What is a Token?
A token is a representation. It can represent a physical object, a digital , or even a concept. Tokens are often used in blockchain technology to represent digital assets such as cryptocurrencies, digital collectibles, or other digital assets. They can also be used to represent physical objects such as real estate or gold.
There are fungible tokens and non-fungible tokens (NFT).
Fungible tokens are interchangeable and can be exchanged for one another. For example, one Bitcoin can be exchanged for another Bitcoin. Every Bitcoin is the same as every other Bitcoin and mixed with other Bitcoins.
Non-fungible tokens are unique and cannot be exchanged for one another. For example, a digital collectible cannot be exchanged for another digital collectible. A digital collectible is unique and cannot be mixed with other digital collectibles.
Tokens can be divisible or indivisible. For example, the NEO token is not divisible, while the GAS token is divisible. This means that you can send 1 NEO or 0.5 GAS, but you cannot send 0.5 NEO or 1.5 GAS.
Token divisibility is not related to fungibility. For example, the NEO token is not divisible but is fungible, while the GAS token is divisible and fungible.
The most common fungible token standards are the standard on Ethereum and the standard on Neo. For non-fungible tokens, the most common standard is the ERC-721 standard on Ethereum and the standard on Neo.