s how I understand it: native coins are recorded and issued by the protocol itself, while token balances are recorded in the corresponding contracts, and the rules depend on how the contract code is written.
Wrapped tokens represent an asset on another blockchain or under another standard at a 1:1 ratio. For example, WBTC is an ERC-20 token on Ethereum that represents Bitcoin.
$ETH is Ethereum’s native coin. Transferring tokens on Ethereum requires $ETH to pay gas fees.
Here’s how I understand it: native coins are recorded and issued by the protocol itself, while token balances are recorded in the corresponding contracts, and the rules depend on how the contract code is written.
Wrapped tokens represent an asset on another blockchain or under another standard at a 1:1 ratio. For example, WBTC is an ERC-20 token on Ethereum that represents Bitcoin.
$ETH is Ethereum’s native coin. Transferring tokens on Ethereum requires $ETH to pay gas fees.