Utility token is special type of cryptocurrency token designed to provide access to a function or service in a blockchain ecosystem. Different from security tokens which are similar to shares and focus on the financial investment aspect, utility tokens are more related to practical use within the framework of a specific project.
Examples include payment of transaction fees, access to certain features on the platform, or participation in the ecosystem's voting system. These tokens play an important role in building and maintaining the blockchain ecosystem, creating an internal economy where they serve as currency for services or goods within the network.
It is important to note that utility tokens are not intended as financial investments; they do not provide dividends or ownership rights. However, they remain in areas that are frequently monitored by regulators, making it important for token creators to comply with local regulations.
Examples of utility tokens include Filecoin, which is used for data storage transactions, and BAT (Basic Attention Token) in the Brave browser, which is used to reward users and advertisers. Overall, utility tokens are an important component in the blockchain world, facilitating interactions between developers and users and supporting the exchange of value within the platform.
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