Token

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A token is a digital representation of an asset, utility, or right that resides on an existing blockchain network. Unlike cryptocurrencies like Bitcoin or Ether which have their own native blockchains, tokens are typically created and managed using smart contracts on platforms such as Ethereum (e.g., ERC-20 tokens), Binance Smart Chain, or Solana.

Tokens can serve a multitude of purposes. Utility tokens grant users access to a product or service within a specific ecosystem. Security tokens represent ownership in an asset like company equity or debt, and are subject to securities regulations. Governance tokens give holders voting rights in a decentralized autonomous organization (DAO). Non-fungible tokens (NFTs) represent unique digital or physical items, like artwork or collectibles. The issuance of tokens is often a key part of Initial Coin Offerings (ICOs) or Initial DEX Offerings (IDOs) to raise capital for new projects. They are integral to the functioning of decentralized finance (DeFi) protocols and various decentralized applications (dApps), facilitating transactions, rewards, and access.

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