Token
A token is a digital asset created on an existing blockchain, often used for specific purposes like payments, access or governaance.
Quick Reference:
Built on another Blockchain. Utility Tokens. Governance Tokens.
Expanded Explanation:
Unlike Bitcoin or Ethereum, which run on their own blockchains, tokens are created on top of them. For example, thousands of tokens exhsit on Ethereum, each with their own function. Some act as currencies within an app, others give holders voting rights, and others represent ownership of assets. Tokens are the building blocks of many crypto projects. You can think of them as apps running on a bigger operating system.