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 and management of tokens are core activities for a cryptocurrency software development company, especially when building decentralized finance (DeFi) protocols and decentralized applications (dApps). Tokens are also central to token-based fundraising models such as Initial Coin Offerings (ICOs) and Initial DEX Offerings (IDOs), as well as to transactions, rewards, governance, and access within DeFi ecosystems.

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