Token Definition & Meaning

In this context, each token represents a specific amount of money. Non-fungible tokens are unique, digital representations of assets living on a blockchain. As the world explores how distributed, immutable ledgers can make transacting safer and faster, NFTs play a critical part in the process. These assets have their transaction history preserved, have the potential to streamline trade, and are a cornerstone in the emerging digital world. The most exciting possibility for NFTs lies in the creation of new markets and forms of investment.

It is much easier to divide a digital real estate asset among multiple owners than a physical one. That tokenization ethic need not be constrained to real estate; it can extend to other assets, such as artwork. Its digital equivalent can have multiple owners, each responsible for a fraction of the painting. Some common synonyms of token are mark, note, sign, and symptom.

Each hewer sends one of these with each corf or tub he has hewn.1864 August 6, «Miners and Their Grievances», The Spectator, vol. Like the fearful tokens of the plague, Are mere fore-runners of their ends. A characteristic sign of a disease or of a bodily disorder, a symptom; a sign of a bodily condition, recovery, or health. Something given or shown as a symbol or guarantee of authority or right; a sign of authenticity, of power, good faith. A member of a group of people that is included within a larger group to comply with a legal or social requirement. Please accept this bustier as a token of our time together.

Security tokens and utility tokens are not very useful outside their token ecosystems. Non-fungible tokens, which use blockchain technology just like cryptocurrency, are generally secure. The distributed nature of blockchains makes NFTs difficult to hack. One security risk for NFTs is that you could lose access to your non-fungible token if the platform hosting the NFT goes out of business. NFTs can also democratize investing by fractionalizing physical assets like real estate.

token meaning

Symbolic of something, especially of gratitude; as a memento of something. This is due to the fact that blockchains, unlike traditional stock markets, are not closed. Consequently, trading is faster than on the regular financial market.

They can reflect a participant’s account balance, e.g. how much BTC or ETH they currently own. They are used to simplify Bitcoin transactions, e.g. payments. Ethereum is a blockchain-based software platform with the native coin, ether.

token

More examples He lives with his parents and pays them a token rent of £50 a month. When just one woman is on a company’s board she may be dismissed as the token female. The truth is that they appoint no more than a token number of women to managerial what is owl token jobs. More examples A sample of language cannot contain more distinct words than the total words it contains . This is a secure encryption device for digital token generation. A piece of software that serves as proof of the user’s identity.

  • Unlike coins, which are used outside an ecosystem – for example as a means of payment – and are the original product of their platform, tokens are only used within an ecosystem.
  • While all these words mean «a discernible indication of what is not itself directly perceptible,» token applies to something that serves as a proof of something intangible.
  • Perhaps the most famous use case for NFTs is that of cryptokitties.
  • Fungibility is an economics term that describes the interchangeability of certain goods.

Tokens, of which there are already many, instead run on the existing blockchains of other cryptocurrencies. Now that we know more about the meaning and definition of tokens in cryptocurrencies, let’s take a closer look. Tokens, which act as a means of payment or cash, are by their definition a special kind. Whereas those such as Bitcoin, ADA and Ether are used exclusively for financial transactions.

More meanings of token

They are also extensible, meaning you can combine one NFT with another to “breed” a third, unique NFT. However, because of blockchain’s ability to store and publicly communicate transaction history, not every token or coin of a given cryptocurrency is the same. For example, people may pay a premium for owning a bitcoin that was previously owned by Elon Musk or a coin that had never been traded before. Similar to how a 1944 U.S. steel wheat penny is only worth $0.01, collectors are willing to pay much more for something unique.

However, there is still disagreement in the United States about the proper classification of utility tokens. According to Jay Clayton, Chairman of the Securities and Exchange Commission, all tokens generated via ICOs are securities. As a rule, tokens are not used as a global payment method like the more popular cryptocurrencies. Instead, they are used as a kind of internal currency on platforms, in companies and organisations. The topic of cryptocurrency has been omnipresent for years. If you deal with blockchain, smart contracts or virtual money systems, you will certainly also come across the term token.

