Glossary - ChicksX

Token is a digital representation of an asset or utility on a blockchain, used for transactions or access rights.

Token is a digital asset created on a blockchain, representing ownership, rights, or access to services or products. Tokens can be categorized into utility tokens, which provide access to a specific product or service, and security tokens, which represent ownership in an asset or company. They are integral to blockchain ecosystems, facilitating transactions, governance, and incentivizing network participation. Unlike cryptocurrencies like Bitcoin, tokens can be created on existing blockchains, such as Ethereum, using standards like ERC-20. This versatility makes them crucial in decentralized finance and other blockchain applications.