Glossary
Token
16/04/2026
Token is a digital asset issued on an existing blockchain through smart contracts. Unlike a coin — which is native to its own blockchain and pays miners for securing it — a token piggybacks on a host chain (Ethereum, Solana, BNB Chain, etc.) and pays fees in the host chain's native coin.
Token vs coin
| Coin | Token | |
|---|---|---|
| Runs on | Own blockchain | Another chain (Ethereum, Solana, …) |
| Examples | BTC, ETH, XMR, DOGE | USDT, UNI, LINK, SHIB |
| Secures network | Yes (paid to miners/validators) | No — host chain does this |
| Creation | Requires launching a chain | Deploying a smart contract |
Some assets exist in both forms. USDT is a token on Ethereum (ERC-20), Tron (TRC-20), Solana (SPL) and others — the same dollar-peg, different host chains.
Types of tokens
- Utility tokens — give access to a product or service (e.g., BNB for exchange fees, LINK for oracle services)
- Governance tokens — grant voting power in a protocol (e.g., UNI in Uniswap)
- Security tokens — represent ownership in real assets or revenue streams; usually regulated
- Stablecoins — price-pegged tokens (USDT, USDC, DAI) — see Stablecoin
- NFTs — non-fungible tokens representing unique items
