What is a Token?

Tokens are digital assets created on existing blockchain platforms that represent specific rights, value, or utility without requiring their own dedicated blockchain, typically following standardized protocols like ERC-20 on Ethereum or BEP-20 on BNB Chain that ensure compatibility with wallets, exchanges, and applications.

Unlike native cryptocurrencies such as Bitcoin or Ether that serve as the primary medium of exchange on their respective blockchains, tokens are secondary assets that leverage the security and functionality of established networks while serving specialized purposes within particular ecosystems or applications.

Tokens come in various forms including utility tokens that provide access to specific services, governance tokens that confer voting rights, security tokens that represent ownership in assets or enterprises, social tokens tied to creators or communities, and non-fungible tokens (NFTs) that represent unique digital or physical items.

The ability to create programmable tokens with customizable properties has enabled unprecedented innovation in organizational structures, incentive systems, and value distribution models, allowing projects to align stakeholder interests, reward participation, and coordinate economic activity without traditional corporate structures.

As the token economy evolves, these digital assets are increasingly bridging traditional and decentralized finance through asset tokenization, creating more efficient, transparent, and accessible markets for everything from art and real estate to intellectual property and financial instruments.