A token represents an financial asset, an item of property or a good.
In contrast to coins, tokens do not have their own blockchain, but can be generated on existing blockchains with relatively little effort.
Tokens are often used like stocks or shares in a project. Therefore, they can serve as a driving force for the network on the one hand, and as company shares or voting rights on the other.
Tokens are therefore basic building blocks for operations with crypto values. They serve as tools for the identification and authentication of users on a computer network.
Only those who have a valid token are authorized to carry out a transaction on the associated blockchain. Payments on the Internet can be carried out very easily, quickly, securely and inexpensively.
There are different types of tokens, which we will not go into in detail here.