# Token(s) 1. A token is a programmable digital asset with its own codebase that resides on an already existing [[Blockchain|blockchain]]. Tokens are used to help facilitate the creation of decentralized applications. Synonyms: Token Not To Be Confused With: [[Bitcoin (blockchain)]]'s 2. A [[crypto]] token is a [[blockchain]]-based unit of value that organizations or projects can customize and develop for use within existing blockchain ecosystems. Crypto tokens can be programmable, transparent, [[Permisionless|permissionless]], and trustless. They can also serve many functions on the platforms for which they are built, including being used as collateral in [[Decentralized Finance (DeFi)]] applications, accessing platform-specific services, voting on DeFi protocols and even taking part in games. 4. Tokens are a digital identity for something that can be owned, created as [[Smart Contract|smart contracts]] with complex permission systems and interaction paths. Smart contracts can be understood as software agents, which can act autonomously within a scope of a given network according to predefined rule sets. If the governance rules around issuance and management of a token are sufficiently complex regarding how they coordinate a group of stakeholders, token [[Smart Contract]] may be understood as organizations sui generis. 4. The means of exchange to give value to a [[Transaction(s)|transaction]]; typically a native [[Crypto (cryptocurrency)|cryptocurrency]]. Some non-currency [[Blockchain|blockchain]] architectures can be tokenless. 5. Is a digital asset that is issued for the purpose of attracting investment into a [[Crypto (cryptocurrency)|cryptocurrency]] project or a company. It is close to a stock or a bond by its properties. They are produced during [[Initial Coin Offering (ICO)]]. 6. Representation of a digital asset built on an existing [[Blockchain]]. 7. In the context of [[Blockchain|Blockchains]], a token is a [[Digital Identity|digital identity]] for something that can be owned. Historically, tokens started as meta information encoded in simple Bitcoin [[Transaction(s)|transactions]], thereby taking advantage of the [[Bitcoin (blockchain)]] blockchain’s strong [[Immutable|immutability]]. At a protocol layer, tokens were outsourced extensions to Bitcoin’s core protocol. Instead of being integrated as a feature on a software level, those tokens were created by misappropriating data fields in Bitcoin transactions (such as encoding data in the amount or [[op\_return]] field). Today, modern [[Token(s)|tokens]] are created as sophisticated [[Smart Contract]] systems with complex permission systems and interaction paths attached. Smart contracts can be understood as software agents, which act deterministically and autonomously, within the scope of a given network, according to a predefined rule set. If the governance rules around issuance and management of a token are sufficiently complex regarding how they coordinate a group of stakeholders, token smart contracts may be understood as organizations sui generis. The management rules may reflect those of known legal, organizational entities such as stock corporations, but they do not have to. 9. A unit of value for a [[Blockchain|blockchain]] system. Tokens can be used for payment, access, voting, and facilitating the overall blockchain infrastructure. Most tokens are based on [[Ethereum (blockchain)]]. 9. [[Digital Identity|Digital identity]] for something that can be owned. 10. Refers to the ‘currency’ of projects built on top of another [[Blockchain|blockchain]], such as [[Ethereum (blockchain)]] or Waves. They have raised money via issuing their own tokens or having an [[Initial Coin Offering (ICO)]]. Tokens often represent some utility, resource, or asset value, and are often used in [[Decentralized Applications (dApp)|dApps]]. [[ERC 20|ERC 20]] Tokens are the most frequently heard of ‘tokens,’ and are specific to tokens following a protocol on the Ethereum network. Some common tokens include [[Golem (GNT)]], [[Augur (REP)]], [[Basic Attention Token (BAT)]], [[Iconomi (ICN)]], etc. (Read about some ERC20 Tokens here.) 11. Crypto tokens enable the creation of open, [[Decentralized|decentralized networks]], and provides a way to incentivize participants in the network (with both network growth and token appreciation). This innovation, made popular with the introduction of [[Ethereum (blockchain)]], has given rise to a wave of token networks (e.g. prediction markets, content creation networks, etc.) and token pre-sales, or [[Initial Coin Offering (ICO)]]. 12. Tokens are a type of digital asset that can be tracked or transferred on a [[Blockchain|blockchain]]. tokens are often used as a digital representation of assets like commodities, stocks and even physical products. tokens are also used to incentivise actors in maintaining and securing blockchain networks.