Tokens can be described as digital units of value representing specific assets or utilities that rely on existing blockchain technology.
In a tokenization, an asset or contract is linked to a digital representation – the token – on a blockchain. A (blockchain) token is thus a digital asset that represents an object of ownership. The ownership of tokens is regulated via a blockchain.
There are different types of tokens for different application purposes. The most common are security tokens, utility tokens, non-fungible tokens and payment tokens. In addition, there are a number of other tokens, such as social tokens or ERC tokens.