What are Ethereum Tokens?
Ethereum tokens are smart contracts created and utilized on the Ethereum blockchain platform. Each token has its own functionality and characteristics based on its planned usage. They can be created to represent both digital as well as physical objects.
Ethereum-based tokens can be easily combined and used with other dApps built on the Ethereum blockchain and/or DeFi protocols. Although many token contracts are based on the ERC-20 standard, the Ethereum blockchain platform has one native token, the Ether or ETH.
There are different types of tokens that can be built on the Ethereum network. In terms of what they represent and the ERC standard they are built upon, Ethereum tokens can be fungible or non-fungible tokens. Moreover, some major types of tokens are transactional, governance, utility, and liquidity provider tokens. Tokens can also be classified as currency tokens, resource tokens, asset tokens, voting tokens, equity tokens, access tokens, etc.