Token

What is a token?

The term token has been linked from the beginning to early financial systems, referring to a type of chip or coin that replaced real money in a transaction while maintaining full operational capacity. A common example is casino chips, which have no intrinsic value themselves but can represent large amounts of money.

Importance of tokenization

A key characteristic of tokens is that outside the specific financial relationship for which they were created, they have no real value. This feature is precisely the foundation of the tokenization process: the ability to represent or substitute a specific value within a defined context.

Current applications of tokens

Thanks to tokenization, it is possible to protect sensitive information, streamline payments and transactions, and provide greater security in financial and digital environments. Today, tokens play a crucial role in digital payments, cryptocurrencies, and financial security systems, demonstrating their importance in the modern economy.