Token?

A token is a digital unit that represents a value or asset on a blockchain. Unlike coins, which operate on their own blockchain, tokens are created on existing blockchains like Ethereum. They are essential in the blockchain ecosystem for various applications, ranging from finance to digital rights management.

Types of Tokens

• Utility Tokens: These tokens offer access to specific services or products on a platform. For example, they can be used to pay transaction fees or access premium features of a decentralized application. NAEST Token is a Utility Token.

• Security Tokens: They represent shares in an underlying asset, such as company stocks. Their value is tied to the asset they represent, and they are often subject to strict financial regulations.

• Asset-Backed Tokens: These tokens are backed by real physical assets, such as gold or real estate. They allow for the digitization of ownership of these assets and easy exchange on a blockchain.

• Non-Fungible Tokens (NFTs): Unlike fungible tokens, each NFT is unique and cannot be exchanged for an identical one. They are often used to represent ownership of digital artworks or other collectibles.

Tokens play a crucial role in enabling the digitization and secure exchange of values in a decentralized environment, thus facilitating a multitude of innovative applications in Web3.