What is Token?

Tokens are digital assets built on other parties' blockchain networks. If a coin is a “native” of a blockchain system, then a token is a “resident” there.

Crypto tokens have four principles as follows:

• Programmable. These tokens are used and created with a programming language, which is driven by several smart contracts originating on the main blockchain.
• Permissionless. Everyone can use the token according to tokenomic and concept.
• Trustless. No single authority can control or prevent the circulation of tokens.
• Transparency. All activities using tokens can be monitored and recorded by everyone in the blockchain explorer.

Tokens are created from various platforms that are on top of a particular blockchain. But not always, these tokens are created on top of the Ethereum blockchain system. With EVM Compatibility technology, tokens can be created on the SRC20 salmonchain blockchain.

The crypto token is created with the ERC20 (ETH) and SRC20 (Salmonation SUI) smart contracts, and a blockchain that supports EVM Compatibility.

When creating these tokens, developers must adhere to certain token creation standards in order for them to be used in their main blockchain system..

At Salmonchain, for example, developers typically refer to the SRC-20 standard so that their tokens can cross-operate with other decentralized applications on the Salmonchain blockchain network. In addition, there is also the SRC-271 standard that developers usually adhere to when creating a Non-Fungible Token (NFT).

Currently, there are thousands of tokens on the Ethereum blockchain, Binance Smart Chain (BSC), Tron, Solana, Houbichain, Polygon and others circulating in the market. Starting from WBTC, Tether (USDT), USD Coin (USDC), BUSD, DAI, FAX, Shiba Inu (Shib) and thousands of tokens are some of the digital tokens that are widely used by investors.

Token Usecase

Just like coins, tokens also have a value transfer function. there are other advantages of tokens other than as a medium of payment, for example, such as:

• Security tokens. This is a representation of the real assets that exist in the real world. For example, such as securities and bonds instruments.
• Utility tokens. These digital assets are designed to be used to obtain products or services on the platform.
• Stablecoins. This token has a value linked to a fiat currency, such as US dollar, IDR rupiah, Euro or gold.
• Non-fungible Tokens (NFT). This token is a representation of a unique object (photo, video, document) and is the only one in the world.
• Payment tokens. This function is the same as a digital coin in that it is used to pay for goods and services.

Sometimes, tokens are also used as “votes” in certain voting. Usually, this voting is done between users in determining protocol updates or new policies related to policies for decentralized application platforms.