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 blockchainAs a distributed ledger technology (DLT), a blockchain is a digital ledger that can create an immutable record of transactions.... Read More platform. Utility tokens are often used to fund projects on a blockchain platform and can trade on cryptocurrencyCryptocurrency is decentralized digital currency secured by cryptography. Cryptocurrency utilizes cryptographic protocols to record ownership and prevent counterfeits (when ownership... Read More exchanges. Utility tokens derive their value from the functionality they enable. For example, a utility tokenTokens are created and distributed on a blockchain and can represent a variety of assets or utilities, including commodities, loyalty... 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.
