Token

What is Token?

A token is a type of digital asset that is created and managed on top of an existing blockchain infrastructure, most commonly through the use of smart contracts. Unlike native coins, which have their own blockchain (e.g., Bitcoin or Ethereum), tokens rely on a host network like Ethereum (ERC-20), Binance Smart Chain (BEP-20), or Solana. Instead, they depend on a host network such as Ethereum (via the ERC-20 or ERC-721 standards), Binance Smart Chain (BEP-20), or other programmable blockchain ecosystems.

Tokens can serve a wide range of purposes within a blockchain environment. Utility tokens provide access to specific services or features on a platform. Security tokens may represent ownership in an asset, company, or investment product, often subject to financial regulations. Governance tokens grant voting rights within decentralized finance (DeFi) or DAO ecosystems, enabling token holders to participate in the evolution of a protocol or platform. Some tokens are also used for stablecoins, game assets, or loyalty and rewards systems.

The flexibility and programmability of tokens have made them a foundational component in modern blockchain use cases, particularly in DeFi, gaming, supply chain logistics, real-world asset tokenization, and more. Because tokens are governed by code deployed on smart contracts, they can be created, distributed, and exchanged without intermediaries, contributing to the decentralization of digital finance and services.