What does token mean in network terms?

Token is a digital asset that represents value or rights and is tradable, programmable and divisible. Tokens can be used for utility purposes (such as file storage rewards), governance (such as voting rights), asset ownership, or collectibles. Common examples of tokens include Filecoin, Maker, and CryptoPunks.

What does token mean?

Definition:
A token is a virtual or digital asset that can represent a certain value or right. Unlike currencies, tokens generally do not have legal status but are created and issued by a specific issuer.

Features:

• Tradability: Tokens can be traded like stocks or bonds, with their value affected by supply and demand.
• Programmability: Tokens can be programmed utilizing smart contracts, allowing complex transactions or operations to be performed.
• Divisibility: Tokens can often be subdivided into smaller units for easier trading and use.

Uses:

Tokens have a wide range of uses, including:

• Utility Tokens: Give holders access to a specific product or service.
• Governance Token: Allows holders to participate in the decision-making and management of the blockchain network.
• Security Tokens: Represent ownership or interest in a company or asset.
• Collectible Tokens: Digital art or items with collectible or speculative value.

Tokens in Internet parlance:

In Internet parlance, tokens usually refer to virtual currencies used in social media or online communities. These tokens can be used to purchase virtual goods, reward content creators, or unlock special features.

Example:

• Utility Token: Filecoin (FIL) is used to provide rewards for decentralized file storage networks.
• Governance Token: Maker (MKR) allows holders to vote on the MakerDAO stablecoin protocol.
• Security Token: Tezos (XTZ) represents an ownership interest in the Tezos blockchain network.
• Collectible Tokens: CryptoPunks and Bored Ape Yacht Club are both popular digital collectible tokens.
• Network Tokens: Twitch Bits and Discord Nitro Credits can be used to support creators on these platforms or unlock premium features.

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