The difference is in the fat molecule. All fats and oils are composed of molecules called fatty acids. There are two methods of classifying fatty acids. The first you are probably familiar with, is based on saturation. You have saturated fats, monounsaturated fats, and polyunsaturated fats. Another system of classification is based on molecular size or length of the carbon chain within each fatty acid. Fatty acids consist of long chains of carbon atoms with hydrogen atoms attached. In this system you have short-chain fatty acids (SCFA), medium-chain fatty acids (MCFA), and long-chain fatty acids (LCFA). Coconut oil is composed predominately of medium-chain fatty acids (MCFA), also known as medium-chain triglycerides (MCT).