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Tokens are a type of digital asset recorded and verified through blockchain technology. Here are the main characteristics and applications of Tokens:
Decentralization: Tokens do not require centralized entities (such as banks) to verify and record transactions. They achieve this through a distributed ledger (blockchain).
Security: Tokens use encryption technology to ensure the security and immutability of transactions.
Use Cases: Tokens can be used in various scenarios, including payments, investments, and tokenized assets.
Blockchain Technology: Tokens are closely linked to their underlying blockchain technology. Each type of Token exists on a specific blockchain for recording and verifying transactions.
Tokenization: Tokens can represent ownership of physical assets or rights, converting these assets into digital forms through tokenization.
Consensus Mechanism: Tokens use consensus algorithms to ensure the security and consistency of the network. Consensus algorithms can be categorized into types such as machine consensus, governance consensus, and market consensus.
Stability: Although Tokens have substantial price volatility, stablecoins (a type of Token pegged to fiat currency) are designed to provide a more stable store of value and medium of exchange.
In summary, Tokens are a type of digital asset based on blockchain technology, characterized by decentralization, security, and diverse application scenarios.