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In the crypto world, a token is a digital unit that lives within a blockchain and represents something of value.
It can be a currency (like $USDT), a voting right, an object in a game, a ticket to an event... even a part of a project.
They are programmable digital assets, created for different purposes.
Are all tokens the same?
No.
There are several types, but the most common are:
Utility tokens: allow access to functions or services (for example, BNB to pay lower fees on Binance).
Governance tokens: give the right to vote on decisions of a project (like in DAOs).
(Don't worry, topic for another post).
Stable tokens (stablecoins): like USDT or USDC, their value is tied to the dollar.
Game or metaverse tokens: like SAND or AXS, are used within crypto games.
NFTs: are also tokens, but unique and indivisible.
So... why are they used so much?
Because tokens democratize access.
Before, only a few could invest in projects, have a stake, or move money globally.
With tokens, anyone can do it from their phone, with little money and without intermediaries.
