GlossaryBeginner
Token
A digital asset represented by rules on a blockchain, often through a smart contract.
A token is a digital asset recorded on a blockchain. On programmable networks, a smart contract commonly keeps track of token balances and defines how units can be transferred or created.
Tokens can represent many things, including payment units, governance rights, access, or claims defined by an issuer. The label alone does not establish value, ownership rights, or safety.
Examples
- A stablecoin is a token designed to track the value of another asset.
- A token contract may require users to pay gas when transferring units.