A token is a physical or digital object that has value in a certain context or for a certain community, even though its own materiality does not contain that value itself.

Casino chips, for example, are just pieces of plastic in different colors, but they represent amounts of money. Some, up to millions of dollars, although manufacturing one of them costs just pennies.

That is what tokens do: they represent something else, they are in their place. Why? There are many reasons: comfort, safety, ease of transport or transfer.

In the crypto world, tokens are generated from pieces of programming code, in the form of smart contracts that run on the blockchain. These “smart contracts” are pieces of computer code that determine the rules or operation of a crypto tool or platform.

On the other hand, token creation makes it possible for you to digitize your transactions through the implementation of tokens. To which we can assign any value of real and virtual life. This tokenization is on its way to becoming a global standard.

In addition to being at the forefront when using tokens, it also allows users to be encouraged to participate more actively in Decentralized Finance or DeFi projects.

A token works as an investment vehicle, to exchange tokens within a platform such as Ethereum, shares of a company, property, ticket or for the use of a DApp or Decentralized Applications.

The best blockchains to create tokens are: Ethereum and Solana are the most popular blockchains for token development.

The ERC-20 token remains the market leader to create them and is the main option to carry out an ICO or crowdfunding.

Ethereum remains at the forefront of DeFi or Decentralized Finance and has extensive documentation for those who want to take their first steps.

The difference between tokens and coins: they have similarities in representing value and enabling payment processing: coins can be exchanged for tokens and vice versa.

The difference is its utility. Most cryptocurrencies typically function as a native currency on the blockchain as a store of value, while tokens typically exist for use in a DApp. Since tokens are created on existing blockchains, many project tokens can exist within the same ecosystem, most of which can be migrated as needs change.

To create a currency it is necessary to create or copy an entire blockchain. While for the development of tokens only a smart contract is necessary. Thanks to this, to create a new token it is not necessary to create a blockchain and you can ensure yourself by choosing the most suitable and secure chain of blocks for your project.