What is a Token?

token is a digital unit of value issued by an entity on a blockchain, which can represent assets or utilities, unlike cryptocurrencies that have their own blockchain. Tokens can have various uses, such as representing digital assets, access rights, or being used on decentralized platforms (DeFi).

More details:

Difference with cryptocurrencies:

While cryptocurrencies (like Bitcoin or Ethereum) have their own blockchain, tokens are usually built on an existing blockchain (like Ethereum).

Functions of tokens:

Tokens can represent a variety of assets or utilities, such as:

Digital assets: Artwork, real estate, etc.

Access rights: Access to exclusive content, services within a platform, etc.

Utility tokens: Facilitate transactions within a decentralized platform or network (DeFi).

Governance tokens: Allow users to participate in the decision-making of a project. #BinanceTurns8