Glossary
Token
A token is a unit of value or utility recorded on a blockchain, typically issued and managed by a smart contract rather than by the network's own base protocol. Tokens can represent many things, from access rights to ownership stakes, and are distinct from a chain's native coin.
Close-up. A token lives as an entry in a smart contract's ledger. Instead of running on its own dedicated blockchain, it is issued on top of an existing one and follows a shared standard so that wallets, exchanges, and other contracts know how to read balances, transfer holdings, and check supply. Standards like this are why a single wallet can hold many different tokens at once. This is the practical line people draw between a token and a coin: a coin is the native asset that secures and pays for its own network, while a token borrows that network's infrastructure.
Wide shot. The interesting part is what a token is allowed to represent. Some grant access to a service or a right to vote on a protocol's decisions. Others are designed to hold steady against an outside reference, or to stand in for a real-world claim. The word "token" describes the container, not the contents, so two tokens on the same chain can serve entirely different purposes.
Because a token's behavior is defined by code that anyone can inspect but few audit closely, its rules, supply, and permissions are only as trustworthy as that contract. Reading a token's documentation and understanding who controls it matters more than its ticker. Explore live assets to compare how different projects use the same underlying idea. This is informational only, not financial advice, so do your own research.