Token

Tokens, generally talking, are non-mineable digital units of value that exist as library passages in blockchains.
Tokens come in various forms - they can be utilized as currencies for specific ecosystems or encode unique data (see A Guide to Crypto Collectibles and Non-Fungible Tokens). Furthermore, a few tokens may be redeemable for off-chain assets (i.e., gold, property, stocks).
Tokens are generally issued by companies utilizing existing third-party blockchains, for example, the Ethereum blockchain, as exemplified by the numerous ERC-20 tokens that were issued and sold through ICOs in 2017. Rigorously talking, tokens are not cryptocurrencies like Bitcoin or ether, yet transferable units of value issued on top of a blockchain.
There are different token classifications in light of the different qualities of the tokens. The primary classification utilizes functionality to separate tokens into utility tokens and security tokens. Utility tokens generally address access to a service or can function as a medium of exchange inside an ecosystem.
An illustration of a utility token is BNB, which acts principally as a discount token to pay for trading fees on the Binance exchange. Nonetheless, it can likewise be utilized to pay for goods and services.
Security tokens, then again, address financial assets. For example, a company could issue tokenized shares during an ICO, giving the holder ownership rights and dividends. From a legal viewpoint, these would be indistinguishable from customarily disseminated shares.
Another classification surveys elements to recognize fungible and non-fungible tokens. In the event that you take a dollar bill and swap it with another dollar bill, you keep a similar value. It has no effect what unit you hold, as they fill a similar need. On the flip side, you can't take a unique piece of art and supplant it with an alternate piece of art.
A similar principle holds for tokens. Accepting BNB as an illustration once more, it doesn't make any difference which specific units you own. They're interchangeable. Something like a CryptoKitty, nonetheless, has unique properties, and every unit must be dealt with in an unexpected way.