Definition
A digital asset created on an existing blockchain platform. Unlike coins which have their own blockchain, tokens are built using smart contracts on networks like Ethereum.
Why It Matters
Tokens represent a vast ecosystem of digital assets including utility tokens, governance tokens, security tokens, and NFTs, each serving different purposes.
Example
Uniswap's UNI token is an ERC-20 token built on Ethereum that gives holders governance voting rights.
Related Terms
ERC-20
Smart Contract
NFT
Tokenomics