When we receive the transaction securely, we tokenize it and send back a token to the merchant so they never have to see a card number for settlement. More examples The tokens can be swapped for T shirts, key rings, and other prizes. First they had to queue up to receive a small plastic token, which they could then exchange for food.

The valuation of OpenSea, a nonfungible token marketplace, soared by over 100 times to $13 billion in January 2022, ten months after Andreessen led an early funding round. Having been in a university environment that was incredibly hostile to women, coming here seems like heaven. In the university, there was only one in the department, and she was very token.

Translations of token

While the synonyms sign and token are close in meaning, sign applies to any indication to be perceived by the senses or the reason. The words note and token can be used in similar contexts, but note suggests a distinguishing mark or characteristic. A conceptual object that can be possessed by a computer, process, etc. in order to regulate a turn-taking system such as a token ring network. An atomic piece of data, such as a word, for which a meaning may be inferred during parsing. As a sign or symbol of, as in He gave her a ring in token of his love, or In token of our esteem, we dedicate this hospital wing to Dr. Lurie. Since cryptocurrencies use blockchain technology, every user risks hacker attacks, programming and software errors, manipulation, data theft, etc.

token meaning

The company was bought by the government for a token 1p a share. Types are the distinct words in a text, whereas tokens are all the words, including repeats. The participants produced 1,564 linguistic tokens, of which 1,021 (65%) were marked for plural. More examples The system then automatically generates an authentication token and includes the token in the outbound transaction.

token adjective [always before noun]

Because of the way security tokens are structured as blockchain assets, investors can trade them with each other. While all exchanges, whether public or private, must abide by certain rules, security tokens have the advantage of being able to be exchanged at any time of the day or night. Non-fungible tokens are an evolution of the relatively simple concept of cryptocurrencies. Modern finance systems consist of sophisticated trading and loan systems for different asset types, ranging from real estate to lending contracts to artwork.

With these tokens, only one specific benefit is granted at a time. Siacoin, for example, offers decentralised cloud storage. EOS is an example of an ICO token that has made it into the altcoin space. For a long time, EOS was a virtual token on the Ethereum network. A stamped piece of metal, issued as a limited medium of exchange, as for bus fares, at a nominal value much greater than its commodity value. Fungibility is an economics term that describes the interchangeability of certain goods.

What is a token?

NFTs can also function to represent individuals’ identities, property rights, and more. «Tokenizing» these real-world tangible assets makes buying, selling, and trading them more efficient while reducing the probability of fraud. A learning experience platform is an AI-driven peer learning experience platform delivered using software https://cryptolisting.org/ as a service (… Certified Information Systems Security Professional is an information security certification developed by the … Network availability is the amount of uptime in a network system over a specific time interval. Data center interconnect technology links two or more data centers together to share resources.

A programming token is the basic component of source code. Characters are categorized as one of five classes of tokens that describe their functions in accordance with the rules of the programming language. He sits on the internet all day and asks everyone for help. A person in a television programme who is there simply to please people of his or her particular ethnicity. Whether you’re a teacher or a learner, Vocabulary.com can put you or your class on the path to systematic vocabulary improvement.

The institutionalisation of the crypto market is a popular topic of conversation. This is because large financial institutions such as asset managers and banks have largely shunned the emerging market for digital assets. Security tokens could be crucial in building bridges in the future. In most cases, companies use utility tokens to offer purpose-built services.

Cross-chain bridge is a term for software that enables the transfer of cryptocurrency or blockchain assets between blockchain networks. A blockchain is a digitally distributed, decentralized, public ledger that exists across a network. It is most noteworthy in its use with cryptocurrencies and NFTs. Though the cryptokitties and Bored Ape Yacht Club use cases may sound trivial, others have more serious business implications. For example, NFTs have been used in private equity transactions as well as real estate deals.

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