Overview
A blockchain token is a digital asset issued on a blockchain, representing value, utility, or ownership. Tokens power applications, governance, and economies. They are distinct from native coins.
How It Works
Tokens are issued by smart contracts following standards like ERC-20 and ERC-721. They can be transferred, traded, and programmed. Their value derives from utility, demand, and network effects.
Why It Matters
Tokens are the incentive layer of Web3, aligning users and protocols. They enable new business models and ownership. Understanding token types is essential to evaluating projects.
Related Concepts
Blockchain tokens relate to ERC-20, NFTs, and Governance Tokens. They are the asset layer of decentralized networks.