🪙What is a Token?

🪙 What is a Token?

A token is a digital asset created on top of a blockchain. While a coin (like Bitcoin) runs on its own blockchain, a token lives inside another blockchain — like a guest at a party.

🧠 Quick Example

• ETH = Native coin of the Ethereum blockchain

• USDT, UNI, SHIBA = Tokens built on Ethereum

🪙 So: All coins are tokens, but not all tokens are coins!

🧩 What Can Tokens Do?

Tokens can represent:

• Currency 💸 (like stablecoins: USDT, USDC)

• Utility 🛠 (access to a product or service — like Mandalyze AI!)

• Governance 🗳 (voting rights in a DAO)

• NFTs 🎨 (unique digital assets)

🔍 Types of Tokens

Type	What It Does	Example
Utility	Gives access to a platform or feature	$MANI (Mandalyze AI)
Governance	Lets users vote on proposals	$UNI (Uniswap)
Security	Represents ownership or shares	Tokenized stocks
Stablecoin	Pegged to fiat like USD	USDC, USDT
NFT	Unique and non-replaceable	Bored Apes, etc.

⚙️ How Are Tokens Created?

Most tokens are created using smart contracts.

On Ethereum → tokens follow the ERC-20 standard. On Solana → tokens follow the SPL standard.

You don’t need to build a whole blockchain — just deploy a smart contract on an existing one!

🧪 In Summary

Tokens are flexible building blocks of the Web3 world. Whether it’s money, voting, or art — tokens make it possible.

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🧭 Next Lesson: Coin vs Token – What’s the Difference?