A native token in cryptocurrency refers to the primary token that is used to operate within a specific blockchain or decentralized network. These tokens are usually created when the blockchain is developed and are essential for conducting transactions and accessing services within that ecosystem.
Native tokens can have various functions depending on the blockchain they belong to. They may be used for payment, governance, voting, staking, or as a means of access to decentralized applications.
These tokens are typically not interchangeable with other cryptocurrencies and are designed specifically for use within their respective networks. This means that they cannot be easily transferred or used outside of the platform they were created for.
Investors and users of a specific blockchain must acquire the native token in order to participate in the network and take advantage of its features. The value and demand for native tokens are influenced by the popularity and functionality of the blockchain they are associated with.
