Tokenization and cryptocurrency are related concepts but serve different purposes. Cryptocurrency refers to digital currencies like Bitcoin and Ethereum, which operate on a blockchain and are primarily used as a medium of exchange, store of value, or investment asset. These cryptocurrencies function independently, relying on decentralized networks and cryptographic security.

Tokenization, on the other hand, is the process of representing real-world or digital assets as digital tokens on a blockchain. These tokens can represent anything from real estate, stocks, and artwork to digital items like in-game assets. Tokenization enables fractional ownership, improves liquidity, and enhances security by using blockchain technology.

The key difference lies in utility and purpose. Cryptocurrencies are designed primarily as a form of money, while tokens can serve various roles, such as utility tokens (providing access to a service) or security tokens (representing ownership in an asset).

Additionally, not all tokens are cryptocurrencies, but all cryptocurrencies are technically tokens. Cryptocurrencies like Bitcoin have their independent blockchain, whereas many tokens (such as ERC-20 tokens on Ethereum) operate on existing blockchains.

Cryptocurrency is a type of token, but tokenization extends beyond digital currencies, transforming real-world assets into blockchain-based digital representations.