Mastering Blockchain - Third Edition

18

Tokenization

A token is a representation of an object. We use tokens in many different fields, including economics and computing. In daily life, tokens have been used to represent something of value, such as a gift voucher that is redeemable in exchange for items. In computing, different types of tokens are used, which can be defined as objects that represent eligibility to perform some operation. For example, an access token is used to identify a user and its privileges on a computer system. A hardware security token is used in computer systems to provide a means to authenticate a user (verify their identity) to a computer system. Tokens are also used in computer security mechanisms to substitute sensitive data with non-sensitive equivalents ...