A digital token is a type of asset created and managed on a blockchain. These tokens can represent various forms of value, including currency, assets, or even rights within a specific network. Unlike cryptocurrencies like Bitcoin, which primarily function as money, tokens often have specific purposes.There are generally two main categories of digital tokens: utility tokens and security tokens. Utility tokens provide access to a product or service within a platform, facilitating transactions or offering special features. Security tokens, on the other hand, represent ownership of an asset or share in a company, and they often come with regulatory considerations.Digital tokens can be traded on various exchanges, and their value can fluctuate based on supply, demand, and the underlying asset or service they represent. Users can store tokens in digital wallets, making them easily transferable.Overall, digital tokens are an important part of the blockchain ecosystem, enabling new business models and investment opportunities. They have the potential to transform industries by enabling peer-to-peer transactions without intermediaries, enhancing efficiency and accessibility.