TokenFi Price

Introduction to Tokens

1. What is a Token?

A token is a type of digital asset that represents specific rights, credentials, or other forms of value, which can be traded, transferred, exchanged, and so on on the corresponding blockchain.

2. The difference between Token and Coin

• Token: Does not have its own native blockchain and is usually issued on other public chains, such as ERC-20 tokens on Ethereum.
• Coin: Has its own native blockchain, such as Bitcoin, Ethereum, etc.

3. Types of Tokens

According to the classification by the Swiss Financial Market Supervisory Authority (FINMA), tokens can be divided into three categories:

• Payment Tokens: Primarily used for secure, efficient, and low-fee payments, such as stablecoins USDT, USDC, etc.
• Utility Tokens: Serve as access passes for various applications, like ERC-20 tokens on Ethereum.
• Asset Tokens: Represent ownership or value in a project, such as tokens from certain projects.

4. Applications of Tokens

Tokens can be used in various scenarios, such as payments, smart futures, distributed computing, data storage, etc.

5. Security of Tokens

The security of tokens depends on the blockchain they are based on and the design of the smart futures.

In summary, tokens are a type of digital asset with various types and applications, and their security and value depend on their design and usage.