Token: what is it and what is it for?

You have probably heard about tokens lately, especially in relation to cryptocurrencies, the blockchain and the metaverse. But what exactly are they, and what are they for? We are already surrounded by tokens in our daily lives, even if we are not aware of it. Núria Rambla, 11Onze’s executive assistant, gives us all the clues.

 

“A token is a symbol, a code. Tokens are objects similar to a coin, but they are not legal tender,” Rambla explains. This means that they only have value within the market where it has been established that they will be used and only for the purpose for which they have been created. Tokens have been around for many years and the clearest example is casino or fairground tokens, those plastic coins that can only be used to play slot machines or poker or to ride the witch train or bumper cars.

And what characterises tokens? They have no value, they are issued by institutions or private companies, they are made of low-value materials, they have a control system and they are secure and cannot be counterfeited,” the executive assistant says. In the digital world, tokens use the infrastructure of cryptocurrencies, the so-called blockchain, to circulate. We could say, in fact, that a cryptocurrency is a token, even though a token is not a cryptocurrency at all.

“While a cryptocurrency has its own blockchain, a token always takes advantage of an existing blockchain, which is why it is cheaper for digital platforms,” Rambla argues.

In the virtual world, tokens have infinite applications: they can serve as security codes that are validated when we enter a website, as exchangeable points in video games, as miles travelled by airlines… In the world of finance, they are also used in so-called tokenization, that is, to protect our data when we make online payments, using a code that validates the transaction with total security. And in terms of investments, there are security tokens. Want to know more about tokens? Just watch the video below!

11Onze is the fintech community of Catalonia. Open an account by downloading the super app El Canut on Android and Apple and join the revolution!

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  1. Joan LlacunaJoan Llacuna says:
    Joan

    Gràcies Núria, una explicació ben entenedora.
    Com dius, abans d’invertir en cap projecte cal informar-se mínimament del que hi ha al darrera.

    • Núria Rambla VilamitjanaNúria Rambla Vilamitjana says:
      Núria

      Com dic en el vídeo amb el tema dels ICO s’hi han fet negocis molt bons però també molt dolents. Per això és bo conèixer qui hi ha el darrera dels projectes. Moltes gràcies Joan!!

      6 months ago
  2. Daniela SimónDaniela Simón says:
  3. Laura León AmatLaura León Amat says:
    Laura

    Quona maravella d’explicació!! Anem aclarint conceptes. Siii, volem un altre video d’aquesta temàtica

  4. Pere SorianoPere Soriano says:
    Pere

    Bona introducció. Però com bé diu cal molt de temps per aprendre tot el que envolta el món de els blockchain.

    • Núria Rambla VilamitjanaNúria Rambla Vilamitjana says:
      Núria

      De mica en mica… no ens n’adonarem i estarem immersos en aquest món. Gràcies

      6 months ago
    • Jordi CollJordi Coll says:
      Jordi

      Molt cert, a més a més és un tema poc conegut. Moltes gràcies pel teu comentari, Pere!!!

      7 months ago
  5. Josep RuaixJosep Ruaix says:
  6. alicia Coiduras Charlesalicia Coiduras Charles says:
    alicia

    Gràcies Nuria molt ben explicat

  7. Ricard Calvo VilanovaRicard Calvo Vilanova says:
    • Pilar Oltra ViguerasPilar Oltra Vigueras says:
      Pilar

      La Núria ho fa planer per tal que sigui fàcil entendre-ho, la veritat. Gràcies, Ricard.

      7 months ago
  8. Manuel Bullich BuenoManuel Bullich Bueno says:
    Manel

    Molt ben explicat.
    Gràcies

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