Utility tokens are digital assetsDigital assets are items of value that can be stored and traded electronically, including cryptocurrencies, tokens, smart contracts, and other... Read More used to purchase goods or services on a blockchainA Blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a... Read More platform. Utility tokens are often used to fund projects on a blockchain platform and can trade on cryptocurrencyA digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by... exchanges. Utility tokens derive their value from the functionality they enable. For example, a utility tokenTokens and Coins are often erroneously regarded as interchangeable terms. However, while both Tokens and Coins share technical similarity, tokens... Read More may give holders access to a decentralizedDecentralization, an aspect of blockchain technology, facilitates power or authority distribution among individuals, groups, or institutions. A decentralized structure allows... Read More application (dApp) or network of computers that can perform computations or store data. A utility token’s price correlates with the usefulness of the associated platform. The greater the utility of the platform, the greater the demand for its associated token.
