What are tokens?

There are different types of tokens, such as security tokens, which represent shares or financial securities; utility tokens, which provide access to a particular service or product; and payment tokens, which can be used as a means of payment in commercial transactions.

Tokens are created through smart contracts and are stored in cryptographic wallets. They have unique characteristics such as the total supply, the number of tokens in circulation, and the current price. The token market is highly dynamic and can experience significant price fluctuations in short periods of time.

In summary, tokens are a way to represent value in blockchain technologies and are used for a variety of purposes. They can be created and managed through smart contracts and are stored in cryptographic wallets.

Tokens can represent specific assets or utilities, such as rewards for users, access to services or products, votes on community decisions, among others. There are different types of tokens, including security tokens representing shares or financial securities; utility tokens providing access to a particular service or product; and payment tokens that can be used as a means of payment in commercial transactions.

Asset Tokenization

In addition to the aforementioned token types, another significant application of tokens is asset tokenization. This involves representing physical assets, such as real estate, artwork, or commodities, in the form of digital tokens on a blockchain.

Asset tokenization enables the division of ownership rights and the representation of fractional ownership, allowing for increased liquidity and accessibility to traditionally illiquid assets. It opens up new possibilities for investment, trading, and democratization of asset ownership.