What is a Native Token?
A native token is the core digital currency of a specific blockchain platform. This token has vital roles, such as facilitating transactions, rewarding users, and maintaining the network's security. It differs from other tokens primarily in how closely it is integrated into the network's infrastructure.
Native Tokens and Exchanges
On a crypto exchange, native tokens often serve as a means of payment for transaction fees or as a trading pair against other cryptocurrencies. They might also offer holders certain advantages, such as discounted fees or voting rights in governance decisions pertaining to the platform.
Native Tokens in the Context of All-in-One Platforms
In an all-in-one platform, a platform that combines various blockchain-related services, the native token boosts the utility by enabling a seamless service experience. For instance, these tokens can be used to participate in staking, governance, and accessing specific features within the platform.
Examples of Native Tokens
Some well-known native tokens include ETH for Ethereum, BNB for Binance, and SOL for Solana. Each of these tokens serves the technical and economic framework of their respective networks. Investing in a native token often means betting on the success and growth of the platform it represents.
