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A token is a digital representation of an asset or utility.

The blockchain is the best solution to represent values that can be exchanged.

As a consequence, multiple token standards exist on the Tezos blockchain:

FA1.2FA1.2TZIP-7A very simple ledger that represents one fungible token.
FA2FA2TZIP-12 and TZIP-16A standard that can represent multiple fungible tokens or NFTs.