{"id":9471,"date":"2023-02-20T19:07:07","date_gmt":"2023-02-20T19:07:07","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=9471"},"modified":"2025-09-10T15:24:24","modified_gmt":"2025-09-10T15:24:24","slug":"what-is-a-token","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-token","title":{"rendered":"What is a Blockchain Token? Intro to Cryptographic Tokens"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-token\/#what_is_a_token_and_the_difference_between_cryptocurrency_coins_and_tokens\" >What is a token and the difference between cryptocurrency coins and tokens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-token\/#what_is_a_token\" >What is a token?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-token\/#1-_security_tokens\" >1.- Security Tokens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-token\/#2-_utility_tokens\" >2.- Utility Tokens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-token\/#3-_equity_token\" >3.- Equity Token<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-token\/#what_is_the_difference_between_tokens_cryptocurrencies\" >What is the difference between Tokens &amp; cryptocurrencies?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-token\/#similarities\" >Similarities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-token\/#differences\" >Differences:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><div id=\"row-1606715157\" class=\"row row-collapse row-full-width align-equal align-center\">\n<div class=\"col small-12 large-12\">\n<div class=\"col-inner\">\n<h2><span class=\"ez-toc-section\" id=\"what_is_a_token_and_the_difference_between_cryptocurrency_coins_and_tokens\"><\/span><b>What is a token and the difference between cryptocurrency coins and tokens<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Is the token a crypto?, What is a token and what is it for?\u2026\u00a0<b>Tokens arrived long before the Internet<\/b>, only now its use has expanded towards a more revolutionary conception and the new definition causes some confusion. Now we explain to you<b>\u00a0what a token is<\/b>, what it is for and the\u00a0<b>difference between token and crypto<\/b>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div><\/div>\n<div id=\"row-1606715157\" class=\"row row-collapse row-full-width align-equal align-center\">\n<div class=\"col small-12 large-12\">\n<div class=\"col-inner\">\n<h2><span class=\"ez-toc-section\" id=\"what_is_a_token\"><\/span><b>What is a token?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the world of blockchain technology, a token is a unit of value issued by an organization. Tokens are the representation of a financial value or digital asset.<\/p>\n<p>The tokens can represent from currencies (crypto), to any fungible or negotiable assets.<\/p>\n<p><b>Is not a new concept<\/b><\/p>\n<p>In a broad sense, the token is an object with a given value only within a context. An example are the casino chips. These chips are pieces of plastic that are not worth anything outside the casino walls, in this context it is precisely where their value is agreed and they end up being the representation of something.<\/p>\n<p>So, historically tokens have been objects used as coins with value within a given environment. Another example can be found in music festivals, the vast majority of festivals work only with their own token with value within the precincts.<\/p>\n<p>Therefore, the\u00a0<b>value of a token<\/b>\u00a0is which its creator decides.<\/p>\n<p><b>Blockchain technology<\/b><\/p>\n<p>The special feature of tokens is that they are based on a third-party blockchain; required from a blockchain -not own- to work. In addition, tokens allow designers to decide their object, content and consequences.<\/p>\n<p>The most common means for creating tokens is the Ethereum platform, from which smart contracts are executed. On this decentralized platform, developers design their applications or contracts on a personalized blockchain.<\/p>\n<p>In the Ethereum ecosystem, tokens are known as ERC-20; It is one of the most used tokens in the crypto world.<\/p>\n<p>However, is possible to make a type\u2013token distinction since their differences are very noticeable among them:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1-_security_tokens\"><\/span>1.- Security Tokens<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Security tokens are essentially digital, liquid contracts for fractions of any asset that already has value, like real estate, a car, or corporate stock.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-_utility_tokens\"><\/span>2.- Utility Tokens<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Those who don\u2019t generate expectations of obtaining economic benefits. Oriented to offer a concrete utility in a platform or application, which gives rights to the use of certain products or services.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-_equity_token\"><\/span>3.- Equity Token<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An equity token is a type of security token that functions as a traditional share, in either the underlying company, third-party asset or venture and takes its value from the company\u2019s success or failure.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div><\/div>\n<div id=\"row-1606715157\" class=\"row row-collapse row-full-width align-equal align-center\">\n<div class=\"col small-12 large-12\">\n<div class=\"col-inner\">\n<h2><span class=\"ez-toc-section\" id=\"what_is_the_difference_between_tokens_cryptocurrencies\"><\/span><b>What is the difference between Tokens &amp; cryptocurrencies?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once the question about what is a token is resolved, it is important to clarify the following -and also important- question:\u00a0<b>What is the difference between tokens and cryptos?<\/b><\/p>\n<p>We summarize it by highlighting differences and similarities.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"row-1527890829\" class=\"row\">\n<div class=\"col medium-7 small-12 large-7\">\n<div class=\"col-inner\">\n<div id=\"image_1572158291\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/03\/Cryptocurrencies-and-tokens-differences.jpg\" sizes=\"(max-width: 700px) 100vw, 700px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/03\/Cryptocurrencies-and-tokens-differences.jpg 700w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/03\/Cryptocurrencies-and-tokens-differences-300x225.jpg 300w\" alt=\"Difference cryptocurrency and token explanation Bitnovo\" width=\"700\" height=\"525\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/03\/Cryptocurrencies-and-tokens-differences.jpg 700w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/03\/Cryptocurrencies-and-tokens-differences-300x225.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/03\/Cryptocurrencies-and-tokens-differences.jpg\" data-sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"col medium-5 small-12 large-5\">\n<div class=\"col-inner\">\n<h3><span class=\"ez-toc-section\" id=\"similarities\"><\/span>Similarities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Both are units of value, accepted by a community.<\/li>\n<li>Both are part of a blockchain.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"differences\"><\/span>Differences:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Cryptocurrencies work with their own independent blockchain. In addition, they can be mined.<\/li>\n<li>Tokens are created on existing blockchains and are not mineable.<br \/>\nIn addition, tokens can be used for a multitude of issues since they can represent all kinds of assets.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<p>To recap: the main\u00a0<strong>difference between tokens and cryptocurrencies<\/strong>\u00a0is that tokens, as a unit of value, is a concept that can cover cryptocurrencies (as payment tokens); but not vice versa.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>What is a token and the difference between cryptocurrency coins and tokens Is the token a crypto?, What is a token and what is it for?\u2026\u00a0Tokens arrived long before the Internet, only now its use has expanded towards a more revolutionary conception and the new definition causes some confusion. Now we explain to you\u00a0what a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7276,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[185],"tags":[],"class_list":["post-9471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-en"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/9471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=9471"}],"version-history":[{"count":2,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/9471\/revisions"}],"predecessor-version":[{"id":24737,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/9471\/revisions\/24737"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7276"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=9471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=9471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=9471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}