Definition
A token is a digital unit of value created and tracked on a blockchain. It represents something that can be owned or transferred, such as a digital asset, a right, or a form of access. Tokens exist as entries in blockchain records and follow specific rules defined by the protocol or smart contract that issues them.
In Simple Terms
A token is like a digital item that lives on a blockchain. It is something that can belong to someone and be moved between people using blockchain technology. The rules for each token are set in computer code, and the blockchain keeps track of who owns which tokens.
Context and Usage
The term “token” is commonly used when talking about digital assets on blockchains, including cryptocurrencies and other blockchain-based representations of value or rights. It appears in discussions about blockchain projects, crypto markets, and digital ownership. Tokens are often categorized and named according to the blockchain or protocol where they are created and recorded.