What is Native Token?
A native token is any cryptocurrency asset that can be used to service a protocol natively and get payment in return. Examples of native tokens include those found in masternode protocols like XZC and DASH, as well as those used in Proof-of-Stake blockchains like ETH2.0.
Understanding of Native Token
Numerous native tokens exist, each with its own blockchain. The native tokens of the Ethereum blockchain are called Ether (ETH), Binance Coin (BNB) on the Binance Smart Chain, and ADA on the Cardano blockchain.
For developers, native support has several benefits. For example, handling custom tokens eliminates the need to write smart contracts, adding another level of complexity and reducing the possibility of human mistake because the ledger manages all token-related operations. The ledger model’s current accounting architecture, which was designed to process ada-only transactions, is expanded to support transactions using a variety of assets by the native tokens feature, among these resources are many user-defined custom tokens and ada.
Latest news about Native Token
- Blur, an NFT marketplace, has launched its public version after four months of beta. To celebrate, the startup launched an airdrop of its native token, $BLUR. The platform aims to increase decentralization and move the NFT space towards institutional grade. Paradigm invested $11 million in Blur’s Seed Round in March. Eligible individuals have thirteen days to claim the airdrop, and will receive “Care Packages” containing $BLUR tokens. The second airdrop is scheduled for November.
- Optimism’s native token experienced a significant drop in valuations after users noticed $450 million in currency left their public multisignature wallet. The alleged hack, which sparked a Twitter flurry, did not occur. CoinMarketCap reported a 10% drop in the OP token’s value, with the coin falling to as low as $1.29. Optimism later clarified the cause of alarm and pledged to practice transparency. However, users are still concerned about the situation, with DeFi Llama illustrating that their Total Value Locked (TVL) ballooned from $285 million to $1.11 billion on August 14. Optimism’s latest price action follows a series of developments, including OP Labs’ planned Bedrock upgrade in Q4 2022.
Cardano native tokens are digital assets that are built directly on the Cardano blockchain, using its native token standard.
Avalanche is a blockchain platform that has its own native cryptocurrency called AVAX. AVAX is the native token of the Avalanche network and serves various purposes within the ecosystem.« Back to Glossary Index
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