Token explained

[eugene111]

Hi, guys
Could you please explain the notion of token or point to me some articles to read.
Is it some minimal atomic unit of available cryptocurrency with some unique id.
For example in bitcoin there can be fractions of bitcon spreaded among UTXOs. Are they tokens?
How are they are emitted? What does it mean - when "some number of tokens has been released"

[bob123]

Could you please explain the notion of token or point to me some articles to read.

There are several meanings of 'token':

• The term token is used in a very general sense to describe any digital asset (where Bitcoin is a token and Ether is a token).
• The term token is used to describe a unit of value (I have X Bitcoin tokens). Here it refers to the fact that cryptocurrencies, like the U.S. dollar, are value tokens / currency tokens / token money (they represent value, but aren’t themselves of any inherent value)
• Meanwhile, sometimes when people say “token” they are specifically referring to digital assets that are built on another cryptocurrency’s platform like Ethereum’s ERC-20 tokens. The native token on the Ethereum platform is Ether, KIN for example is a ERC-20 token created from the KIN ICO. Both Ether and KIN are cryptocurrencies (AKA tokens) on the Ethereum network, but one might refer to KIN as “a token” to differentiate it from cryptocurrencies that use their own platform / network / blockchain.
• Token can also be used to describe “utility tokens” which are tokens that can be used for specific functions in specific systems (such as a token that lets you access a certain amount of cloud storage).
  

Source: https://cryptocurrencyfacts.com/what-is-a-cryptocurrency-token/ (<-- Does explain tokens very well, might be worth a read for you)


In most cases 'token' refers to an ERC-20 token (built on top of ethereum) following the ERC-20 standard.
   

Is it some minimal atomic unit of available cryptocurrency with some unique id.

No. The smallest fraction of a bitcoin is a satoshi. 1 satoshi = 0.00000001 BTC.

For example in bitcoin there can be fractions of bitcon spreaded among UTXOs. Are they tokens?

No. These are simple UTXO's.

How are they are emitted? What does it mean - when "some number of tokens has been released"

This most probably means that a foundation/company/developer/founder of token X has released tokens.
This includes any possible distribution (e.g. aidrop, token sale, ..). This means they have been brought into circulation.

[shahzadafzal]

Hi, guys
Could you please explain the notion of token or point to me some articles to read.
Is it some minimal atomic unit of available cryptocurrency with some unique id.
For example in bitcoin there can be fractions of bitcon spreaded among UTXOs. Are they tokens?
How are they are emitted? What does it mean - when "some number of tokens has been released"

In addition to above valuable comments from @bob123.

Please note there is fundamental difference between coins (altcoins) and tokens.

1. Coins are independent, run their own blockchians and protocols - its a currency (crypto currency)
2. Where as tokens require another platform to run, they utilize existing blockchians through the use of smart contracts

Coins Examples:
Bitcoin, Litecoin, Monero etc

Token Examples:
This list is long, but I will mention the famous ones EOS, TRX (Tron), STORM etc.

Is it some minimal atomic unit of available cryptocurrency with some unique id.
For example in bitcoin there can be fractions of bitcon spreaded among UTXOs. Are they tokens?

No, these are not tokens. UTX are unspent transaction outputs, . (I hope you have understanding of UTXOs)

Units of bitcoin are
BTC                   NAME
0.00000001        satoshi
0.0000001         finney
0.000001           bit (μBTC, micro-bitcoin)
0.001                 mBTC(millibit, millie)
0.01                  bitcent(cBTC)

What does it mean - when "some number of tokens has been released"

Token releasing me issuing tokens to users. Usually this happens you participate in a bounty or an airdrop campaign and after the end of campaign they (owners) will release the tokens to you. Or simple words handover to you.

[mindrust]

Tokens are either backed by real assets like gold, real estate, FIAT money, whatever you name it or, they promise you a future technology and let you to make a preorder for this awesome stuff. Either way they don't have their own blockchain but instead, they depend on some other blockchain to secure their assets.

That's why ICO & Tokens usually go hand to hand. They give your a road map, a white paper which describes the awesome technology they'll bring to you and they collect your money and give you a chance to be an  early adopter.

For example, EOS is a token for now. It lives on the ETH chain and basically does nothing other than pump and dumps since it is not backed by real assets like i mentioned earlier, but when they accomplish what they promise, it will have its own blockchain and it won't be a token anymore.

[innovator256]

token = fungible secure tangible representation of any unit of account in the crypto context