Definition of token

In the world of cryptocurrency, the token is a characterization or representation of digital commodities or assets used in a distributed blockchain-based network. These are commonly provided by cryptocurrencies like ethereum, bitcoin, etc.

Brief Explanation of token

This is quite similar to a common coin but is built on a different platform of the digitized world. Therefore, it plays a significant role in the networks or organizations that have issued this kind of a particular cryptocurrency.

The most popular examples of this cryptocurrency token are “Ether,” a token provided by ethereum, which is the main element in running this distributed blockchain-based platform.

It is one of the forms of payment that can be transferred from one node to another for operating this distributed computing platform. Moreover, it has been transferred between different accounts. The purpose of transferring these tokens is to compensate recipient nodes.

This token is in a physical form like security. It also has some limitations, as all other digital currencies have. However, ether has a comparatively lower limitation than a bitcoin.