What is a Crypto Token? A detail Overview
A crypto token is arguably the most fundamental element of digital currency. in this article, we’ll explain exactly why.
What is it?
The most basic definition of a crypto token is that it represents a specific fungible and tradable asset or utility.
For those who are unaware of what “fungible” means, it is the standard ability of a good/asset to be interchangeable with an array of other individual goods/assets of the same type. Can the token be bought, sold and traded for other assets like the Euro or another token?
Fungible means the assets that are exchangeable for one another. Moreover, digital tokens may better simplify the exchange and trade processes because fungibility generally implies equal value between the assets.
A quick overview of blockchain
The asset or utility that a crypto token represents can often be found on a blockchain. You may already know what a blockchain is, but for the sake of providing context, let’s briefly go over what exactly it is.
Blockchain is the cryptographic ledger technology that connects with virtual currency. It is essentially a list of records (the ‘blocks’) that are linked together on a public database (the ‘chain’). The blocks existing on this digital chain are full of various pieces of information.
More on tokens:
Crypto tokens are a special brand of virtual currency tokens. They reside on their own blockchains and, as previously mentioned, represent an asset or utility. For example, someone can have a crypto token that represents a specific number of customer loyalty points within a blockchain. In a way, these are tools that manage such details pertaining to a retail chain.
There can usually be another crypto token that provides entitlement to the token holder. This entitlement is to view roughly 10 hours of streaming content on a blockchain that shares videos.
The shekel was the name for both a specific weight of barley and the coin which could be used to collect that weight of barley from the city’s warehouse. Shekels eventually became a form of coinage used in several different nations, which could be used simply as a currency to purchase all sorts of things, and was no longer exclusively a “redeem for one bag of barley” token. Click here to know more about Barley Token. Its a referral program in the Crypto industry with a background of the Coffee and beer industry.
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