Token

A token is a unit of value created and managed by a smart contract on an existing blockchain, rather than being the blockchains own native coin. Tokens can represent many things—governance rights, access to a service, or a claim on an asset—and follow shared standards so wallets and apps can handle them consistently.

A common misconception is that every token is a currency or an investment; many exist for specific uses within a single application. Because tokens live inside contracts, their behaviour depends on that contracts code. By contrast, a coin is a networks native asset.