A token is like a digital token that you can use on the internet. It works within a blockchain and can represent many things: money, reward points, video game items, tickets to events, company shares or even voting rights. You can send, receive or exchange it as if it were digital money, but with many more possible functions.

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Un Token is a programmable digital unit that is issued, managed and transferred over a blockchain, usually through Smart Contracts. Unlike a native cryptocurrency such as ETH or BTC, tokens are not part of the blockchain's base protocol, but are created on top of it using technical standards like ERC-20 (expendable), ERC-721 (non-expendable) or ERC-1155 (multifunctional). Tokens can represent both expendable assets, such as coins, stablecoins or loyalty points, such as non-expendable assets, such as digital works of art, properties or identities.

These digital assets can have multiple purposes: to act as financial instruments, Means of exchange, access rights, rewards within platforms, or as part of decentralized governance models in DAOs. Its behavior is governed by functions programmed in the smart contract: emission (Mint), burns (Burn), transfer (Transfer), permissions (Approve), supply limits, and others.

Tokens can also be classified by their legal or functional nature: utility tokens, Security Tokens, Governance Tokens, Stablecoins, Soulbound Tokens (SBTs), etc. This multipurpose character has made tokens a central piece of the Web3 ecosystem, since they allow us to represent value, identity, property or rights in a traceable, immutable way and without the need for intermediaries. In addition, they can be integrated with mechanisms of Tokenomics, encouraging the use and participation in decentralized platforms. Its use is increasingly linked to Real World Assets tokenization processes, decentralized financial services (DeFi), NFTs, blockchain video games and digital reputation systems.

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