Does every blockchain need a token?

No but in general, public permissionless blockchains prefer tokens for some real benefits : One is that tokens can be utilized to prevent network attacks. If you have to spend some tokens for each transaction, than it is very unlikely that you’d spend millions of tokens for attacking the honest nodes to fail them.

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What is a blockchain token?

Crypto tokens are digital assets that are built on another cryptocurrency’s blockchain . A blockchain is a digital ledger that stores information in blocks that are linked. This information can be transaction records or full-fledged programs that operate on the blockchain, which are called smart contracts.

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How do blockchain tokens work?

Cryptographic tokens represent a set of rules, encoded in a smart contract – the token contract. Every token belongs to a blockchain address. These tokens are accessible with a dedicated wallet so ware that communicates with the blockchain and manages the public-private key pair related to the blockchain address.

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