Blockchain technology has revolutionized the way digital assets are created, managed, and exchanged. At the heart of this transformation lies a fundamental concept: the token—commonly referred to as a "通證" (token or access token) in Chinese. This guide dives into what blockchain tokens are, how they function across different standards, and their significance in decentralized ecosystems.
Tokens on blockchains like Ethereum are not just digital coins—they represent a broad category of programmable assets with customizable properties. Whether it's a utility token for accessing services or a non-fungible token (NFT) representing unique digital art, all are built using standardized smart contract frameworks.
What Is a Blockchain Token?
A blockchain token is a digital asset issued on an existing blockchain through a smart contract. Unlike native cryptocurrencies such as Ether (ETH), which power the Ethereum network itself, tokens are created on top of the blockchain by deploying code that defines their behavior, supply, and ownership rules.
In Ethereum’s ecosystem, creating a token involves:
- Paying gas fees in ETH
- Deploying a smart contract that follows a specific technical standard
- Registering the contract address on the blockchain
- Defining attributes such as name, symbol, total supply, and transfer logic
Once deployed, these assets are universally recognized within the network as Tokens, or in Chinese, 通證—a term emphasizing both access rights and value representation.
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The Origin of "Token": From Web2 to Web3
The concept of a "token" predates blockchain. In traditional web systems (Web2), platforms like Facebook use Access Tokens to manage user permissions. When a third-party app requests access to your profile data, you grant consent—and the system issues a temporary token, usually a string of alphanumeric characters, allowing limited interaction without exposing your password.
This model ensures secure, scoped access. Blockchain takes this idea further by making tokens permanent, transparent, and transferable without centralized control.
For example:
- A Facebook access token lets an app read your public profile for one week.
- An Ethereum-based token can represent ownership of digital art forever—and be freely traded across global markets.
Thus, while both systems use "tokens," blockchain tokens introduce ownership, scarcity, and interoperability at a foundational level.
Major Token Standards on Ethereum
Ethereum supports multiple token standards, each designed for specific use cases. These standards define how tokens behave and interact with wallets, exchanges, and dApps.
ERC-20: The Standard for Fungible Tokens
ERC-20 is the most widely adopted token standard for fungible assets—meaning each unit is identical and interchangeable, like dollars or shares.
Key features:
- Uniform balance tracking
- Transfer functions
- Event logging for transactions
- Integration with virtually all wallets and exchanges
An example is the SELF TOKEN, an ERC-20 compliant asset with:
- Name: SELF TOKEN
- Symbol: SELF
- Total Supply: 200,000,000
- Contract Address:
0x67ab11058ef23d0a19178f61a050d3c38f81ae21
This token could represent governance rights in a decentralized community or serve as a reward within a social platform.
ERC-721: The Foundation of NFTs
Unlike ERC-20, ERC-721 enables non-fungible tokens (NFTs)—each token is unique and indivisible. This standard powers digital collectibles, virtual real estate, and verified ownership of digital art.
Each NFT contains metadata that distinguishes it from others, even if part of the same collection.
Take CryptoKitties, one of the first major NFT projects:
- Name: CryptoKitties
- Symbol: CK
- Total Supply: 1,309,364 (each cat is genetically unique)
- Contract Address:
0x06012c8cf97bead5deae237070f9587f8e7a266d
Each CryptoKitty is a distinct digital pet with its own traits and breeding capabilities—proving that tokens can represent more than just currency.
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Why Token Type Matters
While both SELF TOKEN and CryptoKitties appear under the "Token" category on Etherscan, their underlying mechanics differ significantly:
| Feature | ERC-20 (SELF TOKEN) | ERC-721 (CryptoKitties) |
|---|---|---|
| Interchangeability | Fully fungible | Unique per token |
| Use Case | Currency, rewards, staking | Collectibles, identity, art |
| Transfer Method | Simple send | Requires NFT-compatible interface |
Despite these differences, both types share the same foundational principle: they are registered digital assets governed by code.
This flexibility allows developers to innovate rapidly—launching loyalty programs, decentralized finance (DeFi) protocols, or immersive metaverse experiences—all powered by tokens.
Core Keywords in Context
To better align with search intent and enhance discoverability, here are the core keywords naturally integrated throughout this article:
- Blockchain token
- 通證
- ERC-20
- ERC-721
- Smart contract
- NFT
- Token standard
- Digital asset
These terms reflect user queries related to blockchain development, cryptocurrency investment, and Web3 innovation.
Frequently Asked Questions (FAQ)
What does "通證" mean in blockchain?
"通證" (tōng zhèng) is the Chinese term for "token." It conveys both access permission and value bearer, reflecting the dual role of blockchain tokens in granting rights and representing assets.
Are all tokens cryptocurrencies?
No. While some tokens function as cryptocurrencies (like stablecoins or utility tokens), others represent non-monetary value—such as ownership of digital items (NFTs), voting rights in DAOs, or proof of identity.
How do I verify a token's authenticity?
You can check its contract address on blockchain explorers like Etherscan. Look for verification status, transaction history, and alignment with known standards (e.g., ERC-20 or ERC-721).
Can I create my own token?
Yes. Using tools like Remix IDE or OpenZeppelin, anyone can deploy a token on Ethereum by writing and funding a smart contract. However, ensuring security and compliance requires technical diligence.
What’s the difference between a coin and a token?
Coins (like BTC or ETH) have their own blockchain. Tokens are built on top of existing blockchains and rely on their infrastructure for validation and security.
Do tokens have real-world value?
Absolutely. Tokens can represent financial value (e.g., stablecoins pegged to USD), intellectual property (e.g., music royalties), or access rights (e.g., membership passes). Their value depends on utility, scarcity, and market demand.
Building the Future with Programmable Assets
Tokens are more than just digital representations of value—they're building blocks for decentralized applications, communities, and economies. From enabling peer-to-peer finance to powering immersive virtual worlds, blockchain tokens are redefining what it means to own, trade, and interact online.
As standards evolve—introducing innovations like ERC-404 (hybrid fungible/NFT tokens) or token-bound accounts—the line between physical and digital ownership continues to blur.
Whether you're a developer launching a project or an investor exploring new opportunities, understanding token fundamentals is essential.
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By mastering the mechanics of ERC-20, ERC-721, and beyond, you position yourself at the forefront of the Web3 revolution—where code governs trust, and tokens unlock access.