Token Definition - What are Tokens?

What are tokens
What are tokens

Often you hear the word "token" when you get information about crypto currencies. But what exactly are tokens? Unfortunately there is no clear answer to this question, because the meaning of tokens is not exactly defined. But most people use tokens for crypto currencies, which are based on an already existing block chain. For example, if a new crypto currency is created in the Ethereum network, it has tokens. If a new currency uses a completely new block chain, it has coins.

Especially in Airdrops some units of a new crypto currency are given away. Many people then call these units tokens. But this is not a generally valid definition, because some people use tokens as a synonym for coins. So it is very difficult to define exactly what someone understands by tokens. The best thing to do is to ask what exactly the person means by the word token now, when the term is used in a conversation or discussion.

Freebitcoin Banner

Youtube-Video: Tokens in 2 Minutes

Crypto Glossary / Lexicon