Token
A digital asset issued on top of an existing blockchain, usually through a smart contract rather than its own network.
A token lives on a host chain instead of running its own. Most tokens follow Ethereum's ERC-20 standard, but the model exists on Solana, BNB Chain, and elsewhere. The smart contract that defines a token tracks who owns what and enforces the rules for every transfer.
Tokens span everything from stablecoins to tokenized stocks. The distinction from a 'coin' matters. A coin like BTC or ETH is native to its chain and usually pays the fees. A token rides on that chain and pays fees in the coin. USDC is a token; the ETH it moves on is a coin.
Related terms
The native asset of its own blockchain, used to pay fees and secure the network, unlike a token built on top.
ERC-20The Ethereum standard that defines how fungible tokens behave, letting wallets and apps support them uniformly.
StablecoinA crypto token designed to hold a steady value, almost always pegged one-to-one with the US dollar.
Smart ContractSelf-executing code on a blockchain that runs exactly as written when its conditions are met, with no party able to intervene.