Token(Token) Introduction
Token is a digital unit of value recorded on a blockchain that can represent assets, utility, or access rights. It is typically issued on an existing blockchain and can be classified by its function and whether it is fungible.
Token What Is a Token
Token is a digital unit recorded on a blockchain that can represent assets, utility, or access rights within a specific ecosystem. It is typically built on an existing blockchain rather than having its own independent native chain. Its ownership and transfer records are maintained by the underlying network, making them verifiable and transferable.
Standards and Underlying Networks
Many Token rely on smart-contract-enabled networks, such as Ethereum、BNB Chain、Solana and Polygon.ERC-20 sets out a set of rules that Ethereum tokens should follow, making them more compatible with wallets, trading platforms, and other applications. The selected network also affects transaction speed, costs, and platform compatibility.
Classification by Function
Utility tokens are typically used to access a service or serve as a medium of exchange within an ecosystem;Security tokens represent financial assets, such as tokenized company shares, and may carry ownership or dividend rights. Their specific legal characteristics still depend on how they are designed and the applicable rules.
Fungibility and Use
Fungible tokens each have units that are equivalent and interchangeable;Non-fungible tokens(NFTs) each have unique attributes and cannot be exchanged on a like-for-like basis, and are commonly used for digital art, collectibles, and game items.Token can also support DApps, governance mechanisms, digital ownership, and on-chain representations of real-world assets.
Original Tutorial
https://www.binance.com/en/academy/glossary/token
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