Token: what is it and what is it for?

You’ve probably heard a lot about tokens lately, especially in connection with cryptocurrencies, the blockchain, and the metaverse. But what exactly are they? What are they for? We are already surrounded by tokens in our daily lives, although we are not sufficiently aware of it. Núria Rambla, executive assistant at 11Onze, gives us all the clues.

 

‘A token is a token, a symbol, a code. Tokens are objects similar to a currency, but 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,’ says the executive assistant. 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, although a token is not exactly a cryptocurrency.

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

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

11Onze is the community fintech of Catalonia. Open an account by downloading the app El Canut for Android or iOS and join the revolution!

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Equip Editorial Equip Editorial
  1. Joan Santacruz CarlúsJoan Santacruz Carlús says:
  2. 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 Vilamitjana says:

      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!!

      3 years ago
  3. Daniela SimónDaniela Simón says:
  4. Laura León AmatLaura León Amat says:
    Laura

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

  5. 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 Vilamitjana says:

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

      3 years ago
    • Jordi CollJordi Coll says:
      Jordi

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

      3 years ago
  6. Josep RuaixJosep Ruaix says:
  7. alicia Coiduras Charlesalicia Coiduras Charles says:
    Alicia

    Gràcies Nuria molt ben explicat

  8. Ricard Calvo VilanovaRicard Calvo Vilanova says:
    • Pilar Oltra Vigueras says:

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

      3 years ago
  9. Manuel Bullich BuenoManuel Bullich Bueno says:
    Manel

    Molt ben explicat.
    Gràcies

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