Token
CryptoGlossary term
Definition
A digital asset created on an existing blockchain rather than on its own native blockchain. Tokens can represent a wide variety of assets or utilities, including voting rights, access to services, or ownership stakes in a project. They are commonly built on platforms like Ethereum using standards such as ERC-20 for fungible tokens or ERC-721 for NFTs.
Related terms
- NFT (Non-Fungible Token)A unique digital asset stored on a blockchain that represents ownership of a specific item such as artwork, music, collectibles, or virtual real estate. Unlike cryptocurrencies, NFTs are not interchangeable because each one has distinct properties and value. They use smart contracts to verify authenticity and track ownership history.
- TokenomicsThe economic model and design principles governing how a cryptocurrency token is created, distributed, and managed within its ecosystem. Tokenomics includes factors like total supply, inflation rate, distribution schedule, utility, and incentive mechanisms. Understanding tokenomics is essential for evaluating a crypto project because it directly affects the token's long-term value and sustainability.
- Smart ContractA self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predetermined conditions are met. Smart contracts eliminate the need for intermediaries by running code that is transparent and cannot be altered once deployed. They are the foundation of DeFi applications, NFTs, and many other blockchain-based services.
- AltcoinAny cryptocurrency other than Bitcoin, including well-known coins like Ethereum, Solana, and Cardano. Altcoins were created to improve upon Bitcoin's limitations or serve different purposes, such as enabling smart contracts, faster transactions, or enhanced privacy. There are thousands of altcoins available, each with varying levels of utility, risk, and market adoption.
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