What are Tokens?
A comprehensive guide to digital tokens and blockchain standards
Understanding Digital Tokens
Tokens are digital assets that represent value or utility on blockchain networks. They enable decentralized applications, cross-chain interoperability, and new forms of digital economy.
What are Digital Tokens?
Digital tokens are programmable digital assets that exist on blockchain networks. They can represent various forms of value, from currencies and commodities to access rights and governance power.
Key Characteristics
- Fungible: Each token is identical and interchangeable
- Programmable: Smart contracts define token behavior
- Decentralized: No single entity controls the network
- Transparent: All transactions are publicly verifiable
- Borderless: Global accessibility without intermediaries
Types of Tokens
Utility Tokens
Provide access to services or products within a specific ecosystem
Payment Tokens
Used as digital currency for transactions and value transfer
Governance Tokens
Enable holders to participate in protocol decision-making
Stablecoins
Maintain stable value pegged to fiat currencies or commodities
Token Standards
ERC-20
Ethereum standard for fungible tokens
SPL
Solana Program Library tokens
ICRC
Internet Computer token standard
